CPF cooked poultry exports to rise
Charoen Pokphand Foods Plc (CPF) expects to export 95,000 t of cooked poultry products in 2009, 10% more than in 2008.
However, it is also reported that the value of cooked poultry products this year is expected to fall by10%. This is due to lower selling prices in line with eased oil prices and lower raw material costs.
Shrinking global consumption due to the economic recession – notably in the EU, CPF’s key market representing 30% of its sales – will affect the company’s export prospects, says CEO Adirek Sripratak projecting a flat growth in its total sales revenues this year.
According to Sripratak, CPF’s sales were estimated at 150 bln baht in 2008 (15% increase over 2007), while net profit was estimated at 3.2-3.5 bln baht (1.27 bln in 2007). However, in terms of profitability, CPF expects a better bottom line given an ongoing cost-saving programme, lower production costs and easing oil prices.
Chicken sales to drop in 09
CPF expects chicken sales in the EU, which currently account for 55%, to drop by 5-8% in 2009 due to lower demand, followed by Japan 35% and other markets in Asia and the Middle East. To offset the sales drop in Europe, the company would seek new markets, such as those in Africa.
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