Newly opened CPF's feed mill in Russia

Charoen Pokphand Foods Plc (CPF), Thailand’s leading agro-industrial and food conglomerate, has planned to expand its investment to Ukraine and other Eastern European countries after opening a feed mill in Russia last month.

Adirek Sripratak, CPF’s president and chief executive officer, however did not elaborate on the plan to invest more in the region but confirmed that the investment in Russia is a very important step for the company.

Adirek last Friday disclosed that the feed mill and integrated swine business, which had been officially opened on May 25, is run by Charoen Pokphand Foods (Overseas) Co., Ltd., a CPF’s subsidiary in Russia with a registered capital of 900 million rubles, and located in the town of Lukhovitsy, southeast of Moscow.

The CPF’s chief said the company has so far invested up to 3.5 billion baht in agro-industry and food business in Russia, and the newly opened feed mill in Lukhovitsy is one of its most advanced feed mills and the biggest feed mill in Russia.

He said the feed mill will mainly produce feed for swine, chicken and cow at the capacity of about 240,000 tons a year while the two swine farms, which are now under construction, are expected to produce about one million pigs a year within the next five years.

“Russians are keen on meat consumption. The current demand for pork is about 2.75 million tons a year while the annual production capacity is only two million tons so the country needs to import 750,000 tons of pork annually. The company would then have a good opportunity to produce the products at lower cost to substitute the import,” he said.

In addition, he said, CPF will be able to expand the investment into other meat processing business and, after the success in Russia, the next target is Ukraine and other Eastern European countries.
Moreover, Adirek also revealed that CPF is expecting a better company performance for this year, with a ten-percent increase of sale volume, due to current strategies to put emphases on marketing of CP brand products and oversea expansion.    

CPF is now exporting several food products under CP brand to more than 20 countries worldwide while exporting processed chicken, shrimp and other products to some 40 countries.

In addition to Russia, the company has so far invested in animal feed factories, animal farms or processing plants in seven other countries, namely Turkey, Malaysia, Laos, the Philippines, United Kingdom, China and India.