Quantcast
Latest Stories

Thailand’s ‘Kitchen of the World’ puts P7 billion in PH

By

Pinij Kungvankij

BANGKOK—For the Philippine unit of Charoen Pokphand Group, a Thai multinational conglomerate which has been present in at least 15 countries in the last eight decades, the Philippines is an eye candy for the group’s expansion.

Top executives of the Charoen Pokphand Foods Philippines Corp. were riding on high hopes that their current livestock and feed production in the country would sail smoothly despite protests from local industry players and calls for the Philippine government to withdraw the tax incentives earlier granted to the company.

“We have been interested in the Philippines for quite sometime. Yes, it took us several years to finally invest because we want to do everything slowly but surely,” Pinij Kungvankij, vice chair of Charoen Pokphand Foods (CPF) Philippines Corp., tells reporters here.

In fact, for CPF Philippines, the timing was just right. “We will be ahead when others decide to come to the Philippines,” Kungvankij says referring to the inevitable economic integration of the Association of Southeast Asian Nations (Asean) beginning 2015.

He tells reporters that the Asean integration was a major consideration when the company decided to start infusing investments into the Philippines last year.

The parent company of CPF, CP Group is one of the first Asian multinational companies with revenue reaching $33 billion yearly. It has subsidiaries in 15 countries in the world engaged in several businesses, including agribusiness, food processing, retail, telecommunications and property development.

Claiming to be “Kitchen of the World,” CPF, a publicly listed company in Thailand, aims to bring to the Philippines its integrated agro-industrial technology through an initial investment of P7 billion.

It was granted pioneer status by the Board of Investments in the Philippines last year, making it eligible for tax incentives. For its swine project in Pampanga, which involves breeding of great grandparent stocks to parent or breeding stocks, it was given a four-year income tax holiday. Its broiler project in Bulacan was given a six-year income tax holiday.

According to CPF Philippines, it has yet to avail itself of the tax incentives since both projects have just started commercial production early this year.

Food processing plant of CP Foods in Saraburi, Thailand.

Its aqua feed mill in Samal, Bataan, which will produce fish and shrimp feeds for local fishpond operators and owners, is scheduled to open this month.

Arnnop Jeanprasert, senior vice president for livestock feed business of CPF Philippines says, however, that their production, even if it would meet its target of accounting for 5 percent of the market in five years, would not kill local livestock raisers.  “There is still enough space for local producers,” he says.

Filling the supply gap

Its cutting edge technology—the tunneled ventilated broiler and swine house and automated machines, among others—intends to increase production efficiency by 25 percent and reduce the host country’s importation of meat products, according to company officials.

“As a result, food prices will be stable and people can access more meat products at a reasonable price,” Adirek Sripratak, president and chief executive officer of CPF, says in a statement.

In 2012, the country imported 150,000 tons of pork from the United States and Canada and 130,000 tons of chicken from the US and Brazil.

Since 2005, CPF Thailand has been supplying 2,000 metric tons of aqua feeds to distributors in Cebu.

He says the company saw potential in the Philippine market given its growing domestic consumption of meat on the back of a rising population.

At present, to meet domestic demands, the country breeds 1.5 million of hogs and 13.7 million day-old chicks. About 670 million broiler chicken can be produced in one year.

Thus, the country needs to import 90 million broiler chickens per year to fill the supply gap.

“We were asked to start a business in the Philippines so imports will be reduced. We will get raw materials (from the Philippines) and directly hire people there,” Kungvankij says.

“We agreed to invest in the Philippines because we knew that your country and people and our company would benefit from this,” he adds.

CPF has drawn up a five-year plan, targeting to hire some 660 contract growers for the broiler project to produce 33,000 day-old-chicks by 2017.

When asked about their long-term plans, however, Kungvankij couldn’t provide a complete picture. “It’s really hard to say now. It depends on how our production will go,” he says.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Charoen Pokphand Group , food , food processing , livestock

  • Gianni Moscatto

    Yang nag comment dito na ang Thai ay Intsik din ay isang napakatanga at ignorante. Paanong magiging Intsik ang Thai eh di pareho ang lingwahe at kultura? Ignorante talaga. Ignorance is very dangerous kasi it will lead to fanaticism and extremism.

