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.
Charoen Pokphand Foods Plc
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