Thai Union Frozen Products (TUF) expects the second half of 2013 to reveal a recovery of operations as tuna prices begin to stabilize. The world’s largest seafood processor and exporter believes more stable prices will benefit its tuna business by encouraging more buyers to place orders.
Between the months of July and September this year, skipjack tuna prices steadied to the range of USD 1,850 to USD 1,920 per ton CFR Bangkok. According to analysts, Kasikorn Securities, this will allow for TUF to price its canned tuna with a cost that will encourage buyers. An easing of competition in the US branded canned tuna market has also enhanced TUF’s tuna profitability.
Shrimp business for the company is showing progress as well, fueled by a more widely practiced remedial treatment of Early Mortality Syndrome (EMS). An ongoing epidemic of this disease cut the supply of shrimp and caused difficulty for Thai exporters. Now, however, TUF expects Thai shrimp farmers to gradually increase production.
With a more stable tuna outlook and the expected recovery of the shrimp industry, TUF believes that its operational improvement will witness an upsurge over the remaining months of this year, with the end of 2013 showing enhanced performance across all categories of production.
Thai Union owns major the tuna brands John West, Chicken of the Sea and Mareblu. Various types of seafood make up its extensive product list including pet food, which is also predicted to recover from its 2012 loss and break even for 2013. |
