Latest news with #CharoenPokphandFoods
The Star
3 days ago
- Business
- The Star
Thai poultry industry poised for growth on Brazil bird flu, lower feed costs
BANGKOK (Reuters): Thailand's poultry sector is poised to grow this year, as an avian flu outbreak in top exporter Brazil creates market opportunities, and lower feed costs improve margins for the world's third-largest shipper of chicken meat, industry leaders said. Prasit Boondoungprasert, CEO of Charoen Pokphand Foods , Thailand's largest agribusiness, said the current market situation is favourable for the Thai poultry industry. "Prices are reasonably good, costs are low," he said. However, gains for Thailand from Brazil's problems hinge on the length of the bird flu outbreak and the duration of import bans in some markets. "If it's shorter than three to six months, the impact will be minimal. After that, there will be some upside," said Veera Titayangkaruvong, investor relations manager at Thai poultry exporter GFPT. Brazil began a 28-day bird flu observation period last week, hoping to confirm disease-free status after disinfecting the affected farm. Global prices of key feed ingredients such as corn and soy meal have declined around 30% in recent years. And while lower costs benefit the industry globally, Thai firms such as CPF, GFPT and Betagro are well positioned due to control of fully integrated supply chains, from feed mills to farms and processing plants. MARKET SHARE Major importers China and the European Union have this month suspended Brazilian poultry imports, while Japan halted meat imports from the southern city of Montenegro due to an avian flu outbreak, opening a window for Thai exporters to capture market share. "Customers are increasingly thinking about risk management. If they rely too much on Brazil ... they have to diversify," Prasit told Reuters. U.S. poultry prices have risen 3% in May. Veerapong Panjawattanakul, owner of Pongsak Agricultural, said he plans to increase production by 5%, while Anupong Pipatvacharaporn of Somchit Farm in Nakhon Pathom said idle farms could be restarted if prices rise further. "Chicken coops, the old ones that went out of business, they are being put up for sale (or) rent online." Brazil's poultry exports dipped in May, according to government data. The outbreak threatens up to 1.5 million metric tons of Brazilian poultry exports and Thailand could fill between 300,000 and 400,000 tons of that gap, generating up to $1.7 billion, said Pimnara Hirankasi, chief economist at Krungsri Research, a unit of Bank of Ayudhya. More than half of Thai chicken exports are processed products, allowing the industry to tap into growing demand for ready-to-eat chicken, compared with Brazil's 2.5%, she said. Before the Brazil outbreak, Thailand forecast an annual rise of 2% in poultry exports, said Kukrit Arepagorn of the Thai Broiler Processing Exporters Association. "It's a positive factor for exports," he said. "But it depends on how long the ban on Brazil lasts." (Reporting by Chayut Setboonsarng, Panarat Thepgumpanat; Editing by Naveen Thukral and David Holmes) - Reuters
Yahoo
04-03-2025
- Business
- Yahoo
Thai lawsuit targets Charoen Pokphand Foods over invasive fish impact
BANGKOK (Reuters) - A Thai court on Tuesday accepted a class action lawsuit against food giant Charoen Pokphand Foods for causing environmental damage from the rapid spread of an invasive fish species, a lawyer for the plaintiffs told Reuters. CP Foods is part of agro-industrial conglomerate Charoen Pokphand Group, which owns the country's second-largest mobile network and largest convenience store operator. The case is being brought by 10 fishermen from Samut Songkhram, a province by the Gulf of Thailand, known for its fishing industry. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. The class action, a rare legal procedure in Thailand, centres around the blackchin tilapia, a fish native to West Africa, which was brought to Thailand a decade ago. They prey on shrimp and snail, disrupting Thai aquaculture industry and native ecosystems. The action is seeking 2.4 billion baht ($70.9 million) in damages, lawyer Sittiporn Lelanapasak said. The plaintiffs allege that CP's actions linked to the import of the invasive species created environmental damage, diminishing the ecosystem that subsequently negatively impacted the fishermen livelihoods CP Foods denies the allegations. "The company's operations are not the source of the issues determination of the company's guilt or liability will be made after thorough examination of the evidence in court," it said in a statement. The court accepting the class action was seen as a positive sign and could encourage legal action from other farmers, Sittiporn said. The company's shares were down 2.08% against a benchmark drop of 0.90%. (Reporting Chayut Setboonsarng; Editing by Angus MacSwan)
Reuters
04-03-2025
- Business
- Reuters
Thai lawsuit targets Charoen Pokphand Foods over invasive fish impact
BANGKOK, March 4 (Reuters) - A Thai court on Tuesday accepted a class action lawsuit against food giant Charoen Pokphand Foods ( opens new tab for causing environmental damage from the rapid spread of an invasive fish species, a lawyer for the plaintiffs told Reuters. CP Foods is part of agro-industrial conglomerate Charoen Pokphand Group, which owns the country's second-largest mobile network and largest convenience store operator. The case is being brought by 10 fishermen from Samut Songkhram, a province by the Gulf of Thailand, known for its fishing industry. The class action, a rare legal procedure in Thailand, centres around the blackchin tilapia, a fish native to West Africa, which was brought to Thailand a decade ago. They prey on shrimp and snail, disrupting Thai aquaculture industry and native ecosystems. The action is seeking 2.4 billion baht ($70.9 million) in damages, lawyer Sittiporn Lelanapasak said. The plaintiffs allege that CP's actions linked to the import of the invasive species created environmental damage, diminishing the ecosystem that subsequently negatively impacted the fishermen livelihoods CP Foods denies the allegations. "The company's operations are not the source of the issues determination of the company's guilt or liability will be made after thorough examination of the evidence in court," it said in a statement. The court accepting the class action was seen as a positive sign and could encourage legal action from other farmers, Sittiporn said. The company's shares were down 2.08% against a benchmark (.SETI), opens new tab drop of 0.90%.
