THURSDAY, March 28, 2024
nationthailand

CP Foods untroubled by rising price of US soybean

CP Foods untroubled by rising price of US soybean

Charoen Pokphand Foods (CP Foods) insists its feed operation is unlikely to be affected by the 7-per-cent rise in US soybean prices.

CP Foods CEO Prasit Boondoungprasert said soybean is not the main raw material in CP’s animal feed, and the the company has stocks of soybean to last through early 2021.
Meanwhile US soybean prices are expected to drop in the first quarter of 2021 as new cultivation begins and demand from China’s big buyers drops.
“Due to the Covid-19 outbreak, CP Foods is well prepared in terms of imported supplies, especially feed materials which must be pre-ordered and sourced sustainably. In addition, shipping costs have dropped significantly thanks to falling fuel prices, resulting in better cost management,” said Prasit.
CP Foods added that Thailand’s pork production is unlikely to be damaged by the outbreak of PRRS (porcine reproductive and respiratory syndrome) in the border provinces of Tak and Mae Hong Son. It is confident that the Department of Livestock Development plus strong biosecurity at large pig farms and will control the outbreak effectively. Consequently, the company predicts that domestic pork prices will remain high.
Pork prices in export markets Vietnam and China are also on the rise, which would help CP foods achieve its targets, it added.

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