The abundance of shrimp processing plants in Thailand keeps prices solid for farmers -- even in times of slow markets -- and is likely to drive future increases in production, said the managing director of Siam Canadian Foods, a frozen seafood supplier.
There is an overcapacity of processing plants in Thailand and this means processors have to keep buying from farmers, to keep the plants running, said Jim Gulkin, group managing director of Siam Canadian.
Despite considerable consolidation in the Thai business – which has gone from around 80 factories 20 years ago, to around 10 now controlling 80 percent of the trade – there is still an overcapacity, said Gulkin.
“I
