On Wednesday, the share price of Charoen Pokphand Foods Public Company Limited (SET: CPF) at the time of 11:10 a.m. was at THB 19.10, a THB 0.30 or 1.6% increase with a total trading value of THB 253.82 million.
Meanwhile, the share price of Betagro Public Company Limited (SET: BTG) at the same time was at THB 20.60, a THB 0.40 or 1.98% increase with a total trading value of THB 187.46 million.
The rise in CPF and BTG prices reflects the nationwide swine farmers’ network announcing an increase of THB 4 per kilogram for farm gate live hogs, effective from June 8, 2026. This adjustment aims to reflect higher production costs, particularly for animal feed raw materials.
This increase is seen as a positive factor for CPF and BTG, which are major integrated agribusiness and food corporations in Thailand, with swine and poultry as core businesses. The higher selling prices of live animals and meat products are likely to support revenue and profit margins in the upcoming period, if these companies can efficiently pass on the production costs to selling prices.
Krungsri Securities noted that the overall meat industry has begun to stabilize as demand and supply gradually return to balance, despite persistent high breeding costs. The current domestic live chicken price is steady at THB 34.50 per kilogram, while average breeding costs are about THB 37 per kilogram. The domestic live swine price is THB 55.50 per kilogram, which is close to the production cost of approximately THB 55 per kilogram.
In Vietnam, the price of live hogs is around VND 66,667 per kilogram, or about THB 80 per kilogram. Despite dropping by 1.2% from the previous week, this price remains well above the breeding cost of about THB 43,000 per kilogram. Meanwhile, live hog prices in China fell by 0.8% to CNY 9.56 per kilogram, or about THB 45.40 per kilogram, due to an oversupply in the market.
However, although the domestic swine price increase is generating a short-term positive sentiment for CPF and BTG, the securities firm still maintains a bearish outlook for the agribusiness and food sector. The broker expects average meat prices in 2026 to be subdued, while production costs remain elevated, which may pressure the profitability of industry operators.
Kasikorn Securities stated that this week’s swine prices hike was likely supported indirectly by the “Thai Chuay Thai Plus” program, benefiting players in the pork segment. At the same time, key animal feed raw material prices, such as soybean meal and corn, which rose earlier, are expected to gradually decline during July-August with the harvest season, helping to ease the cost pressure.
Additionally, BTG’s valuation remains attractive, currently trading at a price-to-earnings (P/E) ratio of about 8.5 times, with an estimated dividend yield of around 4.6%.
