Patum Rice Mill to diversify as Kingdom's rice trade contracts
The impacts of the government's rice-pledging project have prompted Thailand's leading rice packer to diversify into property and other food-related businesses.
Somkiat Makcayathorn, managing director of Patum Rice Mill & Granary, producer of the well-known Mah Boon Krong Rice brand, said income from the company’s rice-packing unit had fallen considerably during the past year because of rising rice prices and increased competition.
"The company will diversify to focus more on other businesses including property, and snack and soup production. However, we will not leave the rice-packing industry, as it is still one of the firm’s core businesses," Somkiat said.
The rice unit’s income from overseas sales declined by about 20 per cent this year to Bt1.6 billion from Bt2 billion last year, he said. Overall Thai rice exports dropped by 40.54 per cent to 4.83 million tonnes between January 1 and December 18.
The company’s domestic sales have fallen 2 per cent, compared with a 7-per-cent contraction in the Kingdom’s rice market.
Somkiat said that because of lower-than-expected income from rice trading, the company would sell some of its rice-related businesses – including electricity plants, a rice-bran production plant, rice milling operations and a rice-flour factory in Pathum Thani province – to concentrate on growing its property business.
Next year, the company will also focus more on manufacturing of snacks, soups and other foods to ensure business growth, he said.
