Charoen Pokphand Foods to acquire full ownership of CP Pokphand in a US$1.1B

THAILAND – Thailand-based Charoen Pokphand Foods (CPF) is in the process of acquiring a 23.8% share in CP Pokphand from Japan’s Itochu Corporation for approximately US$1.1 billion (¥125 billion), according to a Reuters report published Monday.

The purchase will make CPF the sole owner of CP Pokphand, a company incorporated in Bermuda that runs agribusiness operations in China and Vietnam, including animal farming and processed food distribution.

CP Pokphand was removed from the Hong Kong stock exchange in 2022 after a joint privatization move by CPF and Itochu, and the new deal concludes that arrangement.

In a statement, CPF said that full control over CP Pokphand would provide more room for strategic planning and streamlined decision-making across its regional operations.

Itochu separately disclosed that it expects the transaction to contribute a net profit impact of about US$888.1 million in its 2026 fiscal year.

CPF’s regional footprint and production strategy

Charoen Pokphand Foods, which operates under the larger Charoen Pokphand Group umbrella, is one of the world’s largest agri-food companies with a global presence in poultry, pork, and shrimp production.

The company engages in the breeding and distribution of livestock for commercial farming, producing a range of animals including broiler chicks, layer chicks, piglets, and parent stock for both poultry and swine.

Much of the genetic stock used for these breeding programs originates from abroad, particularly for grandparent stock, which is then raised and bred locally on CPF-owned farms.

CPF has previously stated that it aims to develop disease-resistant animal breeds that are compatible with local farming conditions, particularly in Thailand.

As part of its animal welfare policy, CPF has committed to eliminating the use of sow stalls in its pork operations by 2025 following advocacy from the NGO World Animal Protection.

Market outlook and export performance

The company operates in a growing food market, which is projected to reach US$73.5 billion in revenue in 2025, with an annual growth rate of nearly 5% through 2030.

In terms of pork exports, Thailand shipped around US$10 million worth of pig meat in 2023, ranking 41st among global exporters.

Key destinations for Thai pork included Hong Kong, Malaysia, Burma, Macau, and the Netherlands, with the industry now anticipating a sharp rise in exports due to the country’s status as free from African swine fever (ASF).

Expectations are set for a potential threefold increase in live pig and pork exports in the coming years, largely driven by this ASF-free classification.

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