June 8, 2012

After Myanmar opposition leader Aung San Suu Kyi recently told a huge crowd of Myanmar migrants working in the seafood industry here that she would create opportunities for them to go back home, the Union Frozen Products is preparing a plan to cope with labour shortage, The Nation reports.

The company plans to invest THB200 million (US$6.3 million) to automate its processing lines. It has already installed the basic equipment and plans to import manufacturing robots after successfully implementing them in its factories in Europe.

The plan for an automated production system will immediately solve the company's problems in case it loses a huge number of workers at the same time. The automatic system will be expanded every year in line with rising orders. The company is set to grow sales by 15% this year from THB98 billion (US$3 billion) last year, of which tuna controlled the lion's share with 48% followed by shrimp at 19%. The rest comprised sardines and mackerel, cat food, ready-to-eat food and value-added goods.

"The company believes that we can convince those Myanmar workers to continue working here as they will get pay equal to Thai workers and other benefits as well," Rittirong Boonmechote, TUF's managing director for shrimp product lines, said on June 6.

Of TUF's 12,074 workers, those from Myanmar account for 50-60%. If these legal migrants return home, the company's processing lines would suffer, as the company's plants are 80% concentrated on labour.

The company's shrimp business is set to contribute THB10 billion (US$314 million) this year. TUF is a global seafood exporter and the world's biggest tuna manufacturer.

The company hosted the R&D Festival, inviting more than 200 blue-chip business partners in the seafood industry from all continents to taste and try its products. There were 83 dishes from its food categories, including shelf stable products, frozen products, finger foods, sushi and sashimi, and bakery products.

In the past year, the company was highly successful in developing and selling 170 new products. Thailand is one of TUF's most significant production bases, with operations in Samut Sakhon and Songkhla. The company also focuses on quality. Both imported and exported products are produced to the same high standard. In two years, the company aims to be No. one in crab pasteurisation in the US, he added.