Published: 4 Mar 2013
Bangkok Post
SET-listed Charoen Pokphand Foods Plc (CPF),
the flagship company of the Charoen Pokphand (CP) Group, is ramping up
its investments in Laos and Cambodia as part of its plan to prepare for
regional economic integration in 2016.
Mr Sakol stands in front of CPF’s feed mill plant in Vientiane.
Sakol Cheewakoset, the president of CP Laos and CP Cambodia, said a
combined 250 million baht is being invested to set up a new silo and
drying plant for maize at Pailin in Cambodia, and a new feed meal plant
in Champasak, Laos. The goal is to strengthen the group's integrated
agro-industrial business to serve the upcoming single market under the
Asean Economic Community (AEC).
CP has invested in Cambodia since 1995. Its combined investment there
amounts to 3 billion baht, largely spent on feed, livestock farms and
food-related production units such as sausage plants and
slaughterhouses.
Mr Sakol said the silo and drying plant are to ensure effective
distribution in western Cambodia and reduce logistics costs as the area
is important for agricultural production.
He added the company is mulling investing in an aquatic business in Cambodia in the near future.
"CP's business in Cambodia is doing well as the food business still
has opportunity to grow. Our five-year business plan aims to double our
total sales every year," said Mr Sakol.
For Laos, CPF plans a combined investment of about 1 billion baht
mainly on the feed, farm and food sectors. Its food business there is
just in the opening stages, with "Five-Star" grilled chicken starting
only recently.
CP Laos started operations in 2006, running animal feed and livestock businesses.
It has one feed mill in Vientiane with production capacity of 10,000
tonnes per month. The new feed meal plant in Champasak province, slated
for this year, will have production of 5,000 tonnes per month to serve
consumption in the country's southern region. The plant is expected to
reduce logistics cost by eliminating the need for transport from
Vientiane.
Mr Sakol said the company is studying the possibility of launching
organic production both for livestock and plants in the two countries to
cater to growing organic food consumption.
"The general election in Cambodia is this July and should stabilise
the political situation, while Laos has a policy to deliver its people
from poverty by 2020," he said.
THE NATION March 4, 2013 1:00 am
Charoen Pokphand Foods is preparing to invest more in Laos and Cambodia to set up feed mills and livestock farms.
CP Laos and CP Cambodia are investing a combined Bt250 million to set
up a new silo for maize in Cambodia and a new feed-meal plant in Laos to
strengthen CPF's integrated agricultural-industrial business as the
Asean Economic Community (AEC) approaches.
The investment will involve the purchase of a maize silo and drying
plant in Cambodia and the establishment of a new feed-mill plant in
Champasak province, southwestern Laos.
The company has also invested further in its three core businesses of
feed production, farming and food processing in the two countries. Its
businesses there are focused on the efficient development of the supply
chain to access quality raw materials. This is aimed at making CPF well
placed to serve rising demand once the regional single market is
established in 2015.
Sakol Cheewakoset, president of CP Laos and CP Cambodia, said the
opening up of the regional market under the AEC would create great
business opportunities for both investment and export to neighbouring
countries as well as developed nations.
CPF is continuing to invest in Laos and Cambodia to take advantage of
increasing purchasing power of people there. Moreover, the two countries
are fully supportive of the CP subsidiaries. Political stability in
both countries has prompted economic growth to ensure sustainable
business development.
Most recently, the company has invested in developing a silo and drying
plant for maize in Pailin province, western Cambodia. The investment is
to ensure high-quality raw material to serve its feed production for
both the domestic market and export.
Since 1995, CP has invested a total of Bt3 billion in Cambodia,
including feed production, livestock farming and food processing such as
sausage-making and slaughterhouses.
Sakol said the plant in Pailin province would ensure the company's
distribution in western Cambodia, an important area for agricultural
production. Having a plant there will reduce logistics costs. Initially,
capacity is set at 10,000 tonnes per month.
The company is also considering investing in aquaculture in Cambodia in the near future.
"CP's business in Cambodia is doing well, as food business still has
great opportunity. Our five-year business plan aims to double our total
sales every year," Sakol said.
He added that Cambodia had to import feed meal and live swine from
neighbouring countries. CP Cambodia's revenue is growing by an average
of 20 per cent a year, but it hopes to achieve 30 per cent growth this
year from its business expansion.
Meanwhile, investment in Laos has reached approximately Bt1 billion in
the feed, farm and food businesses. However, the food business is in the
beginning stage, with only Five Star grilled chicken launched so far.
CP operates one feed mill in Vientiane with production capacity of
10,000 tonnes per month. The new plant in Champasak province will have
initial production capacity of 5,000 tonnes per month to serve
consumption in southern Laos. Having a plant there will reduce the
company's logistical cost by avoiding the need to transport goods from
Vientiane.
Sakol noted that CP Group chairman Dhanin Chearavanont had said the
group should not concentrate only on feed, farming and food processing
but also on organic production of both livestock and crops in Laos and
Cambodia. This plan aims to serve their growing economy and increasing
the number of foreign visitors.
Moreover, organic production would enhance the two countries' exports
to North America and the European Union. The most important thing is to
create and organic supply chain in both countries.
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