PFP seeks foreign plant because of fish depletion

It is expected to make a decision on the matter by next year.

PFP has set an investment budget of at least Bt300 million, according to Thawee Piyapatana, PFP managing director.

Countries being considered include Malaysia, Vietnam and Indonesia.

Shortage of raw materials, mainly fish in local waters, is a major factor behind the initiative to invest abroad.

A second reason for the move is a labour shortage.

PFP director Thawatchai Ratanapisit said raw-material shortages had become the company's biggest issue.

To overcome the problem, it buys from Vietnam, Indonesia, India, Japan and the United States.

 "We realised the problem since late last year and started to change our plans. We stock quite a bit of raw materials. We are therefore able to smooth out production so far," he said.

In addition to the shortage of raw materials, the firm has to shoulder growing costs.

It has raised the price of its products by 20 per cent with three price hikes.

PFP still managed to record sales growth in the first four months due to adjustments in its production, packaging, distribution and marketing.

It also saw improved performance in the global market because of food shortages in many countries.

The shortfall is expected to last a decade. Recent disasters in China and Burma are also affecting food supplies.

The firm has recently tapped new market segments such as the Middle East.

PFP posted rising sales in Europe with 15-per-cent growth.

Thawee expected the firm to post an impressive performance in the second half of this year.

China is expected make large orders to cater to the Beijing Olympic Games, he said.

PFP targets sales of Bt2.9 billion this year, marking 10-per-cent growth worth Bt1.8 billion.