GFPT Nichirei Opens New Processing Plant

THAILAND - GFPT Nichirei (Thailand) Co (GFN), a joint venture between GFPT Plc and Nichirei Food Inc, has officially opened a new 2.2 billion-baht (THB) chicken processing plant for the domestic and export markets.
calendar icon 23 December 2010
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The plant in Chon Buri will produce chicken meat and cooked chicken products for export to Japan and other international markets with a production capacity of 100,000 birds per day for the slaughterhouse and 1,500 tonnes per month for further processing, according to Bangkok Post.

The plant, which has been running on a trial basis this year, is estimated to achieve full production utilisation by the end of 2011.

"Under the joint venture agreement, GFPT is an exclusive supplier of live chickens to GFN. Once at full capacity, we will gain about THB£ billion from live chicken sales to GFN," said Anan Sirimongkolkasem, the chairman of GFPT's executive committee.

GFPT expanded more than 100 chicken houses of its existing broiler farm facility by investing THB1.5 billion to supplement GFN's contribution.

GFPT is one of Thailand's leading chicken producers and exporters with THB11.5 billion in revenue in 2009, mostly from exports.

In the joint venture formed in 2008 with registered capital of THB1.17 billion baht, the Thai company holds 49 per cent of the stake, and Nichirei Foods the remaining 51 per cent.

Dr Anan said that as GFN was a major expansion for GFPT in the past 10 years, he was confident that the venture would lift GFPT's revenue by about THB1.5 billion or 12 to 15 per cent over this year.

Yoshihiko Soma, chairman of Nichirei Foods Inc, said increased concerns among Japanese consumers over the safety of imported meat and increasing prices were the reasons for Nichirei to outsource to a quality supplier in Thailand, reports Bangkok Post.

As the world's leading chicken meat exporter, Thailand plans to ship out about 420,000 tonnes of chicken meat this year, mostly cooked and processed chicken products.

Apart from the investment with GFPT, Nichirei Foods already has a presence in Thailand from its joint venture in 1988 with Surapon Foods Plc to produce and export frozen processed chicken.

Last month, Surapon Nichirei Foods Co opened a new THB500-million factory as part of a plan to increase domestic sales and expand exports.

Mr Soma added that the investment with GFPT enabled Nichirei to engage in upstream manufacturing to ensure the quality of meat along with a steady supply and cost efficiency.

GFN's factory emphasises modern technology, green production techniques and information technology to ensure the reliability and traceability of its system.

Raw chicken from the GFN plant will be distributed to food services in Chon Buri and the eastern provinces. It will export frozen processed food abroad, mainly to Japan to tap into strong demand for ready-to-eat meals.

Further products include concentrated chicken soup and seasoning powder.

One benefit is the close proximity to GFPT's broiler farms and the Laem Chabang seaport to reduce transportation costs, concludes the Bangkok Post report.

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