CPF buys into Brazilian shrimp farm Camanor
Thai conglomerate Charoen Pokphand Foods PCL (CPF) has acquired 40% shares in Camanor Produtos Marinhos Ltda., one of Brazil\'s leading shrimp farming and processors
Thai conglomerate Charoen Pokphand Foods PCL (CPF) has acquired 40% shares in Camanor Produtos Marinhos Ltda., one of Brazil\'s leading shrimp farming and processors, for US$17.5 million, to further expand its reach into high-growth markets. Mr. Adirek Sripratak, Chairman of the Executive Committee at CPF, said the new partnership in Brazil will benefit CPF by extending businesses, including feed and hatchery
Mr. Adirek said the company has agreed to purchase a total of 4,666,667 newly-issued ordinary shares representing 40% of total capital stock of Camanor worth THB 547 million (US$ 17.5 million). The deal is expected to be completed within a month of signing.
Camanor engages in shrimp farming and primary processing businesses in Brazil. Its main products include fresh and frozen processed shrimp distribution through domestic wholesalers and exports to countries such as France. It has also developed and its own shrimp farming technology called AquaScience®, which is a close operating system raising shrimp in a high density environment without using chemical or antibiotics, resulting in a high productivity per farm area.
“It is the synergy investment which will strengthen CPF’s competitiveness in shrimp business in terms of feed production, genetics improvement and shrimp processing capacity through the company’s vision “Kitchen of the World” by applying Camanor\'s experiences in shrimp farming technology and CPF\'s expertise in shrimp genetics. ” Mr. Adirek said.
The expansion is designed to serve local consumption. Its shrimp total capacity reaches an average of 100,000 tonnes per year which is not enough to meet domestic demand.
Brazil is a major source of agricultural materials required for production of shrimp feed and is also a high potential market with a sizable population and economy. It will also provide geographic diversification of CPF shrimp production operations.