Better Times Ahead Forecast for Thai Union Seafood, Petfood08 October 2013
THAILAND - Thai Union Frozen Products Plc (TUF) is predicting a recovery in its shrimp, tuna and petfood businesses in the coming months.
With the cause of the recent shrimp disease identified, The Nation of Thailand reports that TUF expects shrimp farmers to raise shrimp production. With tuna prices stabilising as well, the company believes its business operations should recover in the second half on 2013.
For the tuna business, a more stable tuna price is thought likely to encourage more orders. Tuna prices stabilised at THB1,800 to THB1,920 per tonne between July and September 2013. Stable tuna prices should enable TUF to price its canned tuna profitably and encourage buyers to place orders. Also, the easing of competition in the US-branded canned-tuna market has supported TUF's tuna business profitability.
On the shrimp business, The Nation reports progress on Early Mortality Syndrome (EMS). With the cause identified and a remedial treatment now more widely practised, Thai shrimp farmers are forecast to increase production. TUF can pass on most of the higher raw-material costs to customers and so TUF's shrimp business is predicted to recover in the third quater of 2013 from the first half of the year.
For the company's other businesses, The Nation highlights a new line picking up momentum. TUF plans to improve its operation in its pet-food business. The company has indicated that its pet-food business is poised for a turnaround - from a loss of THB200 million in 2012 to almost break-even level in 2013 - as it improves production efficiency and utilisation.
TheMeatSite News Desk