March 4, 2010

Malaysian gov't and Japan's Mitsubishi eye shrimp alliance with TUF

The Thai Union Frozen Products (TUF) has been approached by the Malaysian government and Japanese firm Mitsubishi, to become partners in the shrimp business.

Involved government agencies in Malaysia are already drawing up plans to make integrated shrimp industry a national model, which would cover everything related to the business, starting from setting up a hatchery to making feed meal, farming and processing.

The Malaysian government will spend about US$500 million to develop necessary facilities for shrimp farming. The government is focusing on the shrimp industry as a pilot project to develop potential goods for the export.

The Malaysian government is looking to go into a partnership with Mitsubishi for the development plan.

Despite being the world's biggest exporter of shrimp, Thailand is still facing tough competition. Last year, Thailand's frozen shrimp export volume grew 8.6% to 375,000 tonnes worth THB85 billion.

TUF managing director Rittirong Boonmechote, said though the firm was interested in the project, it would also give some thought to other opportunities.