The Betagro Group, one of Thailand's top five meat processors and exporters, is preparing for major expansion with a Bt1.5billion plan to establish slaughterhouses and processing plants for pork and chicken in all parts of the coun?try within the next three years.
The plan is designed to ensure the group's sales grow an average of 1520 per cent per year. Betagro's regional and feed businesses are expected to gen?erate sales of Bt29 billion this year compared with Bt27 bil?lion in 2009.
The livestock business is growing in every part of the country, particularly in the South and the Northeast. The group plans the provide highquality meat to serve rising market demand.
The senior vice president of Betagro's regional and feed business, Narongchai Srisantisaeng, said the expan?sion plan included the estab?lishment of at least five slaugh?terhouses for pigs and three processing plants for chickens. Investment in the slaughter?houses is expected to reach Bt90 million each, while fur?ther chickenproducts plants will cost Bt95 million each.
Two of the slaughterhouses will be in the Northeast, at Khon Kaen and either Surin or Si Sa Ket, depending on which proves to show the highest potential. Another two will be in the South - one at Phatthalung and another at a yettobenamed location on the Andaman coast.
So far, Betagro has three slaughterhouses operating at Khon Kaen, Phatthalung and Mae Jo in Chiang Mai province, each with a capacity of 240 pigs per eighthour day. This group of slaughterhouses is able to double its capacity by working two shifts per day, Narongchai said.
The group is planning to set up chickenprocessing plants in the North, South and Northeast. Its first processing plant will be in the South, at Hat Yai in Songkhla province, with a capacity of 40,000 birds per day. The plant is expected to start test runs within 11 months.
Narongchai said the group also planned to expand its number of "Betagro Shop" retail outlets from 47 to 55 through?out the country during the threeyear expansion pro?gramme.
"Our business in the South is the most active because people there have high income. However, the 19 provinces of the Northeast are also interesting, with high growth potential," he said.
Betagro's investment plans in the South, including two pig slaughterhouses and one chick?enprocessing plant, will lead this region's business group to achieve sales of Bt6 billion by 2012, up 20 per cent from last year, he said.
To serve rising demand in the region, the group plans to open three new retail shops.
Demand for pork in the South has reached 160,000 pigs per month, he said. Of that, Betagro's production accounts for only 5,500 pigs. Despite the region's predominantly Muslim population, pork consumption per head is the highest in the country, at 22 kilograms per year, compared with the nation?al average of 13 kilograms.
Narongchai said Betagro's production mainly focused on foodservice businesses, accounting for 60 per cent of its total capacity. Retail markets accounted for 30 per cent and small shops the rest.
The group has undertaken a contractfarming strategy to ensure its rawmaterial sup?plies. In particular, it breeds parent stock of both pigs and chickens to ensure that farmers produce highquality stock.
"Highquality breeding stock will ensure that the group produces highquality meat. We want to sell meat rather than live animals in the future," Narongchai said.
Part of Betagro's investment plan is to set up two new feed meal plants, making a total of 10 plants throughout the coun?try and lifting its production to 2.5 million tonnes per year.
The group is also studying investment opportunities to establish livestock farms in neighbouring countries includ?ing Laos, Cambodia and Burma. At present the group's operation in Laos imports feed meal from its Thailand parent operation to sell locally.
Betagro is planning to create "parent farms", each with 1,000 pigs, in Laos and Cambodia. It is looking for local partners to smooth business operations in each country.