BANGKOK — Thai conglomerate Charoen Pokphand Group has spent 404 million baht ($13 million) to strengthen its overseas livestock business in anticipation of a sharp post-COVID recovery.

The funds were used by Charoen Pokphand Foods, CP Group’s food processing arm, to acquire pig farms in Russia and further its livestock business in the country.

The farm acquisition came via the purchase of 100% of Russia’s BiltOil and its food and agricultural subsidiary.

CPF now has the capacity to raise about 2,600 sows and produce around 63,000 fattening pigs per year in Russia. The farms it has acquired are also able to produce around 13,000 tons of grain per year, most of which is used as feedstuff.

Analysts say the acquisition will help CPF expand its business in Russia as well as increase its poultry and livestock sales in neighboring European countries, particularly when post-COVID demand rebounds.

CPF earned 532 billion baht ($17 billion) in total revenue in 2020, about 70% of which was generated in foreign markets.

It aims to substantially increase sales over the next few years as it shoots for reaching 800 billion baht in total revenue in 2023.

“The transaction will provide the opportunity for CPF to expand its swine business in line with its strategy to produce fattening pigs in Russia,” the company said in a statement. In addition, CPF will be able to increase the utilization of its feed mill in Russia.

The purchase is another major step as CPF expands its global livestock business; it acquired Russia’s fifth-largest integrated poultry company in 2015.

“Sales of poultry and pork are expected to gradually rebound after the COVID pandemic when farming operations and demand get back to normal,” an Asia Plus Securities analyst said. “That would help boost CPF’s business abroad.”

Russia is one of 17 countries in which CPF has operations; others include China, the U.S., India, Japan, the Philippines and Vietnam.

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