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Thai Foods Group Invests in Future Growth

by 5m Editor
4 May 2011, at 9:47am

THAILAND - Thai Foods Group plans to become a listed company in 2013 and to double output of its pig, broiler and egg businesses, mostly for the domestic market.

Rising food prices have persuaded Thai Foods Group to become a listed company in 2013 with an expected sales value of between 40 billion and 45 billion baht (THB), reports The Nation.

In the meantime, the company plans to invest THB3.2 billion in developing its integrated livestock business, which includes grandparent and parent stocks, pig and chicken farms as well as slaughterhouses and feed and layer facilities.

The investment will double capacity of these businesses.

If the plan is successful the company will move from being the country's seventh-largest chicken producer to the fourth-largest.

However, the company has no plans to enter the export business.

"We foresee the food business growing in terms of demand and prices. Major chicken producers have focused more on exports, which paves the way for us to boost the domestic market," said Chaisaks Boonprasopthanachote, chief executive officer of the group.

Of the investment, THB1.8 billion will be spent on doubling grandparent and parent broiler flocks, THB250 million will go on setting up a new slaughterhouse to increase capacity from 200,000 birds to 420,000 by 2013, while THB100 million will be spent on layer hens.

Last year, the group's broiler supply reached an average of 900,000 to one million birds a week. It is targeting an increase in supply to 1.5 million birds per week this year and to 2.5 million per week by 2013.

Moreover, the company will boost its pig business by investing THB1 billion to expand grandparent and parent stocks to 30,000 pigs. The plan will allow the company to raise pig supply from 15,000 animals to 45,000 by the end of this year.

Almost 100 per cent of the group's production goes to the domestic market.

Mr Chaisaks said the group's results had enjoyed 100 per cent growth since 2007, when sales totalled THB3 billion.

Last year the figure reached THB16.5 billion. It hopes to achieve THB22 billion this year, THB30 billion next year and Bt40 billion by the end of the plan.

The group is working closely with KT ZMICO Securities as its financial adviser.

According to The Nation, Mr Chaisaks added that chicken prices had jumped 30 per cent while pork rose 20 per cent during the past three months. This was due to lower supply as chicken production dropped 20 per cent because of the changing climate.

"Successful livestock companies have to focus on flexible management to cope with environmental changes to reap every baht of rising prices with the lowest waste. If only one hen can survive, you get an advantage over your rivals," he said.