CP Foods sees recovery in pig prices in Vietnam
The group has been active in that market for 25 years, and now counts nine feed mills among its operations in Vietnam, with those plants producing either livestock or fish feed.
Swine prices
In February, the Thai group commented on challenges in its Asian pork business, saying prices had decreased below production costs, especially in Vietnam. However, it already highlighted then that the situation was easing.
Rabobank's recent pork quarterly predicts Vietnam's hog supply could increase 4% YOY to 41.3m hogs this year. The analysts said they expect Vietnam's pork demand to reach 2.7m tons cwt in 2018. It sees continued expansion of industrialized farms in that country.
In an outlook released today, it said the swine price in Vietnam has now rebounded to VND 38,000 (US$1.66) per kilogram from VND 20,000 per kilogram in 2017.
Shrimp export hike
The Vietnamese government’s bid to increase the country’s seafood exports will also support CPF’s activities in that country, said the group. “It is forecast that Vietnamese shrimp exports will increase from 690,000 tons in 2017 to 830,000 tons in 2018 and to 1.14 million tons by 2025. This will make Vietnam one of the largest shrimp producers in the world.”
CPF, which is also in the process of investing in the Brazilian shrimp sector, said it is interested in markets with high growth potential and population size of over 100 million people.
In February, chairman of CPF's executive committee, Adirek Sripratak, noted the company’s operations in its 16 overseas markets contributed to 64% of revenue in 2017, which up from 62% in 2016.
“Vietnam plays a vital role in terms of CPF’s growth, thanks to the domestic consumption demand and its export, which has expanded more than 20% compared to previous year,” noted the report.
Some 60% of Vietnamese population are in the working age bracket and this fact is a huge driver in terms of the country’s economic growth, added CPF.
