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Thailand’s Chuwit Farm, or popularly known as CFARM, is expanding its agribusiness portfolio with a strategic move into the layer chicken farming sector, with construction of a new farm facility already underway.
The project is expected to be completed by the fourth quarter of 2025, with commercial operations slated to begin in early 2026.
Mathucha Juengthanasombun, Deputy Managing Director, told a local media that this new venture represents the company’s first step into the layer chicken business, building on its strong foundation in broiler chicken farming.
The total investment for the project is estimated at USD 3.7 million, with a targeted payback period of five years.
According to Ms Mathucha, the investment is expected to generate long-term, stable revenue, as the egg business offers daily recurring income, in contrast to the cyclical revenue from broiler operations.
Initial capacity and market outlook
The new layer farm will begin with a production capacity of approximately 200,000 birds.
CFARM has already secured a market for its output through partnership agreements with existing broiler trading partners, who have expressed growing demand for egg-laying hens. This partnership model ensures that the initial output will have solid market support.
Ms Mathucha also noted that the company is prepared to expand capacity further if new demand arises. The company has already secured land and infrastructure for future expansion, providing significant long-term growth potential for its egg business.
Contract farming model continues
CFARM will adopt the same contract farming model it uses in its broiler operations.
Under this model, the company does not produce its own chicken and feed but procures chicks and feed from trusted partners, while focusing on raising chickens under strict quality standards. The company then returns the finished products to its contract partners.
This model helps mitigate risks from fluctuating feed prices, which are a major cost factor in livestock farming. By locking in raw material prices under pre-agreed contracts, CFARM is able to better control costs and enhance operational efficiency.
“We always seek partners that offer the best returns with the lowest risk. That’s the core strength of our business model,” said Ms Mathucha.
Core broiler business remains strong
CFARM’s core business remains its broiler chicken farming operations, with a total production capacity of 3 million birds per cycle, or approximately 15.8 million birds annually. Each production cycle takes 2 to 2.5 months.
While this segment continues to be a major revenue contributor, the company acknowledges the limitation of non-daily revenue cycles, which prompted the company to diversify into the egg-laying market.
“Expanding into the layer chicken segment strengthens our income structure and supports our long-term strategic growth,” Ms Mathucha said.