November 4, 2005

Charoen Pokphand Foods optimistic despite US punitive tariffs on shrimp

Thailand's Charoen Pokphand Foods (CPF) has expressed optimism despite the fact that the US International Trade Commission (ITC) has voted in favour of retaining punitive tariffs on Thai shrimp.

The ITC had rejected arguments that the tariffs should be eased to help Thai producers hurt by last year's tsunami.

CPF said Thai shrimp prices in the US have risen 20 to 30 percent this year, due to limited global shrimp supply.

CPF added that the company was expected to see an increase in sales volume to the EU this year at 6,000 tonnes, compared with 2,000 tonnes last year.

Meanwhile, Thai prime minister Thaksin Shinawatra said he was not worried about the ITC's decision, as the country's shrimp industry "remains competitive" and shrimp from other countries were also subject to US anti-dumping tariffs.

According to CPF, the anti-dumping duty on Thai shrimp is at the moment 5.95 percent, compared with 7.05 percent and 10 percent on Brazilian and Indian shrimp respectively.

CPF recorded a net profit of THB1.24 billion and sales revenue of THB91.80 billion in 2004. The company said shrimp products only contributed THB3.6 billion in sales last year.