Major Thailand food group Betagro has announced that it is to invest some Baht 3 billion (€68.7m)to upgrade its food processing systems in an effort to meet rising food safety standards for both the domestic and export markets.

According to a report in the Bangkok Post, the investment will take place over the next two years and will focus on renewing company's sanitation system at its main plant in Lop Buri, said chief executive Vanus Taepaisitphongse.

Taepaisitphongse claimed that increasingly stricter food safety regulations for poultry products destined to export markets such as the European Union has necessitated an improvement in both safety and quality standards.

The investment was also aimed at increasing production for the domestic market, in order to offset the increased production costs for the export market.

To back up the investment in its production facilities the group is also investing heavily in a new research and development facility, aimed at enhancing production techniques and improving productivity. Some of the funds will also be invested to integrate poultry and swine farms with processing facilities, Vanus told the Bangkok Post.

The group also plans to ramp up the number of chickens it breeds by 50 per cent to 2.4 million a week, while simultaneously reducing its reliance on contract farmers.

''To carry out this plan, we will put more than 800 million baht into building new farms,'' Vanus told the Bangkok Post. "The investment will also gradually increase production of swine to 1,600 pigs a day from 400.''

The investment also includes the construction of a new processing plant for the production of sausages.

In recent months Betagro has also agreed to go ahead with an investment venture to produce soup extracts and pork meat with a Japanese investment partner.

Vanus said the investment and subsequent expansion would help increase the revenue of the group from 20 billion to 27 billion in 2004.