March 16, 2007

Thai Union Feedmill forms joint venture with US-based company

Thai Union Frozen Products (TUF)'s subsidiary Thai Union Feedmill (TFM), a processor and exporter of shrimp and fish feed has set up a Bt400-million joint venture with US-based shrimp breed developer High Health Aquaculture.

The venture, called High Health (Thailand) (HHT), would broaden the group's business infrastructure on the manufacturing and export of processed fishery products, particularly shrimp in an integrated manner, said TFM and HHT president Rittirong Boonmechote.

The HHT plant and research facilities would be located in Phang Nga province.

High market demand for shrimp globally meant that the business has positive growth potential. However, food-safety measures and product standards have also become stricter than ever thus making newer processing technology necessary for processors. 

For example, traceability systems must now be put in place that would be capable of tracing any purchased finished product from hatchery, feed mill, exporter and importer to consumer, said Rittirong.

This meant development technology for high-quality shrimp breeds would be a priority for the company and serve as the foundation of the group's manufacturing lines, Rittirong said.

Due to these factors, the company decided to expand its investment into its new HHT subsidiary. HHT's annual production capacity will be 3.6 billion post-larvae and nauplii, which can be boosted to 5 billion by June to meet growing demand among domestic shrimp farmers.