Thai-Japanese food joint-venture expanding

3 billion baht to be invested in Betagro's food processing business including sausage, cooked-food factory & feed mill for animal feed.

Photo above of different kinds of sausages (Source: Wikipedia).

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Economics

Betagro pours B3bn in output, adding new plant

24/05/2012
Pitsinee Jitpleecheep

Betagro Group will spend 3 billion baht to expand its food-processing business this year.

Some 600 million baht has already been spent on Betagro MS Deli's sausage and cooked-food factory in Lop Buri province, said Athapol Uraipriwan, senior vice-president for corporate marketing.

The factory, which began operation in March, is a 80-20 joint venture between Betagro and Marudai of Japan.

It has a capacity of about 800 tonnes per month for export, mainly to Japan. Betagro MS Deli targets 200 million baht in sales in its first year of operation.

The remaining budget will be used to build a new food-processing plant in Khon Kaen province, improve its existing facilities and establish a new feed mill in Lop Buri.

The construction of the feed mill will be completed in the third quarter of this year. The output is split evenly between Betagro and outside customers.

Sales of Betagro Group this year are expected to reach 68 billion baht, up from 60 billion baht last year. Of the total, about 70% will come from the domestic market and the balance exports.

For overseas markets, about 55% of the products are exported to Europe and the remaining 45% to Japan.

"Though the European economy is facing a slowdown, our sales volume has not been affected because market demand continues to grow. However, sales value has declined slightly," Mr Athapol said.

With many uncontrollable factors in the second half of this year including the economic slowdown in Europe and higher wages and fuel prices, the company will reduce its risk and raise efficiency by automating production where it can.

At the same time, the company will expand its S-Pure brand internationally.

Currently, S-Pure products are available in over 200 premium supermarkets in Hong Kong. An additional 100 outlets will be added this year.

New brands of processed food and value products are also in the pipeline this year.

(Source: Bangkok Post, Economics, Betagro pours B3bn in output, adding new plant, 24/05/2012, Pitsinee Jitpleecheep, link) 

Food and Agribusiness Vocabulary

food processing - the science of turning of raw ingredients such as harvested crops or butchered animal products into attractive, marketable and long shelf-life food products (See Wikipedia)

processed - treated in some way, e.g., treated with chemicals, cut, etc.
processed food - food that has been cut, treated with chemicals to preserve and packaged to sell in store

deli - delicatessen, a food shop that sells meats, cheeses and food from other countries especially Italy (See Wikipedia)
sausage - a long piece of meat ไส้กรอก (See Wikipedia)

expand - to become larger ขายตัวออกไป

Betagro Group will spend 3 billion baht to expand its food-processing business this year.

plant - factory
spent - used ที่ใช้ไป

Betagro pours B3bn in output, adding new plant

Some 600 million baht has already been spent on Betagro MS Deli's sausage and cooked-food factory in Lop Buri province, said Athapol Uraipriwan, senior vice-president for corporate marketing.

joint -  done with someone else, do some activity or project together ที่ร่วมกัน, ความร่วมมือกัน
venture - a new activity, usually in business, which involves risk or uncertainty ธุริกิจเสี่ยงแต่สามารถทำกำไรได้
joint venture - a company owned and operated by two or more larger companies

capacity - the amount of something that can be produced ความสามารถในการ (ผลิต)
targets - goals or levels you plan to achieve

The factory, which began operation in March, is a 80-20 joint venture between Betagro and Marudai of Japan. It has a capacity of about 800 tonnes per month for export, mainly to Japan. Betagro MS Deli targets 200 million baht in sales in its first year of operation.

budget - an amount of money able to be spent on something, the amounts of money that an organisation has available to spend on different things during a period  งบประมาณ  (See Wikipedia)

improve - to make better ทำให้ดีขึ้น
facilities - the buildings, equipment and services provided for a particular purpose สิ่งอำนวยความสะดวก  สถานที่และสิ่งอำนวยความสะดวก
improve existing facilities - make the factories and buildings that the company already has better

feed mill - a factory that produces food for animals (feed) such as domestic livestock
establish - to start a company or organization that will likely continue for a long time สถาปนา, ก่อตั้ง, จัดตั้ง
establish a new feed milll

The remaining budget will be used to build a new food-processing plant in Khon Kaen province, improve its existing facilities and establish a new feed mill in Lop Buri.

construction - the work of building or making something, especially buildings, bridges, etc. การก่อสร้าง
third quarter - the 7th, 8th, 9th months of the 12 months of the business or government calendar   

split - to divide ทำให้แตกแยก
split evenly between ... - each is given an equal amount ...

The construction of the feed mill will be completed in the third quarter of this year. The output is split evenly between Betagro and outside customers.

expected - people believe it will happen คาดว่า (จะเกิดขึ้น)

domestic - within the country ภายในประเทศ
domestic market - the buying and selling of goods and services inside the country

the balance - the rest, what is left over  ของเหลือ
about 70% will come from the domestic market and the balance exports

Sales of Betagro Group this year are expected to reach 68 billion baht, up from 60 billion baht last year. Of the total, about 70% will come from the domestic market and the balance exports. For overseas markets, about 55% of the products are exported to Europe and the remaining 45% to Japan.

volume - the quantity or amount of something
sales volume - the total amount of sales

demand - the need and desire to buy goods and services by households and businesses ความต้องการ
market demand

factors - one of the things that effects a situation or event ปัจจัย
uncontrollable factors - things that can effect a situation that you can't do anything about (cannot control)

economic slowdown in Europe

wages - the amount of money earned per hour by a worker
fuel prices - the price of gasoline and natural gas, used to generate electricity, heat, and run cars and trucks
higher wages and fuel prices

risk - the possibility that something dangerous or unpleasant might happen ความเสี่ยง
reduce risk

efficiency - doing a task well without wasting time, money, resources (See glossary) การทำงานอย่างมีประสิทธิภาพ คุ้มค่าเวลาและใช้พลังงานหรือต้นทุนในการผลิตน้อย เพื่อให้ได้ผลผลิตมาก
raise efficiency - do work tasks better (without wasting time, money or resources)

automating production - replacing workers with machines

"Though the European economy is facing a slowdown, our sales volume has not been affected because market demand continues to grow. However, sales value has declined slightly," Mr Athapol said. With many uncontrollable factors in the second half of this year including the economic slowdown in Europe and higher wages and fuel prices, the company will reduce its risk and raise efficiency by automating production where it can.

brand - a type of product made by a particular company ตรา, ยี่ห้อ
expand its S-Pure brand internationally

premium - high quality; the best; special features or service that you pay extra for
available in over 200 premium supermarkets

outlets - stores selling a product, retail outlets ร้านค้า
brands - products with well-established names that people remember, that create a certain image and expectations about the product

in the pipeline - not finished or available yet, currently working on 

At the same time, the company will expand its S-Pure brand internationally. Currently, S-Pure products are available in over 200 premium supermarkets in Hong Kong. An additional 100 outlets will be added this year. New brands of processed food and value products are also in the pipeline this year.