November 1, 2021

Thai Union Feedmill plans to lead aquaculture and animal feed sector, following Thai listing

Thai Union Feedmill PCL., or TFM, is confident of positive investor response, following the company's listing today on the Stock Exchange of Thailand, the company said in a press release last week. TFM aims to grow in overseas markets through cooperative agreements, joint ventures with trading partners, and direct exports in order to support food security in Asia.

With over 20 years of experience and expertise in the industry, TFM is a leader in the production and distribution of aquaculture and animal feeds in Thailand, offering quality and widely-known branded products.

Between 2021 and 2023, TFM expects to spend part of the proceeds of 1,177.4 million baht (~US$35.25 million; 1 baht = US$0.03) from the sale of shares in the expansion of production and distribution of aquaculture feeds through Indonesia-based subsidiary TUKL by adding two lines of production, which will increase capacity by 36,000 tonnes per year.

TFM CEO Bunluesak Sorajjakit adds that the company is determined to expand its operations to overseas markets with appropriate business models deemed beneficial.

An agreement of technical cooperation with Avanti Feeds Limited (AVANTI), India's major shrimp feed producer, allows it to use TFM's trade name and feed formulae to produce and sell shrimp feed in India.

TFM also joined with strategic partners to form PT Thai Union Karisma Lestari Co., Ltd. (TUKL), a subsidiary to produce and distribute aquaculture feeds in Indonesia. The two strategic partners are PT MSK, a major producer of frozen seafood in Indonesia, and AVANTI. TFM, PT MSK, and AVANTI hold 65, 25, and 10% of TUKL's paid-up capital respectively.

In addition, TFM formed a joint venture AMG-Thai Union Feedmill (Private) Limited (AMG-TFM) with a strategic partner in Pakistan. The Pakistani partner AMG is the country's major producer of aquaculture feed. AMG holds 49% of shares in the new company while TFM holds 51% as of June 30, 2021. AMG-TFM produces 7,000 tonnes of fish feed per year and plans to increase capacity to 15,000 tonnes per year within 2021. The joint venture has started commercial operations and achieved net profit since Q2 2021.

TFM is also eyeing increasing direct exports to countries including Malaysia, Maldives, Myanmar, Pakistan and Sri Lanka.