CP Foods Untroubled on Rising Price of US Soybean

Mr. Prasit Boondoungprasert.
Mr. Prasit Boondoungprasert.

Mr. Prasit Boondoungprasert, Chief Executive Officer of Charoen Pokphand Foods PCL (CP Foods) announced that the company’s feed operation is unlikely to be affected by higher US soybean prices, which increased by 7%.

He reasons that soybean is not the main raw material for the company’s animal feed. Moreover, the company has well managed stockpile through early 2021.

The US soybean prices are expected to drop in Q1/2021 as the new cultivation is around the corner and China’s heavy buyer has stopped.

“Due to COVID-19 outbreak, CP Foods has been very well prepared on importing of supplies, especially feed materials that must be pre-ordered and sourced sustainably. In addition, shipping costs were also significantly declined thanks to dropped fuel prices. This resulted in better cost management,” said Mr. Prasit.

CP Foods also reassures that Thailand’s pork production is unlikely to be damaged by the outbreak of PRRS, which occurred at the border. It confidents that a strong biosecurity system at large- size swine farms and Thailand Department of Livestock Development (DLD) will manage to control the outbreak effectively. Therefore, the company predicts that domestic pork price to remain high.

Externally, pork prices in Vietnam and China tend to increase, resulting by overall high pork price. This will encourage CP Foods to grow steady, achieving its target.