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CP Foods expects recovery in shrimp production

On June 16, 2015, Thailand’s Charoen Pokphand Foods reported that it expected its shrimp business to recover in the third quarter of 2015.
Source:, June 16 2015
Created: 20/06/2015

Viboon Supakarapongkul, CP Foods executive vice president, said, “We expect more raw materials will come to market in the third and fourth quarter. That means our shrimp business should improve.” He added that shrimp sales for 2015 would be about 20,000 metric tons, similar to 2014.

As a result of the early mortality syndrome outbreak that hit Thailand in 2012, CP Foods, one of the world’s major shrimp producers, has posted losses in its shrimp operations since 2013. Its share of the global market dropped to 10 percent versus 30 to 40 percent in 2012.

In addition shrimp sales, which account for a fifth of CP Foods’ total revenue, have been reduced by higher European Union tariffs on Thai frozen shrimp and the weakness of euro against Thai baht.

Because of higher tariffs on its shipments of shrimp to Europe, Viboon said CP Foods has shifted its shrimp-marketing focus from Europe to Asia, especially China, while its processing plants in Vietnam, not subject to the tariffs, export to Europe.

In June 2014, some CP Foods’ clients suspended orders when the United States downgrading Thailand for human trafficking, but when CP reported that its shrimp supply chain was free of illegal labor practices, 80 percent of those clients, including the likes of USA retailer Costco, came back to place orders with the company, Viboon said.

Thailand’s shrimp output is expected to rise 5-10 percent this year from 230,000 tons last year, but recovery could be hit by falling prices as supplies increase, said Kanda Kraikajornkitti, manager of the Thai Shrimp Association.



Tags: cp foods, cp food, c.p foods, c.p food, charoen pokphand foods,early mortality syndrome, EMS on shirmp

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