CPF puts more focus on R&D

Agriculture conglomerate Charoen Pokphand Foods (CPF) is placing more emphasis on research and development of food products and processing, with the focus on the "farm-to-table" strategy.
The company hopes this will help it become more global. It already has R&D centres at some of its feed-meal, animal and food-processing plants. President and chief executive Adirek Sripratak said last week that following the company's successful regional expansion, its sights were now firmly on R&D. It spends an average of Bt2 billion a year on R&D - about 2 per cent of sales revenue. The company spent millions last year on its Klang, Rayong, shrimp R&D centre. The modern facility, which employs 30 people, is the only one in Southeast Asia dedicated to shrimp. At a recent meeting with the company, Industry Minister Kosit Panpiemras said R&D would create new, innovative products to drive national economic growth. Kosit said CPF was eligible for Board of Investment tax incentives. Adirek said the company would expand R&D at its Saraburi plant focusing on food, especially chicken. The Min Buri plant will concentrate on ready-to-eat meals. The company is also cross-breeding pigs to develop a leaner breed. Vice president for marketing Suphat Sritanatorn said the Saraburi research centre had 50 staff, including nutritionists, chefs and packaging developers. "The centre will create prototype products that can be developed commercially," he said. It averages 100 new ideas a year and about eight of those make it to supermarket shelves. The company could lower this year's revenue forecast to Bt130 billion from Bt140 billion as a result of the economic slow-down, the stronger baht, bird flu and a fall in pork prices.
Achara Pongvutitham The Nation
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