CP Foods snaps up stake in South American shrimp processing firm

23-Apr-2018 - Last updated on 23-Apr-2018 at 03:16 GMT

CP Foods has acquired 40% shares of Brazilian shrimp firm Camanor Produtos Marinhos Ltd. ©iStock

Thai conglomerate CP Foods has acquired 40% shares worth US$17.5 million in Brazilian shrimp farm and processor Camanor Produtos Marinhos Ltd, as part of its efforts to move into higher-value segments.

Adirek Sripratak, chairman of the executive committee at CP Foods, said the company agreed to purchase a total of 4,666,667 newly-issued ordinary shares.

He added that the partnership would help CP Foods extend its businesses into the feed and hatchery sector.

The deal is expected to be completed within one month after the investment agreement was signed.

According to Adirek, CP Foods’ (CPF) total shrimp capacity reaches an average of 100,000 tonnes per year, which is not enough to fulfil domestic demand.

“It is the synergy investment which will strengthen CPF’s competitiveness in shrimp business in terms of feed production, genetics improvement and shrimp processing capacity through the company’s vision “Kitchen of the World” by applying Camanor experiences in shrimp farming technology and CPF expertise in shrimp genetic,” said Adirek.

Camanor engages in shrimp farming and primary processing businesses in Brazil. Its main products include fresh and frozen processed shrimp distributing through domestic wholesalers and exports to countries such as France.

It has also developed and owned shrimp farming technology called AquaScience, which is a close operating system raising shrimp in a high-density environment without using chemical or antibiotics, resulting in high productivity per farm area.

Brazil is a major source of agricultural materials required for the production of shrimp feed and is also a high potential market with a sizeable population and economy. It will also provide geography diversification on CP Foods’ shrimp production operations.