Bangkok--6 Jul--CPF
Mr. Adirek Sripratak, President and CEO of Charoen Pokphand Foods Public Company Limited, said that the Company’s Board of Directors resolved to establish Charoen Pokphand Foods (Overseas) LLC., in the third quarter of 2006 to operate animal feed and animal farming businesses in Russia, where there are high demand in meat products consumption.
Mr. Adirek also mentioned that Russia is one of the fastest moving markets. We have researched for a while and found out the animal farming, especially swine, has an opportunity to grow because Russia has population over 140 million, in which they consume approximately 2-2.5 tons of pork as much as chicken. However, Russian meat producers cannot currently supply country’s consumption so they need to import meats from other countries. As a result, CPF decided to invest by initially producing livestock feed, followed by swine business operation that will benefit our overall business expansion.
CPF Europe S.A., a subsidiary which 99.99% interest indirectly owned by CPF, will invest in the new subsidiary in Russia. The registered capital of this new subsidiary will be 220 million Russian ruble or equivalent to approximately 310 million baht (calculated at the foreign exchange selling rates (Financial Times) with Bangkok market crossing as of July 3, 2006 which is 1.4088 baht per Russian ruble).