CHAROEN Pokphand Foods Plc (CPF) has bought 40 per cent of a Brazilian shrimp farming and processing company, Camanor Produtos Marinhos Ltda, in a move that expands its business in the high-growth market.
Adirek Sripratak, chairman of the executive committee at CPF, said the company agreed to buy 4,666,667 newly issued ordinary shares in Camanor, representing 40 per cent of the total capital stock, for US$17.5 million. The deal is expected to be completed within a month of the signing of the investment agreement.
Camanor engages in shrimp farming and primary processing businesses in Brazil. Its main products include fresh and frozen processed shrimp distributed through domestic wholesalers and via exports to markets such as France. It has also developed its own shrimp farming technology known as AquaScience?, which is a closed operating system that enables shrimp to be raised in a high density environment without the use of chemicals or antibiotics. This results in a high productivity rate per farm area.
“This is a synergistic investment that will strengthen CPF’s competitiveness in the shrimp business in terms of feed production, genetics improvement and shrimp-processing capacity under the company’s vision ‘Kitchen of the World’ by applying Camanor’s experience in shrimp farming technology and CPF’s expertise in shrimp genetics,” Adirek said.
Adirek said the new partnership in Brazil would benefit CPF by extending its businesses into areas such as feed and hatcheries.
The expansion is aimed at serving the shrimp industry and boosting local consumption, Adirek said. The company’s total capacity in shrimp production averages about 100,000 tonnes a year, which is not enough to meet domestic demand.
Brazil is a major source of agricultural materials required for the production of shrimp feed and is also a high value market with a large population and economy. It will also provide geographic diversification for CPF in its shrimp production operations.
CPF’s share price yesterday closed at Bt23.60, up 0.85 per cent.