CP LAOS, a subsidiary of Thailand’s listed Charoen Pokphand Foods, is set to increase pig-breeding stocks at commercial piggeries in Laos from some 7,000 to more than 12,000 this year in order to boost the number of piglets.
The move reflects increasing demand in Vientiane.
This expansion should see the number of piglets born increasing from 160,000 to 260,000, said senior deputy manager Thamnong Phonthongmak. It would allow CP Laos to provide some 50 per cent of market demand nationwide, he added.
Established nine years ago, the company has posted an average annual growth of 20 per cent. More than 100 farmers in Vientiane as well as in the provinces of Savannakhet, Champasak and Khammuan have joined CP’s contract-farming arrangements.
Under the contract, the company takes control of breeding management while farmers remain on their farms.
He noted that the company plans to expand its business into food processing by starting with the development of a pork-separation facility.
When compared to Thailand, however, Laos is a small market with a population of about 7 million and most areas are mountainous and difficult to reach, Thamnong said.
Most people rely mainly on goods and processed foods from neigbouring countries, hence a local business operation needs a suitable and proper location so as to reduce transport costs.
Thamnong said the company would opt for big cities like Vientiane and Champassak as its main production bases and distribution hub to other provinces.
CP Laos also plans to increase animal feed production from 100,000 tonnes to 140,000 tonnes per year in response to rising market demand by upgrading the machineries at the production plant in Xaythany district, Vientiane.
Source: The Nation