Why Thai quality chicken is taking wing worldwide

CHAVEEVAN GROUP I PROFILE

Thailand’s Chaveevan Group has carved out an enviable niche in the provision of premium chicken for the export market. As a completely integrated supply chain, certified to the highest standards, quality comes as standard, whether sold in the UK or the Middle East. “We don’t strive to be the biggest. We strive to be the best and grow as our partners grow,” asserted General Manager David Santos. Interview by Andy Probert.

Renowned as one of the best foodproducing countries globally, Thailand is naturally proud of its quality produce. None more so than the Chaveevan Group, which thrives as one of the premium poultry growers, producers and suppliers.

Its added value farm-to-fork operation encompasses every angle in the supply chain. At every point, the group asserts stringent quality control checks to ensure its products, sold in supermarkets from the EU to Japan and from the Middle East to the UK, are of the highest comparable quality.

“There is a misconception held by some that chicken or food from Asia is not safe at all. But the food industry in Asia, certainly in Thailand, has developed to a level that is now more hygienic and of a higher quality than seen in the West,” asserted General Manager David Santos.

“The facilities of the Chaveevan Group are comparable, if not better, than elsewhere in the West. We are dedicated to what we do and attest to Thailand’s collective slogan of ‘Food for the World’ by providing exceptional products.”

Family-run

As a family-run company, quality appears to be the very watchword of its existence. Its matriarch, Mrs Chaveevan Kampa, reflected: “Our business was formed from simple beginnings. Believing good food is essential to the development of young people, I prepared nutritious meals daily at our local school.

“The need for quality food is essential. I aim to make sure our name is associated with high food safety standards and high production values, which our partners demand.”

She launched the business in 1982 by raising 5,000 broilers at a family farm in Nongkham. She expanded into contract farming operations and breeder farms by buying day-old chicks and selling to farms.

Today, Mrs Kampa oversees a sprawling operation within the Chaveevan Group that accounts for upstream, downstream and midstream poultry operations.

Based in Si Racha, Chonburi Province, in Eastern Thailand, and less than 90 minutes from Bangkok, the company owns and operates feed mills, broiler farms, a slaughterhouse, laboratories, R&D units, logistics, and cooking and production plants.

The Chaveevan Group is responsible for exporting 100% of its raw and cooked product lines under private label for some of the best-known food retailers on the planet, as well as to schools, militaries and hospitals.

“We began exporting raw value-added poultry products in 1995 before we launched two cooking plants in 2004,” said Mr Santos. “Now, we export raw and cooked lines to more than 40 countries across Europe and Asia.”

On any given day, its eight-strong farming operation accounts for around 7 million live chickens, ranging in age from one day up to 40 days, and it slaughters up to 125,000 chickens per day.

“We also operate several contract farms who grow the chickens for us under our strict supervision and standards,” he added. “Our two cooking plants are running at full capacity and produce 200 metric tonnes of products per month.”

The silent partner

Mr Santos said: “We are now exporting 80% cooked chicken and 20% raw poultry products. We are the silent partner of our

CHAVEEVAN GROUP I PROFILE

customers, and we flourish in the private label sector.

“The reason why supermarkets and our very demanding customers trust us to put their labels on our products is that Chaveevan is one of the few integrators that has internationally recognised certifications.

“We operate to standards that guarantee full traceability across the entire chain; on food safety, conservation, as well as being halal-certified.” Chaveevan also adheres to the implementation of animal welfare and ensures all operating units are geared to preserving the environment.

In addition, the company extends complete ethical trading principles to all employees at every level. Its workforce is 4,000 strong, and staff turnover is less than 2%, with some having been with the company for more than 30 years.

Mr Santos said the company experienced expansion, posting a healthy 15% growth annually in the run-up to Covid-19.

“Trading and growth were flat in 2020 and 2021. We continuously monitor the international scene with lockdowns and new Covid waves daily, but we hope things will get better in 2022.”

While seeking to reduce the carbon footprint of its operations, the Chaveevan Group is also investing in expanding one of its cooking plants, presently running at full capacity, to accommodate more volume demanded from customers.

“The cooking plant is full up to Q3 of 2022, and more customers want to increase production. We are also considering further expansion at our farms to increase the chicken population in order to meet this demand,” he said.

“We also plan to modernise different units, such as converting waste to biogas at our slaughter plant, transitioning to a paperless environment, adding solar panels to facilities and minimising our carbon footprint.”

To be the best

During the pandemic, the company tested workers, isolated any that showed signs of Covid, and offered support facilities and services.

“Ten other big chicken factories were ordered closed by the Thailand Government because of issues surrounding Covid but we were not one of them,” remarked Mr Santos.

“We have remained open, and the Government was very responsive to our requests. As we are located in the east of Thailand, it is highly industrialised, and the Government did not want any disruptions to output and exports. They were very

attentive with their support and ensured the main ports remained open.”

He added the biggest challenges facing the industry was shipping availability, employee recruitment, and rising costs of production, packaging and raw material costs.

“We have positioned ourselves well to where our capabilities are, and we are protecting that in the high value-added segment of the chicken product niche. We have the skill, experience and international certifications to meet this most demanding of sectors.

“And because of our closed integration, we can implement the highest standard possible across the links in the chain.”

He added: “As a family-owned company, we can move quicker on decision-making. Our suppliers and customers have been with us for more than 25 years. We communicate in a very honest, open and transparent manner.”

Mr Santos revealed the company had experienced some financial crisis in 2007- 08 and “it was good customers that extended financing to us without any collateral because of the trust that exists in these long-term relationships.

“We overcame this problem, and we are very thankful. Our customers and suppliers are not just numbers in our book; we treat them as our partners.”

He concluded: “Thailand is one of the top five chicken producers and exporters in the world. Our industry is robust and resilient, and continues to grow. The Chaveevan Group‘s positioning will not change: we don’t strive to be the biggest. We strive to be the best and grow as our partners grow.” n