CPF sharpens focus abroad for growth

“We are already in 17 countries and Thailand today contributes just 36 per cent of total income,” said Sooksunt Jiumjaiswanglerg, CPF’s chief executive in charge of the ago industrial operations. 
Sooksunt is also one of two co-presidents of CPF, where annual revenue topped Bt478 billion last year.
“In the next three years, CPF is likely to derive 70 per cent of income from abroad with Thailand making up just 30 per cent,” Sooksunt said.
“The company still targets 10 per cent growth a year,” he said of the listed firm, which has a market capitalisation of Bt209 billion.
“Vietnam already contributes 13 per cent of our earnings,” he said, adding it was among the more promising overseas markets.
Sooksunt said India, the Philippines and Russia were also being explored as having high growth potential.
“As for meat exports, the US and Japan remain key markets. The 10-member Asean bloc is also importing more from CPF,” he said.
“We would prefer to grow in Thailand but the market is so saturated that competition is fierce. Every time we make a move, we seem to spark negative media coverage.
“This is why the chairman [Dhanin Chearavanont] and I agree that we should look abroad and not clash or bicker with our rivals.”
But investing overseas is no picnic either, he said. “Starting from scratch in foreign lands involves risks. There is no guarantee we can make a profit for some years,” Sooksunt said.
“At the same time, our chairman insists on following three principles for investing, which says CPF will only invest if we are good for the country, society and our customers and employees there.
“If we do not accomplish serving these segments, we should not be there.”
Sooksunt said corporate social responsibility programmes (CSR) are critical to the company’s success overseas. “All staff must adopt an ethical and moral code of conduct to society and be good, responsible citizens,” he said of the CSR agenda.
“I was among the first CP managers to go to Vietnam with chairman Dhanin 20 years ago and saw the potential. But we had to first build good relations and trust.
“One of the first things we did was to offer maize seeds to the Vietnamese to rapidly improve their industry.
"Today Vietnam is a key market with more than 90 million people. Our relationship is stronger now as Hanoi views CPF as a good partner who has contributed significantly to its economy as well as moral standards.
“We teach our Vietnamese staff it is important to care for parents and grandparents. As a result, our employees take pride in taking elders for a meal or on an outing."
This soft approach has earned the company respect in other markets as well, he said.
In Thailand, CPF is responsible for sponsoring a protein intake programme at about 650 schools countrywide. The company contributes pens for egg-bearing hens as well as other livestock schemes at the schools.
The students are trained to look after the hens and, three times a week, collect the eggs that are served to students in their lunch.
The remaining eggs are sold to raise money for a revolving fund for other initiatives. Since its inception 30 years ago, the programme has imparted farming skills to students as well as commercial and accounting skills.
Students learn at an early age to be responsible for inventory, how to market goods and adopt an honest as well as kind personality that will be critical when they seek careers after leaving school.
 “The project was initially started by Her Royal Highness Princess Maha Chakri Sirindhorn to help the hill-tribe children living in distant border regions. These children were often found to be deprived of protein, which leads to poor mental and physical development.
CPF joined the project with the Border Patrol Police that run schools under the patronage of the Princess.
The programme steadily grew to become CPF's most successful social assistance project, attracting supporters from Japanese and other foreign business associations to pitch in.
Sooksunt recently presided over an award ceremony recognising the top 70 schools in the Kingdom that recorded outstanding ressults with this egg programme at Thairath Kiri School in Pib Pra village, Take province.Thairath Kiri School has about 650 students, with 40 per cent of them from hill tribes and a further 40 per cent from families of Myanmar origins.
“Their strong assimilation in Thai society allows them a future in the Kingdom and they have the advantage of speaking many languages. The hill tribes include Hmongs and Karen, making the school one of the more diverse and multi-lingual of Thai classrooms.