Charoen Pokphand Foods Public Company Limited - statistics & facts
1978 marked the first chapter of Charoen Pokphand Foods PCL (CPF). CPF is an agriculture leg of the Charoen Pokphand Group, which was originally founded in 1921; the group also owns the 7-Eleven chain in Thailand. Commenced as an animal feed and farming business, CPF has grown into an agri-food conglomerate. Over the years, its operations have spanned across the globe, and it has become one of the biggest feed producers in the world. Furthermore, the company has a significant presence in producing poultry, pork, seafood, and other food products. Therefore, exposure to food products with the CP logo is almost inevitable in Thailand.
Since 2021, the company has faced soaring costs of animal feed, energy, and transportation, as well as currency fluctuations. CPF weathers the storm by increasing prices and taking advantage of the weak Thai baht to export more products, answering food security concerns worldwide. However, in 2023, as one of the largest pig raisers, CPF was gravely impacted by illegal pork being smuggled into Thailand. The company’s sales prices tanked while it still bore high feed costs. Nevertheless, despite incurring a net loss of 5.2 billion Thai baht in 2023, CPF still ranked fifth by revenue among the listed companies on the Stock Exchange of Thailand as of April 2024.
Business structure of CPF
Headquartered in Thailand, Charoen Pokphand Foods PCL (CPF) aspires to be the “kitchen of the world,” bundling its competencies in core businesses, including animal feed production, livestock farming, aquaculture, and food processing. The company has a comprehensive supply chain involvement. Livestock and aquaculture are the two segments of the company, which can be distributed into the three main business lines: feed, food, and farming. CPF’s feed business covers the sourcing of raw materials, manufacturing, and the distribution of animal feed. On the other hand, the farming business partakes primarily in breeding and farming for commercial purposes. The company’s food business segment handles the processing and production of fresh and cooked food products, as well as ready-to-eat meals. Livestock operations include chicken broilers, chicken layers, ducks, and swine. In aquaculture, the two main marine animals are shrimp and fish. This all-round business model allows the company to deliver from animal feed to food processing. Domestic sales made up 32 percent of the company’s revenue in 2023; meanwhile, nearly two-thirds came from overseas operations, with countries in Asia such as China and Vietnam at the head.Since 2021, the company has faced soaring costs of animal feed, energy, and transportation, as well as currency fluctuations. CPF weathers the storm by increasing prices and taking advantage of the weak Thai baht to export more products, answering food security concerns worldwide. However, in 2023, as one of the largest pig raisers, CPF was gravely impacted by illegal pork being smuggled into Thailand. The company’s sales prices tanked while it still bore high feed costs. Nevertheless, despite incurring a net loss of 5.2 billion Thai baht in 2023, CPF still ranked fifth by revenue among the listed companies on the Stock Exchange of Thailand as of April 2024.
