THAIFOODS GROUP (TFG) is stepping up a planned shift into primary and further processing in a bid to thwart risks to its business model from market volatility.
The company is well on its way to recovery after suffering steep losses in recent years, said Cherdsak Kukiattinun, COO.
In fiscal year 2016, the company reported 1.4 billion baht in net profit, which was a big turnaround from the 1.5 billion baht that it lost in 2015. So far in 2017, it has earned 20.7 billion baht, up from 17.5 billion baht during the same period last year.
It has invested in two hog slaughter- houses in Khon Kaen and Chachoengsao and a poultry further processing plant.
With a larger sales force, better market penetration countrywide and favorable chicken prices, TFG expects to report even better earnings in 2017.
Mr Cherdsak said the company plans to establish new distribution depots in 40 strategic markets to increase its accessibility to end users and shore up gross margins.
Hog prices in 2017 have leveled off amid a slump in exports of live animals, but the company still sees opportunity for substantial swine business growth. It plans to leverage additional primary process- ing capacity to reduce risks from price swings. TFG successfully grew its hog business by 20% in 2016. READ MORE