Cargill of U.S. investing $70 million in Thailand
United States-based food and agriculture company Cargill is investing over $70 million in technology, and research and development for its poultry and seafood supply chains in Thailand to meet increasing global demand, Cargill’s chairman said last week.
“Poultry consumption is an important business for Cargill, making up nearly 80 percent of the company’s operations in Thailand and exports to 28 countries around the world,” said David MacLennan, chairman and chief executive officer of Cargill, which is based in Minnesota.
Accordingly, he said that $65 million of the $70 million would be invested in its chicken processing operations in the northeastern province of Nakhorn Ratchasima. Another $3 million would be used to improve an aqua-feed production plant in southern Petchaburi province, and the remaining $2 million would be devoted to its research and development facility in Samut Songkhram province just outside of Bangkok.
Thailand is a logical choice for Cargill’s investment because the Kingdom is strong in agriculture, food processing, and logistics. All three sectors are among the industries being promoted under Thailand 4.0, the 20-year national strategy to create an advanced economy and society.
Cargill has been operating in Thailand since 1968. The company has invested over $1.15 billion in Thailand during its half-century in the country.
Today, Cargill has 14 facilities in Thailand and employs over 17,000 people. Its operations in Thailand are comprised of origination, sourcing, processing, handling, distribution, and marketing of a wide range of products, including agricultural commodities, animal feed, cooked poultry, food, and ingredients for food and beverages.
MacLennan isn’t nervous about trade frictions that have caused some businesses and analysts to view the global economy with caution in the coming year. “The global economy and consumption market can beef up revenue in Thailand to meet Cargill’s expectations,” he said.
Cargill Siam reported over $1 billion in revenues last year, and the chairman told reporters that he expects revenues in Thailand to rise by 3 to 5 percent this year.
Cargill has its business presence in 70 countries with 155,000 employees globally. It was founded 153 years ago and has earned a wealth of experience in agricultural services, crops, livestock, food, health and pharmaceutical, and industrial and financial risk management.