March 1, 2011
CPF mulls price increase on rising costs
Charoen Pokphand Foods mulls over increasing the price of its products following a recent surge in animal feed prices.
The firm''s top executive also voiced concern over pressures on global oil prices, which are rising as a result of the crisis in Libya.
President and CEO of Charoen Pokphand Foods, or CPF, Adirek Sripratak said his company may have to increase the prices of their products to keep up with rising costs.
He noted that the price of animal feed climbed 10% recently following a global surge in the price of agricultural products as a result of climate change.
Adirek expressed his views that the political turmoil in Libya should not affect the firm''s exports, as it is not trading with the African nation.
He said CPF''s key markets are the US, Japan and European and Asian countries.
In the Middle East, Bahrain and Dubai are its major trading partners.
However, he voiced concern over escalating oil prices, which could reach 140 to THB150 (US$4.91) a barrel if the crisis in Libya is not resolved soon.
Increased oil prices will have a large impact on logistics and, hence, the price of goods.
The top executive also ruled out the impact of border disputes between Thailand and Cambodia on the firm''s business, saying that the Cambodian government is very concerned about food shortages in the nation and thus extensively supports the food industry. Adirek, meanwhile, expects the company''s sales to grow between 10-15% this year.
In 2010,
CPFgenerated nearly THB190 billion (US$6.22 billion) in
revenue and THB13.5 billion (US$0.44 billion) in net profit, a 33% increase from the previous year.
The food producer is planning to expand in eleven countries including India, Russia, Tanzania, as well as make further investment worth THB500 million (US$16.36 million) in animal feed projects.