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Pet-Food Division Commits B365m to Expand Production

Posted on: Wednesday, 4 January 2006, 12:00 CST

By Pitsinee Jitpleecheep, Bangkok Post, Thailand

Jan. 4--International Pet Food Co, the manufacturer and distributor of JerHigh pet food under the Charoen Pokphand Group, plans to invest 365 million baht to expand production capacity this year and next.

Managing director Sukhawat Dansermsuk said the investment would be made in two phases. About 250 million baht would be spent this year to quadruple the daily capacity of dry JerHigh pet snacks to 20 tonnes.

Next year the remaining 115 million baht would be used for machinery installation to increase wet food production, bringing daily capacity of all kinds of products, wet and dry, to 40 tonnes from 15 tonnes currently.

"After two-and-a-half years of establishment, the JerHigh brand has become very successful because it is a pet food made from real chicken meat," said Mr Sukhawat.

The brand has also benefited from a marketing strategy that includes a budget for dog show sponsorship.

"When I have the opportunity, I scoop a spoonful of JerHigh out of the bag and I'm happy to put it into my mouth and taste it. This is to confirm that our product is very hygienic," said Mr Sukhawat.

In its first year, sales of JerHigh reached 70 million baht and in 2005 they jumped to 150 million baht. The company expects sales to reach 260 million baht this year, 514 million baht next year and 900 million baht in 2008.

Mr Sukhawat said half of the products were now sold domestically and the rest exported, mainly to Australia, New Zealand, Indonesia, Malaysia and Hong Kong.

Most of the output from the expanded capacity would be for export, he added.

"Many international brands have entered the Thai market, and we are ready to go international. We're not afraid of competition because we have strong production and raw materials, and we offer a new product approach."

The company has recently launched a wider range of JerHigh products, which include main dishes, food supplements, snacks, pet treats and gifts.

He said the company would expand further in the 10 billion-baht dog business in the future, with plans to open pet shops in the pipeline.

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Copyright (c) 2006, Bangkok Post, Thailand

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Source: Bangkok Post

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