March 24, 2009

Expected stagnation in food exports has forced many Thai food producers and exporters to shift their focus to domestic markets, with potential still seen in hotels, restaurants and catering.

Pacific Fish Processing (PFP) Co. deputy managing director Metta Prabsutha said that product liability law should help sales of processed seafood.

PFP, a leading seafood processor and exporter, is among the many contenders in the niche market worth about THB100 billion a year.

PFP managing director Thawee Piyapatana said that considering the current economic circumstances, the exports of the company could show flat growth for another year. Many food companies have similar problems, drawing them to pay attention to domestic sales now.

The National Food Institute said Thailand's food exports started feeling the pinch of the global crisis in the last quarter of 2008.

In the worst-case scenario, food exports might fall 15 percent to THB661.2 billion this year. PFP last year earned THB1.8 billion from exports and THB1 billion from the home market.

This year, its domestic sales have a better outlook, especially from Horeca customers, with local sales forecast to rise 10 percent to THB1.1 billion.

Horeca is a business term which refers to a sector of the food service industry, to establishments which prepare and serve food and beverages.

PFP makes frozen seafood and a wide range of value-added product made from fish paste, widely known as surimi (minced fish meat), and the company is planning to have about THB385 million in sales by supplying products to food chains.

While sales through fresh markets nationwide still represent about 60 percent of all domestic sales, income from Horeca sources has potential to improve significantly.

US$1 = THB35.30 (Mar 24)