September 30, 2010

Sureerath Farm sees potential in European market

The Thai organic shrimp producer and exporter, Sureerath Farm, sees more potential in the European market with the aid of a German trade partner, Deutsche See, reports local news.

Deutsche See, a German fish and seafood product manufacturer, is initially importing 30 tonnes of organic shrimp from Sureerath Farm to feed its 23 subsidiaries across Germany and manufacturing plants in Bremerhaven and Hamburg.

"It took more than a year for us to conclude a deal to become a trade partner. The volume is small at first but there has been a positive market response and we expect to export more next year. Thanks to the Naturland certificate, the standard is a great passport to enable our products to gain access to premium markets in the EU," said Kritsda Hongrath, an executive at Sureerath Frozen Organic Prawn Co.

Sureerath Farm is Thailand's first organic shrimp farm to receive certification from Naturland, an institution widely accepted in European countries. It met strict regulations and also passed an inspection visit by experts of the agency, and its products are now allowed to carry the Naturland logo on their packages.

Hongrath said the company was also in talks with major buyers in China and some Asian countries to supply chemical-free shrimp products.

Organic shrimp cost 30-40% more than conventionally farmed shrimp, but the market outlook is bright because of high demand for hygienic and organic products worldwide.

As a result, the company is using its maximum production capacity of 500 tonnes a month, or 6,000 tonnes a year, up from 4,000 tonnes last year.

The firm started to manage a chemical-free black tiger prawn farm in 2003 covering 1,500 rai in Chanthaburi under a closed system, in which waste and sediment from shrimp ponds are not discharged but are used to make fertilisers.

Most of the output is targeted for export. The company tested the market locally at Tops supermarkets but was not successful.

"Considering the high prices and difficulty of handling, we decided to stop selling the product to the domestic market. If we want to resume sales in the local market, we have to do our own product handling, meaning we have to invest in freezers like some suppliers such as Prantalay, but it's not viable as our sale volume remains very small," he said.