CP Foods says Brazil deal aids shrimp business on feed, genetics and processing

The remaining 60% stake in the Brazilian shrimp producer will be held by three existing shareholders.

The deal will be finalized in one month’s time, according to a Stock Exchange of Thailand filing yesterday (April 18). The cost only represents 0.1% of CP Food’s assets, according to a Bangkok Post article.

CP Foods, part of agribusiness conglomerate Charoen Pokphand Group, indicated primary interest in the R&D side of the Camanor business. Its farming technology, which is called AquaScience, is said to increase farm productivity, boosting the yield per area to grow shrimp in a high-density environment without using chemicals or antibiotics.

Market diversification and competitiveness

Adirek Sripratak, CP Foods chairman, said the deal will “strengthen CPF’s competitiveness”​ in the global shrimp business in terms of feed production, genetics improvement and shrimp processing capacity.

It will also allow the Thai company to “extend businesses including feed and hatchery.”​

CP Foods added that the move also adds diversification, in terms of geography, to its shrimp production, which is mainly based in Thailand.

He said Brazil is a major source of agricultural raw materials used in shrimp feed manufacture, and is a market brimming with a potential and a sizable population and economy.

Camanor saw its net profit more than triple to $4.3m last year. The company is a major shrimp producer in Brazil, according to CP Foods. Its fresh and frozen processed shrimp are shipped domestically and abroad to markets such as France.