Betagro PCL (BTG) announced a strategic plan to become a leading international food brand with a ramp-up in production capacity to meet domestic demand and supporting overseas market expansion. As part of the strategy, the company is also gearing up the development of value-added products and strengthening distribution channels to bolster its growing premium product portfolio. While pointing out that the prices of live pigs and broilers have begun to increase, BTG targets a sales increase of 5-10% to consolidate strength and sustaining continuous growth.
Vasit Taepaisitphongse, Chief Executive Officer and President of BTG, said the overall food consumption in 2023 is likely to recover continuously after the Covid-19 effects began to ease. Indeed, there is an increasing demand from the country's reopening, resulting in the economic revival that has significantly spurred consumption. But there was some volatility in the short-term prices of pig at the period between the end of last year to the beginning of this year, caused by the smuggling of trimmed pigs and the increased weight of fattening pigs, thus affecting the swine price structure in Thailand. However, the current trend of swine prices has begun to show an upward movement and will return to a stable level with good supply management.
Meanwhile, the price trends and broiler exports are expected to move upwards as well in the second and third quarters as compared to the slowdown in the first quarter of 2023. From those factors, Betagro has therefore formulated a strategy to drive its business towards becoming a leading international food business brand, building strength and achieving growth under four key strategies:
1) Continuously expanding production capacity to lay a firm foundation for production and strengthening the supply chain to support the domestic and international growth. The company will invest in new production plants and upgrading existing facilities to be more efficient to accommodate increasing sales opportunities.
2) Creating value-added products and distribution channels as Betagro focuses on introducing new product offerings to the food and protein-based market segments. These comprise chicken and swine products which will be instrumental to BTG's growth this year. It also aims to expand the ready-to-cook and ready-to-eat foods segment to support the hasty lifestyle of modern consumers, a behaviour that will result in a continued growth in demand. BTG hopes to see the ready-made food category to represent nearly 10% of its overall revenue in 2025, up from 5% in 2022.
At the same time, BTG will continue to expand its distribution channels that add value to its products -- modern retail channels, food service outlets, Betagro Shop and Betagro Deli stores to reach more consumers and creating continued growth.
3) Developing premium products by means of capitalising in on BTG's Research and Development Centre and innovation hub to develop premium products in three business :
1. Food and Protein business by the Food Innovation Centre (FIC) which covers the S-Pure brand that comes with super-premium meat products made entirely from natural flesh in top quality and safety.
The meat comes from the selection of good breeds, raised without antibiotics, growth accelerators and any chemicals throughout the farming under stringent production control in every step with modern technology.
Because of that, the S-Pure is the first and only brand certified for the meat raised without antibiotics (RWA) by NSF International.
The certification goes to the S-Pure-branded pork, chicken, and eggs which respond to the trend of consumers who value health and good nutrition - a market segment that will expanding the premium consumer base.
2. Pet business by the Pet Innovation Centre (PIC) dedicates to developing premium products that meet the needs for health and wellness.
3. Agro-business by the Agro Innovation Centre (AIC) that is tasked to develop premium-grade feed for swine, cattle and layers to meet the increasing demand for premium products.
4) Expanding International business and overseas market by investing in Cambodia, Laos and Myanmar with the establishment of new factories and improving the existing facilities for better efficiency. BTG is also keen to jointly investing with entrepreneurs in Vietnam. Furthermore, the company continues to penetrate new export markets beyond more than 20 countries recorded last year. BTG is interested in boosting its exports to the European market as well as introducing new products and expanding distribution channels that create added value in places like Singapore and Hong Kong. In addition, the company intends to export its cooked products such as cooked chicken to the ASEAN market, Japan and Europe. BTG is striving to create the awareness of the S-Pure and Betagro brands among consumers..
Mr. Vasit noted that the company's 2023 strategic plan has incorporated all major drivers to achieving the corporate objectives. To sum up, he said the plan accents on business growth both at home and abroad, ramping up production capabilities, relentlessly creating new food offerings, and expanding distribution channels that can add value to the product, strengthening premium product range, exercising cost controls with an efficient database system, and focusing on products in the food and protein-oriented sector that offers better profit margins to mitigate the impact of fluctuations in meat prices.
"The company's 2023 strategic plan will be instrumental to attaining our target sale growth of 5-10% and reinforcing the goal of becoming a leading global food brand for sustainable life," he concluded