Golden partner for Grampian’s international expansion programme Feathers ruffled by Grampian Thai buy Grampian Country Food Group aims to develop its new acqusition, Thailand based Golden Foods International, as a significant source for serving European customers. The purchase is controv ersial as increasing tonnages of cheap and allegedly low quality poultry imported from third countries, Thailand particularly, have long provoked protest from growers and some processors in the EU. The domestic industry’s unease has become more apparent in recent weeks with talk of adverse currency movements in Asia and a softening of demand within Europe after the boost caused by last year’s BSE scare and the FMD crisis switching consumer spending away from beef and sheepmeat. Investment by Grampian in a third country facility would be almost certain to spark controversy unless explained carefully, as the venture might be interpreted as opportunistic exploitation of lower cost raw material availability. The company’s justification for its purchase of Golden Foods from Dutch multinational Wessenan hints at a strategy of becoming a better known player on the EU stage at least, and not merely as an exporter. Value of the deal has not been disclosed, but Golden Foods has about 4,000 workers. Grampian’s chicken division chief executive Malcolm Smith said Golden Foods had been identified “as an ideal strategic partner to develop our international expansion programme” and talked of his company’s “global operations”. Another source emphasised the aim was to develop the supply base in Thailand without exploiting it as a cheap substitute for UK-produced raw material: “We will operate Golden Foods to the same standards as Grampian, not using the UK as a dumping ground.” At present the UK market absorbs about 23 million bird equivalents per week, of which imports account for roughly 9m. This proportion is not expected to change much, but Grampian claims the Golden Foods takeover will be used to bring higher quality and greater transparency into the imported poultry trade. Nevertheless, it is intended to build up shipments to other EU markets, as well as developing other Asian outlets, from this base in Thailand. Furthermore there are increasing signs of Grampian seeking similar opportunities in pigmeat. Executives are known to have been looking in eastern Europe at potential pig producing and pork processing ventures, again with continental EU markets as the preferred destinations. {{MEAT }}
