"Our export markets remain in good shape. The problem doesn't come from sales but from diminishing margins. In this environment, we have to try to boost our sales and prune back costs as much as possible. We might have to raise our prices," president Thiraphong Chansiri said yesterday.

The stronger baht has raised the company's cost of raw materials, mainly seafood, while the hikes in oil prices have pushed up transportation costs, he said.

Competition in the industry is intense but the company can handle it, he said.

"We have an edge over our rivals in costs. Although the high oil price has inflated our costs, our competitors' costs have also risen. It depends on who can manage the lowest costs. Our rivals come from Indonesia, the Philippines and South America," he said.

TUF is one of the largest seafood processors by sales in Asia excluding Japan and the largest tuna packer in the world in terms of production volume.

It also has operations in the United States and China.

The company's core business is the production and distribution of canned tuna, frozen shrimp, frozen tuna loins, frozen cephalopod, shrimp feed, canned seafood and canned pet food. It also runs a domestic snack business.

The company does not feel a pinch from the lingering political turmoil here because it is outward-looking.

Exports account for 90 per cent of its sales.

TUF will pursue its export-focused policy because demand is stronger overseas than in the domestic market, Thiraphong said.

The company's second-quarter earnings might fall a little from the previous quarter. In the first three months of the year it posted a net profit of Bt432.85 million on sales of Bt13.87 billion.