CP Trading Group sets up rice hub in Autthaya

The master plan for the project, which will cover 600 rai (96 hectares), is scheduled for completion in 10 years.
The second phase will see the establishment of CP’s first rice industrial estate, including an inland container depot, a warehouse, a fertiliser plant, and a rice-bran-oil factory. It will also produce instant noodles, rice snacks and rice beverages.
The first phase of the project has been completed on a nearby area of 270 rai on an investment of Bt4 billion. This part of the project included a rice-processing plant, a silo and a pier.
The company has selected rice farmers who belong to agricultural cooperatives in targeted provinces to join in its special project.
The plan is to consolidate rice plantations to cover at least 200 rai and to implement advanced technology. This will encourage participating farmers to engage more in multi-function agricultural systems to make them more competitive. Farmers joining the project will learn how to modernise their farms to reduce production costs, increase yield and select the right crops for the right environment.
A model farm was launched three years ago in Kamphaeng Phet.
The goal of this project is to make CP Trading an integrated producer, manufacturer, trader, logistics provider and exporter of rice.
Sumeth Laomoraphorn, chief executive officer for rice and food business, said CP Trading Group foresaw its long-term business operation through sustainable development. It aims to do this by achieving and maintaining high standards in all aspects of its operations.
He said the first phase of the project aimed not only to increase the company’s production capacity to 1.5 million tonnes per year but also to prepare for the seamless trade through the Asean Economic Community that will take effect in 2015.
The company’s current annual rice-production capacity is more than 1.08 million tonnes, of which 80 per cent is for export to 120 countries worldwide. Silo capacity is 83,600 tonnes per year.
CP Trading is selecting farmers with good performance records to participate in its rice-plantation consolidation. However, it is also being selective about plantation areas.
As the biggest rice trader in the domestic market, the company estimates total domestic volume of 320,000 tonnes this year. It is also one of the top five exporters, with volume of 600,000 tonnes this year, down by 15 per cent from last year. However, it projects that total domestic sales will reach 400,000 tonnes and export 700,000 tonnes next year.