Thailand’s Charoen Pokphand Foods Invests $510 Million in Vertical Farming Network to Combat Climate Risks

Charoen Pokphand Foods (CPF), Thailand’s largest agribusiness conglomerate, has announced a $510 million investment to build Southeast Asia’s largest vertical farming network across Thailand, Vietnam, and Malaysia. The initiative marks the company’s most aggressive modernization effort as climate volatility threatens traditional crop yields.
The new network will include 47 vertical farms using hydroponics, LED lighting, climate-controlled nutrient systems, and AI-driven crop monitoring. CPF says the farms will produce leafy vegetables, herbs, and premium salad crops for domestic consumption and export.
The project is designed to reduce dependence on seasonal agriculture, which has been disrupted by drought in northern Thailand and unpredictable rainfall in Vietnam and Malaysia. CPF executives say vertical farming can ensure stable supply and higher food safety standards.
To develop the farms, CPF is partnering with Japanese automation company Spread Co., Singapore’s Archisen, and South Korea’s N.Thing. These firms will provide robotics, nutrient-delivery systems, and environmental sensors.
Analysts say CPF’s move could reshape Southeast Asia’s agricultural supply chain. Traditional farming in the region faces land scarcity, climate pressures, and rising labor costs. Vertical farming offers controlled production but has struggled to scale due to high energy use. CPF says solar integration and heat-recovery systems will reduce operating costs.
Thailand’s retailers, including Central Food Hall and Lotus’s, have already signed agreements to stock the produce. Export opportunities to the UAE, Qatar, and Singapore are also being considered.
The vertical farming network is expected to be fully operational by 2028, positioning CPF as a regional leader in sustainable agriculture technologies.