Thailand’s biggest shrimp, pork and poultry processor CPF said full-year sales revenue should hit THB500bn (US$15bn), a 10% rise on last year.
Expected sales from overseas business have boosted CPF’s bullish expectations for end-of-year results.
With operations in 17 countries, including China, the European Union, the UK and the US, CPF has acquired a number of companies recently, particularly in markets with high trade barriers. This strategy allowed CPF to circumvent tricky trade barriers and capitalise on growth in markets to which it struggled to export meat. A US$1bn takeover of US-based Bellisio Foods is one case in point.
Sooksunt Jiumjaiswanglerg, CEO of CPF’s agro-industrial business, said the company could invest in global expansion to maintain its position as a leading, sustainable food producer.
Increased vertical integration of the massive supply chain helped to improve efficiency and lower costs, which freed up cash for reinvestment.
The business did not go into detail about the countries or companies it had identified as areas for growth in 2018. But the growing urbanisation of Asia was highlighted as one of the social changes that will lead to increased demand for convenient food products, according to CPF.
More automation in the company’s production lines, alongside installation of analytics software, could be on the way too. Both would help to make CPF a much more efficient producer of meat.
Jiumjaiswanglerg said adaption of this technology would “enhance the company’s competitive [status] and affirm its world-class position”.
The United Nations Food and Agriculture Organization (FAO) ranked CP Group as the world’s fourth-largest food producer, according to the business.