Thai Union's buyout of Mitsubishi's stake in the two companies' shrimp farming operations will give the company much-needed control over its raw material supplies in the face of increased competition.
The purchase of the remaining 49 percent stake in feed, hatchery and ongrowing company TMAC will give Thai Union full control of the upstream integration process, more raw material security and full traceability of its resources, Prasit Sujiravorakul, an analyst at Bualuang Securities told IntraFish.
Since the devastating Early Mortality Syndrome outbreak in Thailand, the country has significantly reduced its involvement in the sector, almost halving its production to around 300,000 metric tons per year.
