October 8, 2010
Betagro eyes export sales markets in East and South Asia
Thailand''s second biggest agribusiness conglomerate, Betagro Group, is planning to capture more export markets by placing its focus on East and South Asia, foreseeing development ''from farm-to-fork'' and technology exports.
Despite a conservative management style, investment and export are part of its vision as it foresees business expansion. It has also identified a need in South Asia, particularly India, Bangladesh and Sri Lanka, for development of farming and processing technology, which matches the company''s expertise.
Nopporn Vayuchote, executive vice president for group business development, explained that the company has a three-year plan for investment abroad, to be implemented from 2011 to 2014. The company already exports products to Indochina as well as the Asean region but not yet in a major way.
Nopporn said that the company was considering its overseas investment strategy cautiously, as to whether the best practice should be through joint ventures, partnerships or wholly-owned companies.
The business will focus on exporting knowledge and gain access to these markets in the future, adding that the company had developed technology that could increase the local supply of quality meat in those countries that they currently have to import.
Nopporn pointed out that the group had focused its strength not on its competitors but on customer demand to boost business overseas.
The group''s business has mainly focused on the domestic market, accounting for 80% of its total sales. However, annual growth of the domestic market is only slight, at 23%, and prices are unstable. Export markets will create extra income, and rising demand for agricultural goods affected by global warming will create export opportunities.
The company''s total sales are set to reach THB55 billion (US$1.82 billion) this year as it sustains annual growth of 10-15%, according to reports.
Despite the stronger baht, the company has not adjusted its business structure much, as it gains from import of raw materials such as soymeal and its small export ratio.
The group also plans to increase pork exports by 20% to 10,000 tonnes next year, making the company the country''s biggest pork exporter.