The subsidiary of CP Group, the country''s biggest agribusiness conglomerate, is also upbeat about generating revenue of more than 40 billion baht from the sales this year, up 43% from the 28 billion baht it earned in 2009.
Chief operating officer Sumeth Laomoraphorn said the growth would come from the more extensive distribution coverage in both local and overseas markets, where the number has reached 110 countries.
With strong global demand, mainly from the Philippines, China, South Africa,and African countries, Thailand hopes to export a total of 10 million tonnes of rice this year, up from 8.5 million tonnes last year.
However, according to Mr Sumeth, rice production in Thailand may be little changed this year, at about 30 million tonnes, due to dry weather and the spread of planthoppers.
World rice prices might increase as El Nino may damage production in Brazil, South America''s largest grower, while demand from the Philippines, the world''s biggest importer, increases. These factors will potentially increase competition among buyers, he noted.
Thailand''s benchmark rice prices range from $510 to $560 a tonne because of a decline in production in India.
However, CP Intertrade is confident of achieving this year''s sales target of 1.6 million tonnes, to be split evenly between local sales and exports. The volume would be up significantly from 460,000 tonnes sold locally and 480,000 tonnes exported last year.
Mr Sumeth said that strong domestic sales were a result of successful marketing campaigns and distribution through RU Shops, the outlets or corners designed exclusively to sell bagged rice under the Royal Umbrella brand, which offers the same quality as its exports.
The number of RU shops, the first of which was opened in mid-2009, has grown rapidly to 400 today and the company aims to expand to 1,000 shops by end of this year.
"Such a quick expansion is in line with our study that consumers prefer purchasing rice, a quite heavy consumer product, from convenient stores and grocery shops rather than discount stores and supermarkets," he said.
Rice sold at small shops accounts for up to 70% of the total and the popularity of the channel is increasing, he said.
To deal with the rising sales, CP Intertrade plans to open a new rice-processing plant in Ayutthaya sometime in May to add another 1.08 million tonnes of milled rice, bringing the company''s total capacity to about 1.4 million tonnes.
The plant, which has been built in CP''s 3.5-billion-baht rice complex in Nakhon Luang district, is claimed as the world''s largest rice-processing plant under one roof, reflecting the group''s promising outlook in rice trade amid strong concerns over food shortages worldwide. It would help the company process various grades of white rice, fragrant rice, and parboiled rice.
CP''s Hom Mali fragrant rice has received the 2009 World''s Best Rice Award at the World Rice Conference hold in the Philippines last year.
According to Mr Sumeth, to thank farmers for growing quality rice, CP Intertrade has signed up Carabao, the veteran songs-for-life band, to perform 15 free concerts for farmers and consumers in 15 provinces across the country.
This entertainment marketing strategy is part of the stepped-up 400- million-baht marketing and promotion budget this year, which also includes a new series of television commercials to strengthen the brand and focus on rice quality.
Relate Search: CP Group, Sumeth Laomoraphorn, Royal Umbrellabranded
View :
374
|
