Charoen Pokphand Foods PCL (CPF) has recently acquired 40 per cent of the shares worth US$17.5 million in Camanor Produtos Marinhos Ltd, one of a leading shrimp farming and processors in Brazil to further expand the business into the high-growth Latin American market.
Adirek Sripratak, chairman of the executive committee at CPF, said the company agreed to purchase 4,666,667 newly issued ordinary shares representing 40 per cent of total capital stock of Camanor worth US$17.5 million (TB547 million). The deal was expected to be completed within one month after the investment agreement was signed, he said.
Camanor engages in shrimp farming and primary processing businesses in Brazil. Its main products include fresh and frozen-processed shrimp distributing through domestic wholesalers and exported to countries like France. It has also developed and owns shrimp-farming technology called AquaScience®, which is a close operating system raising shrimp in a high-density environment without using chemicals or antibiotics, resulting in high productivity per hectare.
“It is the synergy investment which will strengthen CPF’s competitiveness in the shrimp business in terms of feed production, genetic improvement and shrimp-processing capacity through the company’s ‘Kitchen of the World’ programme by applying Camanor’s experience in shrimp-farming technology and CPF expertise in shrimp genetics,” Adirek said.
Adirek added that the new partnership in Brazil would benefit CPF by extending its business into feed and hatchery.
The expansion was drawn up to serve the shrimp industry and Thai consumption, he said. Its total shrimp capacity reaches an average of 100,000 tonnes per 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 potential market with a sizable population and economy.
The deal would also provide geographical diversification for CPF shrimp-production operations, Adirek added.