Toronto, Jan 22, 2021 – Charoen Pokphand Foods Public Company Limited is Thailand’s largest agribusiness. It is a listed subsidiary of Charoen Pokphand Group. Charoen Pokphand Foods Public Company Limited (CPF), a subsidiary of CP Group, is Thailand’s leading agricultural industry and food group.
Charoen Pokphand Foods Group was founded in 1921 and currently has offices and factories around the world, with more than 300,000 employees. Most of Charoen Pokphand Foods production bases are in Thailand, some of which operate overseas. The company’s core business is livestock and aquaculture.
Approximately 64% of Charoen Pokphand Foods revenue comes from overseas operations, of which 30% comes from the local market in Thailand, and 6% comes from export operations. It recently acquired Bellisio Foods, one of the largest frozen food suppliers in the United States, for $1 billion, and Westbridge Foods, a major British poultry producer with a turnover of more than 340 million pounds.
Covid-19, the global aquaculture and fishery industry, and Charoen Pokphand Foods
Due to the devastating impact of COVID-19 on the aquaculture industry, the market is expected to lose momentum by 2027 and then return to the estimated global market size of 245.1 billion US dollars. Governments around the world have adopted strict blockade measures to control the spread of the pandemic, shadowing food and nutrition security. As the government quickly adopted measures to impose trade restrictions to protect domestic food supplies, the global food supply chain has been severely disrupted. This move has and will continue to affect countries that rely on food imports.
The fish and aquatic food value chain currently faces a variety of challenges, including closures, changing consumer needs, market access and logistics issues, and transportation and border restrictions. The fishing fleets were tied together as part of the restrictive measures, which adversely affected commercial fishing, which is an important part of the global food system.
Charoen Pokphand Foods announced its sustainable development strategy and goals, emphasizing food safety and circular economy-based operations. These operations require more renewable energy consumption, less disposable plastic use, and less food loss and waste, less greenhouse gas emissions and material procurement from certified suppliers.
The closure of restaurants and restaurants representing bulk buyers of fish and seafood has greatly affected sales. Lower demand, setbacks in exports and higher operating costs are eroding the profit margins of fishery and seafood companies.
Supply chain disruptions and Charoen Pokphand Foods
As an integrated agro-industrial and food business that are concerned with social and environmental responsibility as well as food security for Thailand and the globe, Charoen Pokphand Foods will apply the circular economy concept throughout the value chain. Charoen Pokphand Foods is convinced that the concept will prepare the Company for global trends, business challenges and stakeholders’ expectations.
Supply chain disruptions due to transportation, trade and labor disruptions have brought the aquaculture industry to a halt. Delayed inventories of aquaculture feed and systems are affecting production, and price increases may become a key consequence.
The value chain of fish and fish products is labor-intensive, and all the factors discussed above are affecting the food security and nutrition of people who rely on fish for animal protein and essential micronutrients. Unless immediate corrective measures and policy changes are taken, under the current circumstances, seafood will become an important part of the food security goal and cannot be afforded by the poor.
Announced the sustainable development strategy and goals to be achieved in 2030. The focus is on the promotion of renewable energy, energy efficiency, the procurement of traceable materials, sustainable production processes, the reduction of food loss and waste, and the reduction of the use of disposable plastics. Mitigating the impact of climate change.
Charoen Pokphand Foods investment in China aquaculture industry
China is the world’s largest market. It is expected that in the next few years, developing countries such as India, Indonesia, and Vietnam will increase their status as major contributors to aquaculture production. The reasons include improved living standards and increased per capita consumption of seafood; establishment of new fish farms.
For export production, China provides large-scale government programs and support large-scale investment in aquaculture and fisheries, as well as increasing awareness of fish health, reproduction and management; strict regulations on marine fishing and combating destructive fishing and subsequent aquaculture Increased investment in breeding.