In a health-conscious era when seafood is considered good for you, a local processed-seafood producer and exporter aims to meet surging demand through a new source.

Union Frozen Products (UFP) has two main strategies: fishing in a new location - the Indian Ocean - and cooperating with the Fisheries Department to help fish and shrimp farms develop their growing processes.

It has invested Bt200 million on two fishing trawlers and joined with Indian partners to fish in the Indian Ocean in addition to its current source in Indonesian waters. It has also signed contracts with fish and shrimp farms with know-how to grow mass quantities.

Shrimp accounts for 60 per cent of UFP's exports, while fish and squid each make up 20 per cent. The United States and Canada are its main markets, accounting for 50 per cent of exports, followed by Europe at 30 per cent and Japan. Exports contribute 92 per cent of its annual sales.

Chief marketing officer Anurat Khokasai does not see Thai producers as competitors. Rather, they are China, Vietnam and Indonesia.

China has a great ability to quickly adjust production and change products to serve export markets, he said. In addition, its labour costs are significantly cheaper than those in Thailand, an average of Bt100 a day compared with Bt191 here.

Vietnam has even cheaper labour at about Bt80 per day. People there also study Thai industry and duplicate its successes, while Indonesia has a tax advantage over the Kingdom.

However, Thailand still has an advantage over both countries in terms of trustworthiness - the ability to consistently provide products of good quality to export markets.

Anurat said Thailand should not underestimate its three competitors as those countries, particularly China, might need only three years to reach the same level.

He said UFP had invested Bt150 million last year to reorganise its manufacturing systems and cut costs in the long term. It sought the cooperation of its workforce in managing costs, resulting in savings of 10 per cent so far.

Its Prantalay Marketing subsidiary manufactures frozen and chilled products as well as

the Prantalay sushi brand.

Prantalay has existed in Thailand for three years. It has 90 per cent of the Bt400-million frozen and chilled ready-to-cook market, 60 per cent of the Bt650-million sushi market and 20 per cent of the Bt3-billion frozen and chilled ready-to-eat market.

Prantalay has 5,500 retail outlets nationwide. It plans to launch advertisements and marketing events for separate products and expand selling points to 6,600 by year-end. Its marketing budget is Bt30 million.

Prantalay is also developing menus of Japanese food for delivery. They should be ready by the end of the year.

Saski Teruo, Prantalay's senior adviser, said the 40,000 Japanese living in Thailand could find no authentic Japanese food here, so this was a good marketing opportunity.

Meanwhile, Anurat expects to expand the company's target customers to include Thais who love authentic Japanese food. Each set will be priced at Bt300.

The initial plan is to start delivery in Bangkok's Sukhumvit area. The products will be made at a plant in Samut Sakhon that was opened last year as a joint venture between Prantalay and Japanese seafood firm Kyukuyo.

Nitida Asawanipont

The Nation