Vietnam’s pork shortage spikes Thai agro-industrial and food conglomerate’s incomes

The jump was due chiefly to the spread of African swine fever in Asia, which caused a significant shortage in pork supplies and the near doubling of prices elsewhere and particularly Vietnam.

CP Vietnam, an arm of the agro-industrial and food conglomerate, reported 1Q revenue at $817 million, up 34% from a year earlier. The market which has been suffering severe pork shortage has contributed 19% revenue to the group globally in the reported quarter, the company said in a report.

The Bangkok, Thailand-headquartered company said the increase in net profit was contributable to the pork business in many countries particularly Vietnam.

The African swine fever outbreak last year led to a significant decline in pork supplies in Vietnam, which pushed up the average pork prices in Vietnam and Cambodia. Meanwhile, businesses in many destinations achieved expansion targets, said Prasit Boondoungprasert, CEO of Charoen Pokphand Foods.

“This could be our best year,” said Prasit. “Pork prices are very good and chicken prices are recovering, and an easing of lockdown measures imposed by governments to suppress novel coronavirus infections will allow restaurants to open.”

The leading agro-industrial and food conglomerate of Thailand that operates in 17 countries and exports products to more than 30 countries under the "Kitchen of the World" vision, reaped $4.3 billion in sale revenue in the first quarter, up by 10% from the corresponding period last year.

The sale revenue of its overseas businesses in 16 countries which contributed 68% of total revenue increased by 12% on year, while the operations in Thailand which constituted 32% of total revenue witnessed a 6% revenue growth rate.

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