CPF sharpens 'green' focus

Charoen Pokphand Foods will spend between Bt500 million and Bt1 billion on “green” technologies and machinery in the next three years as part of the company’s strategy to develop an environment-friendly business, president and chief executive officer Adirek Sripratak said yesterday.

More than Bt3 billion has been already invested in environment-friendly initiatives covering all major parts of the business, from the feed, farm and food businesses through to logistics and retail distribution, he said. 

Many green projects are being enhanced by CPF, including those involving co-generation, biogas, biodiesel and the attachment of the “Carbon Label” on its products. 

The company has also recently adopted the “CPF Green Farm Standard”, to be achieved by its contracted farmers, he added.

“There are more than 7 billion people in the world today. The increase in the global population leads to an extreme limitation of resources and a strong impact on the environment. Many businesses around the world are tending to attach greater concern to environmental issues and put them into their business policy,” Adirek said.

He said CPF had also elevated its green business initiative as a key policy aimed at promoting sustainable long-term growth, both in its agricultural and food businesses. The move is in line with the company’s “kitchen of the world” vision.

“Our strategy is to run business responsibly, which will be done through an environment-friendly policy,” said the company chief. CPF is applying three green strategies: protection of the environment and reduction of environmental impacts; encouraging the use of environment-friendly initiatives and technologies in its manufacturing process; and introducing those technologies to farmers and trade partners.

Meanwhile, Adirek sees a tendency for price increases in agricultural products in the medium to long term, which is in line with the government’s policy to raise the price of farm products and the incomes of farmers, who still account for the largest portion of the population.

“We estimate a trend for food prices to increase by between 5 and 10 per cent this year, in line with higher costs. The reduction of fuel prices at this time will, however, [only] be for the short term,” he said.

CPF expects turnover of more than Bt300 billion this year, of which more than 50 per cent will be from international investments and more than 40 per cent from domestic sales. About Bt30 billion will be from exports, of which between Bt6 billion and Bt7 billion will be generated by sales to European markets.

Regarding the Asean Economic Community, which comes into effect in 2015, Adirek said CPF had prepared in advance to cope with upcoming trade liberalisation.

“We have been investing in most Asean markets for almost 20 years,” he noted, adding that the company’s strategy was direct investment to serve domestic demand in the countries where it operates.