New scheme has CPF upbeat on shrimp

Workers prepare shrimp at a seafood factory in Samut Sakhon province. APICHART JINAKUL

The Thai shrimp business is poised to regain momentum this year after production surged because of a newly developed farming technique and the company's breeding programme, says Charoen Pokphand Foods (CPF).

Shrimp farmers have regained confidence as local prices rise, while outbreaks of Early Mortality Syndrome (EMS) are no longer a concern because of a successful breeding programme and farming technique development, said Sujint Thammasart, chief operating officer for aquaculture business at CPF.

Five years ago, widespread EMS outbreaks prompted CPF to develop a farming system to curb the problem. The "3 Cleaning Approach" system focused on treating baby shrimp, ponds and water, producing healthier shrimp with a higher survival ratio and double the output.

"During the first three years we struggled after inventing the approach," said Mr Sujint. "It took time to convince farmers because they have to make investments to develop the pond."

"The company tried countless breeding programmes to develop strong and fast-growing shrimp," said CPG senior vice-president Robins McIntosh. "Nowadays, the EMS failure rate has dropped from over 40% to 0.1%."

Mr Sujint said shrimp diseases are a threat, but there is no emerging disease in the industry at the moment. The main challenge for Thailand's shrimp business is to control production costs to maintain competitiveness, he said.

Once an industry giant, Thailand lost key customers to major competitors like India and Vietnam because higher operation costs.

Thai shrimp exports to the US dropped by 42% year-on-year in June, said CPF. Similarly, shrimp exports to the EU, once a key market for Thai products, also declined after tax privileges expired in 2015 under the Generalized System of Preferences scheme.

The US-based National Fishery Institute reported global farmed shrimp production is projected to reach 3.5 million tonnes this year, with Thai shrimp output at 290,000 tonnes.

Thailand's advantage is the ability to farm bigger shrimp, said Mr Sujint. CPF is focusing on expanding the market for value-added Thai shrimp, he said.

"Operations in India and Vietnam will be the company's base for mass shrimp products," said Mr Sujint.