Its revenue from overseas business rose by 13%, while domestic sales in Thailand grew by nearly the same level as last year.
Sooksunt Jiumjaiswnglerg, CEO – agro industrial business and co-president of CPF, said: “CPF has invested in many countries to support our modern farming development in livestock business to allow the company to produce high-quality meat. In addition, it also invested in the food business in countries with high import barriers, such as the USA and the European Union. This overseas investment is a core factor in stimulating CPF’s business growth. During the first nine months of this year, the company’s overseas business sales jumped by 13%, while domestic revenue increased by the same level as last year.”
Livestock surplus in south-east Asia
Overseas sales accounted for 64% and domestic sales for 30% of its total revenue, while exports from Thailand made up the remaining 6%.
CPF’s overseas food business rose to a record high of 72% this year, driven by investments as well as merger and acquisition deals last year.
The company has had a presence in Germany since October 2017, bringing the number of countries it operates in to 17.
Sooksunt did warn that livestock farming was facing an oversupply problem, particularly pigs in Vietnam, Cambodia and Thailand. As a result, the price has dropped to a lower level than last year. Pig prices in Vietnam plunged by 40%, forcing the company to sell meat at a price lower than the cost of production. This oversupply reduced the company’s profit.
He noted that the company has put in place measures to reduce cost and expenditure, by increasing efficiency in both production lines and operations.