Charoen Pokphand Foods

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Charoen Pokphand Foods PLC
Public
Traded as SETCPF
Industry Food and Beverage
Founded January 17, 1978 (1978-01-17)
Founder Dhanin Chearavanont
Headquarters Bangkok, Thailand
Key people
Adirek Sripratak (CEO)
Products Animal Feed, Animal Breeder,
Meat and Food
Revenue IncreaseUS$13.74 billion (2014) [1]
Parent Charoen Pokphand Group
Website www.cpfworldwide.com

Charoen Pokphand Foods Public Company Limited (CPF), a company of the Charoen Pokphand Group, is an agro-industrial and food conglomerate in Thailand. The greater part of the company production bases is in Thailand with some operations overseas.

The company's core business lines are livestock and aquaculture. Livestock operations include chicken broilers, chicken layers, ducks, and swine. In aquaculture, the two main marine animals are shrimp and fish.

Operations[edit]

Livestock[edit]

The livestock business covers broilers, layers, swine, and ducks. Products can be divided into three main categories, animal feed, animal breeders, and meat and food products.

Animal feed[edit]

The company produces livestock feed in the forms of concentrate, powder and pellets for broilers, layers, swine, and ducks. The feed is distributed by more than 600 sales representatives throughout the country. A portion of the livestock feed is sold directly to large animal farms in Thailand.

Animal breeding[edit]

The company researches and develops natural animal breeds. The goal is to obtain quality breeds that are disease-free, suitable to the breeding environment in Thailand. The company produces parent stock broiler chicks, parent stock layer chicks, parent stock swine, broiler chicks, layer chicks, layers and piglets for distribution to animal farms and domestic sales representatives.

Grandparent stock used in livestock breeding are imported from abroad to breed parent stock which are then raised on the company's farms.

Meat and food products[edit]

Products in this category can be further divided according to two types of production process, namely animal farming for commercial purposes and processing and manufacture of cooked food products.

Animal farming for commercial purposes[edit]

Products from animal farming for commercial purposes include live chicken, eggs, live ducks and live swine which are distributed to sales representatives throughout the country. The products are also distributed in surrounding local areas, to wholesalers and retailers, or to the company's processing plants or other processing plants in Thailand. The selling prices fluctuate according to domestic demand and supply.

The company has offices across the country, which act as centers for technical information to farmers on how to properly raise animals to obtain fast growth as well as assistance with marketing and distribution.

The company has a support program for the farming of swine and broilers. The company selects farmers who have their own farm and farming equipment. Selected farmers receive support in the areas of animal breeds, animal feed, medication, and farming knowledge from the company.

The company then undertakes to purchase all yield which meets the CPF standards.

Processing and manufacture of cooked food products[edit]

Broilers, ducks and swine from the company's farms are brought to processing plants to be cut into meat parts according to customer specifications. The meat parts are then packaged, frozen, and distributed as chilled and frozen meat products to wholesalers, domestic retailers and importers in various countries. The company adds value to processed meat products by flavoring and cooking through the process of boiling, steaming, frying, baking and grilling according to customer specifications. Export products are distributed through importers in various countries, mainly countries in the European Union, Japan, and Asian countries.

Aquaculture[edit]

The aquaculture business includes mainly shrimp and some fish. The products can be classified into three main categories, animal feed, animal breeders, and meat and food products.

Animal feed[edit]

The company produces and distributes aquatic feed, with the main product being shrimp feed. Aquatic feed is produced in the forms of concentrate, powder and pellets and distributed through sales representatives who are in shrimp farming areas throughout the country. Agricultural products such as soybean meal, fish meal, and wheat flour are used in the production of aquatic feed.

Aquatic breeders[edit]

Shrimp culture farms and hatcheries[edit]

Following the company's policy of supporting sustained growth and development in the shrimp industry, the company has developed quality shrimp fry to distribute to farmers, which will increase their opportunity to successfully farm shrimp. In 2004, the company entered into a joint venture with an American company with shrimp breeding expertise to develop shrimp fry that are suitable to for farming conditions in Thailand. The company's culture farms and hatcheries are in the shrimp farming areas in the eastern and southern regions of Thailand.

Fish culture farms and hatcheries[edit]

The company has developed fish breeds to distribute to farmers, including tabtim fish fry, developed from tilapia fish. In 2006, the company also succeeded in developing the morakot fish breed type, which was developed from bassar fish.

Meat and food products[edit]

Products in this category can be further divided according to two types of production process, namely animal shrimp and fish farming for commercial purposes and processing and manufacture of cooked food products. Details are as follows:

Farming for commercial purposes[edit]

The company realizes the importance of traceability which has prompted the company to expand its shrimp farming business, resulting in fully integrated operations that produce high quality for the company's processing plants as well as other processing plants in Thailand. In the management of the company's shrimp farms, research and development and technology are applied to find ways to prevent the outbreak of disease in shrimp and farming methods, which are friendly to the environment and do not cause residue build-up. The company promotes "probiotic farming" which avoids the use of drugs and chemicals.

Processing and manufacture of cooked food products[edit]

Products derived from processing are one of the important products in the meat and food products category of the aquaculture business. The main products are processed fresh shrimp and value-added processed shrimp, most of which are produced for export as chilled and frozen products and distributed through importers in various countries. The selling prices fluctuate according to demand and supply in the country and the world market. The selling prices are also determined by agreement if the products have been manufactured according to customer specifications. Furthermore, The company has added value to processed shrimp, producing ready to eat cooked food products.

Slavery allegations[edit]

In June 2014, after a several-month-long investigation, the British newspaper The Guardian claimed that Charoen Pokphand (CP) Foods purchases fishmeal, which it then feeds to its farmed prawns, from suppliers that own, operate or buy from fishing boats manned with slaves. The Guardian claimed that after the slaves are bought "for as little as £250", the working conditions on those boats included forced labor with 20-hour work days, forced drug use, starvation, and executions.[1]

Six days after the article was published, the chairman of Charoen Pokphand posted his response on the English version of their homepage,[2] promising to stop purchasing from suppliers suspected of involvement with human trafficking or slavery and announcing an audit programme that would involve independent NGOs.

In July 2014, CP Foods hosted a three-day meeting to create a task force on the issue, with representatives from retailers, local government authorities and non governmental organisations such as Oxfam and the Environmental Justice Foundation.[3] The progress made at this meeting is difficult to ascertain, as the original newspaper, The Guardian, has not posted any additional stories and the company website's sustainability page[4] says "For the latest general update covering our approach and achievements" to read a page from December 2013, which promises "a further progress update in Q1 2014."[5]

In Australia, two food retail chains, Independent Grocers Of Australia ("IGA") & Woolworths Ltd refuse to stock CP Thailand foods. (http://www.sbs.com.au/dateline/story/related/aid/909/id/601981/n/Prawn-Slaves)

References[edit]

  1. ^ Revealed - Asian slave labour producing prawns for supermarkets in US, UK. The Guardian online from June 10, 2014. Retrieved June 11, 2014.
  2. ^ [2]. "CPF condems slavery" online from June 16, 2014. Retrieved November 11, 2014.
  3. ^ [3]. The Guardian online from July 310, 2014. Retrieved November 11, 2014.
  4. ^ [4]. "CPF sustainability." Retrieved November 11, 2014.
  5. ^ [5]. "Corporate Sustainability Programme UK Retail Partner Update - December 2013" Retrieved November 11, 2014.
  • Company Report (as of 2007)

External links[edit]