A second investment of Bt700 million will focus on constructing a fourth rice-processing plant, also with a capacity of 500,000 tonnes per year. The plan will start in 2009 and end in 2010.

CEO Prasit Damrongchietanon said the company had to expand, in order to meet demand locally and abroad. Exports should reach a million tonnes after its new Ayutthaya plant is completed in the middle of next year.

CP Intertrade's current two plants are in Pathum Thani and Ayutthaya, with combined production of 400,000 tonnes a year.

Rice trading accounts for 80 per cent of its revenues. The rest comes from logistics services and sales of other products, such as sauces, spices, seasonings, processed foods, ready-to-eat meals, confectioneries, plastic table sets, furniture, Thai handicrafts and body-care products.

The company also holds a majority stake in three transportation firms. These are Dynamic Intertransport, a professional freight forwarder that handles both sea and air freight, with more than 20,000 20-foot equivalent units of sea cargo a year; Dynamic Intermaritime, a ship broker and agency providing worldwide services; and Dynamic Transport, its own fleet of carriers handling more than 3,000 vehicles and 500,000 journeys each year.

CP Intertrade recorded sales of Bt10 billion last year, up 30 per cent from 2005. Of that, Bt6 billion came from exports and Bt4 billion from the domestic market.

Prasit said the company expected sales growth this year of 20 per cent, or Bt12 billion, with exports providing Bt7 billion and the domestic market Bt5 billion.

"The baht's appreciation has had less of a negative impact on our export market, because we export quality rice under our brand. It is a different approach from other rice exporters, who focus on bulk," Prasit said.

One benefit of its brand identity and premium product is that it is negotiating to increase its rice price in terms of US dollars, to balance the baht's appreciation, he said. "Some of our customers understand our situation and are willing to accept a price increase to match the baht's appreciation, while some customers don't want to pay in terms of dollars at a price more than before the baht strengthened. However, we are trying to expand and negotiating with them to accept the new price," Prasit said.

With its marketing strategy to build its brand and negotiating with customers to increase its rice price, the company recorded exports worth US$20 million (Bt700 million) in the first two months of this year.

This was an increase of 15 per cent year on year in terms of dollars and growth of nearly 10 per cent in terms of baht.