Business Research – Frozen Shrimp Thailand
Since early 1990s, Thailand has become a world’s leading farmed shrimp producer and exporter. Demand from domestic market and the world has been increased significantly. In 2009, exported fisheries products reported by DOF(Department of Food) were 1.9 million tons and THB 224,542 million in value. The main products are canned tuna, frozen fish and frozen shrimp but when compared in value, the most valuable export products are frozen shrimp, preserved (boiled) shrimp, canned tuna and frozen fish. For this reason, the shrimp industry must play a more important role in terms of international trade and income.
Seeing this as an opportunity, we decided to create a new company which produces frozen shrimp products to fulfill the demand of the domestic and the world. Our products are made from frozen shrimps which after processed and being pack to be used for many purpose of consuming. The special things about our product is the source of raw materials, they all come from the trusted and qualified farm in Thailand. They are fresh and high quality so the outcome from those materials will have an excellent quality.
The report will briefly mention about problem that a new entry might face when starting new business in this field such as competitors, internal and external factors that affect it. Research objectives are our main focus in this research paper and those questions developed from the objects.
- Introduction
- Product Background
- Product Description
Shrimp is processed or boiled under standardized manufacturing process before proceeding to freezer, being packed and ready for shipment to consumers worldwide. Frozen shrimp products are available in a wide variety, ranging from whole, headless, tail-on, headless and shelled, boiled and to value-added products, e.g. sushi and breaded. In addition, pouched products are also available for more convenient preparation.
Product category
Current Market Situation
Thailand is now the world’s leading exporter of shrimp products, supplying over 20 percent of the world trade in shrimps and prawns. Under the HS code “030613 – Shrimps and prawns, frozen, in shell or not, including boiled in shell”, Thailand is No.1 exporter in the world with the exported value $1.7 million and keep 12% annual growth since 2007 to 2011.
Competitors
Our direct competitor is CP, they sell similar product like us. At the moment, they operate three shrimp processing facilities on the nation’s east coast. Combined capacity is 180,000 tons per year, with product forms ranging from raw and cooked commodity shrimp packs to tempura shrimp, garlic herb shrimp ready meals and other value-added items sold under the proprietary CP, Captn’s Pack and Authentic Asia brand names, as well as under private labels. Shrimp exports in 2010 topped 50,000 tons, of which branded products accounted for approximately one-third of total volume sales.
Currently 70% to 80% of the shrimp packed and processed by CP comes from company-owned and operated farms, with most of the rest supplied by independently-run farms in Thailand. Its vertically-integrated system includes hatcheries and aquatic feed mills. Our indirect competitors are those who supply shrimp to CP Problem Statement.
Business Situation
Even Thailand is one of the leading countries in producing and exporting frozen shrimp. However, the Thai shrimp industry is beginning to face a number of obstacles in the world market, such as stronger competition, trade policies and non-trade policies of major importing countries in particular. So establishing a new company for us now is a big challenge, we are trying to enter to the domestic market and soon expand business in order to perform international business trading.
References
- ITC calculations based on UN COMTRADE statistics. www.trademap.org
- Export 2010 -2011 Export 2011 – July 2012 Export Jan-May 2012 Import Jan-May 2012 Source: http://www.thai-frozen.or.th/fandf.asp
