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CPF vows to keep food prices unchanged

BANGKOK: Charoen Pokphand Foods (CPF) Plc says it will keep its meat and food prices unchanged for at least two months as the company uses local sources for most of its raw materials.

economics
By Bangkok Post

Wednesday 25 March 2026 01:40 PM


Photo: Bangkok Post

Photo: Bangkok Post

The Agro-industrial and food conglomerate is reinforcing its position as ‘Kitchen of the World’ by transforming from a traditional meat exporter into a global leader in innovative ready-to-eat food, after becoming the world’s seventh-largest meat producer with exports worth B600 billion in 2025, reports the Bangkok Post.

“Even as oil prices rise, leading to higher costs for fuel and petrochemical plastics, both important elements of CPF’s logistics and packaging processes, we fortunately have plastic and packaging stock to last for two months," said CPF chief executive Prasit Boondoungprasert.

Fuel accounts for only 3-4% of CPF’s total production costs, while plastics and logistics contribute 4% of the total. Up to 70% of total costs stem from animal feed materials, including corn and tapioca, which are sourced locally.

He said the company will reconsider product prices in the near future.

"It’s anyone’s guess how long the Middle East war will last and how high oil prices will climb. We are monitoring the situation and if we need to increase product prices it would be on a satang basis," said Mr Prasit.

"We can confirm consumers at supermarkets will not experience product shortages, as we have sufficient budget to maintain inventory levels amid global supply chain concerns. The Middle East conflict has not had a uniformly negative effect on CPF."

CPF maintained its 3-5% year-on-year sales growth target for 2026, in line with the industry pace of 5-6%, as the war is expected to result in higher demand for food.

He said CPF is intensifying its shift from a purely agro-industrial operator to a high-value food vendor, scaling up production of higher-margin ready-to-eat meals and processed food. The company’s food-base portfolio accounted for 25% of its total revenue in 2025 valued at B120bn, compared with zero in 2023.

"We aim to double our food-base revenue to account for 50% of total revenue in the near future, with sales volume growth of 10% annually. We want to become a global leader for ready-to-eat products in three years under our Kitchen of the World vision," said Mr Prasit.

CPF is increasingly turning to artificial intelligence (AI) technology to streamline operations, lift productivity and efficiency, and reduce operational overhead costs, he said.

Key applications include deploying AI chatbots to automate routine tasks and sales management, and optimising supply chains through demand forecasting.

The company has roughly 120,000 employees across 14 countries, of which 70,000 are in Thailand.

CPF posted a net profit of B25.2bn in 2025, up 29% year-on-year, attributed to overseas operations, which now account for two-thirds of the company’s total sales.

Revenue tallied B571bn last year, down 2%. The company paid B1.25 per share in annual dividends in 2025.