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Published on March 22, 2008

Thawee Piyapatana said the company had increased product prices 5 per cent last month and would raise them again by 15 per cent next month. PFP may have to increase them by a further 5 per cent in June.

He said there were many negative factors affecting the company's performance this year, such as the rise in manufacturing costs for products such as minced fish (known as surimi), which represents 60 per cent of production costs.

In addition, the strengthening baht will weaken the company's export revenue.

Fish stocks have declined by 50 per cent. Last year in the United States, 1 million tonnes were caught, compared to 1.4 million tonnes the previous year.

PFP has had to increase the level of imports of surimi from neighbouring countries from 5 per cent to 20 per cent - and this is hitting the company's bottom line.

After the price hikes, Thawee expects revenue to increase by 10 per cent from last year's level to Bt2.9 billion, but sales volume will drop due to the slowdown in consumer spending. Bt1.8 billion of PFP's sales revenue will come from exports.

"Although we plan to raise prices by 25 per cent this year, I don't expect to earn any profit. I just hope the company will not record a loss," he said.

However, Thawee added that if competition or some other factor prevented it from raising prices as planned, PFP would reduce production capacity by 10 per cent in order to stay in the black.

At present, PFP produces 12,000 tonnes of surimi per year and 15,000 tonnes of processed frozen seafood.

The company also plans to introduce new frozen seafood items, most of which will be premium products, to boost revenue.

Meanwhile, other frozen-seafood producers have gradually been adjusting their prices since last year.

Nalin Viboonchart

The Nation