S. Khonkaen Foods Plc, Thailand-based producer and distributor of processed meat and seafood products, has set aside Bt 300 million (US$8.6 million) in 2024 to automate its production as it plans to rein in the rising cost of manpower. Meanwhile, the company will also allocate a smaller amount towards its expansion in China.
Jarunpoj Rujirasopon, Chief Executive of International Business said it is hoping to sell its fermented pork in China with projected sales of Rmb 5 million (US$700,000) in the first year. Apart from China, the company also plans to introduce its popular meatballs and Isan-style sausages to the US market. In Europe, it aims to distribute its products to Asian food services and restaurant chains, apart from the existing Asian groceries which it has already supplied many years back.
In the Asian market, S. Khonkaen Foods is also expanding its seafood fish ball product line into countries where hot pot cuisine is popular and these include China, Taiwan, South Korea, Japan, Singapore and Malaysia.
For the local market, the pork business is expected to recover after the successful address of the issue on smuggling, while the company also aims to grow its business via traditional trade offering new affordable products within the price range of Bt 10 to Bt 20 (US$0.30 – US$0.58). More efforts will be made to boost sales in wet markets by leveraging the existing customer base of Mahachai Foods Co, a subsidiary of S. Khonkaen.
The company also expects to achieve profitability for its quick-service restaurant (QSR) business in 2024.
For the first 9 months of 2023, S. Khonkaen reported sales revenue of Bt 2.3 billion (US$65.9 million).