    • Danyale Quinto

      ha ha ha, pagpasensiyahan na, akala niya lahat ng singkit intsik…(sa salitang Thai: sawadee kap, mai mi panha = hello/hi, no problem)…….(sa salitang Intsik: Ni Hao Mah) …^_^

    • gikiness

      sino po yang tanga na yan? malapit na ang election dapat maeducate o marehab na yan para makaboto ng tama

    • DIGOYBULOY

      LOL sige mag bulag-bulagan ka jan. magresearch ka nga “demographics of thailand” para malaman mo!

      Eto po galing sa wikipedia;
      Thai Chinese are well represented in all levels of Thai society and make up a significant percentage of Thailand’s business and upper class.[3] They are estimated to produce 50% of Thailand’s overall GNP.[4] They play a leading role in the Thai business and commerce sector

      Sino ngayon ang ignorant? No to charoen pokpok group!

    • Yxon

      i think thais came from chinese and malay stock.

  • DIGOYBULOY

    Eh intsik din yan eh! No to thailand and charoen pokpok group!

    • OZBOYS

      Engot di yan chekwa… lol

  • akramgolteb

    Patay kayo sa mga Tongressman at Epalnators. Yun P7B ninyo P2B lang ang magagamit ninyong kapital, yun P5B a tongpats pupunta.



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Napoles tags over 100 officials in pork scam – Lacson
  • Vitangcol to sue Czech envoy
  • Senator’s kickback from pork bigger than those of Enrile, Estrada, Revilla – Lacson
  • 43 out of 414 Etihad passengers yet to be found, tested for MERS-CoV – Palace
  • Sandigan junks Marcos family claim to Paoay property
  • Sports

  • Caguioa blasts ‘no heart, soft’ Ginebra on Twitter
  • San Mig Coffee grinds out win over Alaska to force decider
  • UP nips St. Benilde; Adamson blasts RTU in Filoil women’s caging
  • Kevin Garnett responds to Raptors’ GM F word
  • Albert Pujols hits 500th HR of major league career
  • Lifestyle

  • Entering the monkhood a rite of passage
  • Haneda International Airport: A destination on its own
  • Wanted: Beauty queen with a heart that beats for the environment
  • Kim Atienza: At home with art and design
  • Life lessons I want to teach my son
  • Entertainment

  • Bollywood Oscars, film stars come to Florida
  • Ex-Fox exec denies allegations in sex abuse suit
  • Kris Aquino backtracks, says Herbert Bautista and her are ‘best friends’
  • Summer preview: Chris Pratt enters a new ‘Galaxy’
  • Bon Jovi helps open low-income housing in US
  • Business

  • SM to rebuild Tacloban hospital
  • PSEi slips after 4-day rally
  • Toyota sells 2.58 million vehicles, outselling GM
  • McDonald’s 1Q profit slips as US sales decline
  • SEC approves SM’s P15B retail bond offer
  • Technology

  • ‘Unlimited’ Internet promos not really limitless; lawmakers call for probe
  • Viber releases new design for iPhone, comes to Blackberry 10 for the first time
  • Engineers create a world of difference
  • Bam Aquino becomes Master Splinter’s son after Wiki hack
  • Mark Caguioa lambasts Ginebra teammates on Twitter
  • Opinion

  • One-dimensional diplomacy: A cost-benefit analysis of Manila’s security deal with Washington
  • No ordinary illness
  • Reforest mountains with fire trees and their kind
  • Day of the Earth
  • When will Chinese firm deliver new coaches?
  • Global Nation

  • 19 Ukrainians, Russians, Filipinas rescued in bar raid
  • Filipinos coming home from Mideast must obtain MERS clearance – DOH
  • US Secret Service in Manila ahead of Obama visit
  • Palace thanks Estrada for successful HK mission
  • Hong Kong accepts PH apology; sanctions also lifted
  • Marketplace