Chakrit Ridmontri
Senior Correspondant
Asian Aquaculture

Thailand's strong track record in shrimp processing will help ensure that the country continues to be the world's top exporter of shrimp, according to leading Thai processors. Although the U.S. and Japanese economies are both suffering, Thai processors are confident that shrimp consumption worldwide will continue to expand, albeit at a slower rate than last year's spectacular increase.

Thai processors are clearly aware that maintaining or expanding their share in the world market cannot solely be demand-driven. Rather, they will have to ensure that they supply the market with a diverse range of products that fully match consumers' expectations.

Product development
Thailand's shrimp processing industry has now been in existence for more than 30 years, long before the countries' commercial shrimp farms were developing in the early 1980s. At that time, the industry concentrated on processing wild shrimp for export.

According to Surapon Vongvadharoj, chairman and CEO of Surapon Foods Plc, the shrimp processing industry has never paused for breath in its drive to develop new and innovative products. Growth in the downstream industry helps improve the country's competitiveness, while ensuring it utilizes the most up-to-date technology, and meets the hygiene standards of importing countries, Surapon said.

"This level of readiness, along with the support of the government means that shrimp processors can operate more efficiently and productively," he said.

Thailand now processes imported shrimp, as well as its own domestically produced shrimp. Surapon says this development has helped the country to become a leading processing center, with the power to satisfy a broad range of customer requirements.

"Foreign buyers continue to focus on Thailand as a source for shrimp products because we have become a hub that can meet all their requirements. That is why we are the world leader in the shrimp processing business," he said.

"The reason Thailand has maintained its position as the world's top shrimp exporter is because its processors operate in line with good trading practices, which ensures a consistent supply of high quality products and punctual delivery," he added.

An engaging investment climate
As well as having the ability to produce a wide range of high quality shrimp products, Thailand's geographical location, skilled human resources and well-developed infrastructure also provide the ideal climate for investment.

"Although black tiger shrimp can be farmed anywhere in the tropics, Thailand is in an ideal location. The long stretching western and eastern coastlines provide a good deal of protection from storms, " said Dr Panisuan Jamnanwej, senior vice president of Pakpanang Coldstorage Plc and vice president of the Thai Frozen Foods Association. In addition, Thailand's comprehensive network of roads linking provinces across the country offers a convenient and cost effective transport solution. Thanks to this, raw materials can be kept fresh en route from the farms to the processors' plants, he added.

According to Rittirong Boonmechote, managing director of Thai Union Frozen Products Plc, freshness is the basis of quality. Thai processors are able to constantly match importing countries' hygiene and sanitary standards, ensuring that shrimp products from Thailand are accepted worldwide.

"Thai shrimp products are known for being high quality. No wonder they often attain premium prices," Rittirong said.

Dr Panisuan remarked that as well as having a constant stream of high quality supplies, the country's competitive and highly skilled labor force also contributed to the quality of Thailand's processed shrimp.

Although shrimp processors have already adopted the very latest technology, some areas of the industry remain labor intensive, Dr Panisuan explained. There are sufficient numbers of Thai workers skilled in this area, while their earnings are not excessive.

"Since the labor force receives an acceptable level or remuneration, and have a reasonable quality of life, they can operate effectively and focus on ensuring products are of the highest quality," said Dr Panisuan.

"A good supply of raw materials is not enough in itself. By no means do I wish to underestimate the competition, but the level of productivity, efficiency and reliability that Thailand now boasts can't be built overnight," Surapon said.

"The Thai shrimp processing industry's good track record, particularly in the development of value-added products, makes us feel certain that our industry can remain competitive, despite growing rivalry," he added.

As a luxury food item, shrimp is a price sensitive product. Therefore, it is essential to maintain prices at levels that are affordable for the consumer in order to try and boost consumption.

Processors need to constantly develop new products that strike a positive chord with consumers, while ensuring the quality and volume of exports is consistently maintained or increased.

"If processors can supply high quality products at reasonable prices, I believe shrimp consumption both domestically and worldwide will expand," Surapon concluded.