24 April 2024 03:59 am
Ceylon Grain Elevators (CGE) PLC, the largest operator in the poultry industry in Sri Lanka, shared that it is looking to expand into new overseas markets as a key growth strategy.
CGE currently exports feed to regional countries and will look to expand exports and also venture into new export markets, by harnessing the brand reputation of Prima.
“The expansion of our Commercial and Breeder farms and adoption of technology for greater resource efficiency and environment sustainability will be a key priority in the next few years,” CGE Non-Executive Independent Chairman Wickrema Senaka Weerasooria said.
He noted that CGE foresees evolving consumer preferences as opportunities for the company and its premium product lines. Reason being, consumers increasingly preferring the healthier and the more nutritious options which the company is committed to manufacture.
“Moreover, the new generation of consumers will be more conscious of and demand sustainable business delivered in a sustainable manner,” Weerasooria added.
CGE says it is confident in catering to this evolving consumer group with its scale of operations and research and development, combined with the technology, expertise and the brand equity of its immediate holding company Prima Singapore.
Weerasooria stressed the Group finds itself well positioned with a head start to respond to meet new opportunities arising in the future.
In the 2023 financial year, CGE achieved its best performance in its 40-year history, with revenue growing by 10 percent over the previous year to reach Rs.19.59 billion whilst Profit After Tax increased by 298 percent to Rs. 4.05 billion as the operating environment gradually became more conducive compared to 2022.
CGE attributed the performance to the focus on consistent quality and nutritional value of the products and increased demand for both Chicken and Day Old Chicks (DOCs).
However, the company faced challenges in feed sales due to farmers turning to cheaper, low quality alternatives such as self-mixed feed instead of the premium compound feed.
The start of the year saw diminished demand for chicken due to reduced purchasing power on the back of soaring inflation that continued from 2022 and higher taxes which created an oversupply of chicken in the market and hence intense price competition amongst many producers.
However, demand for chicken increased towards the second quarter of the year spurred by the festive seasons of April New Year and Ramadan.