SET-listed Thai Union Group Plc (TU), the world's biggest exporter of canned tuna, plans to set up the country's first shrimp research and development (R&D) centre in a bid to make Thailand the world's number one in the business, says a senior executive.
Rittirong Boonmechote, TU president for shrimp business, said the R&D centre would need an investment budget of 500 million baht, which is expected to come from seafood-exporting companies, the government and TU itself. The centre is expected to be fully constructed and start operation by 2017, he said.
"We [the private sector and the government] are in talks concerning the centre and will sign a memorandum of understanding after Songkran," he said.
However, they have not yet named the centre officially, Mr Rittirong said.
The shrimp centre is one of the Pracha Rat (People's State) projects, which means the people, the government and businesses must work together to pursue sustainable development and help farmers, workers and communities secure their livelihoods.
The committee overseeing the launch of the shrimp centre is chaired by Agriculture Minister General Chatchai Sarikulya, while the head of the private sector is Issara Vongkusolkit, chairman of the Thai Chamber of Commerce.
Mr Rittirong said the centre will play a major role in upgrading the standard of the Thai shrimp industry since it will be a R&D hub creating innovations that will help drive exports and support the economy.
"The centre will develop ways to make shrimp stronger and disease-resistant as well as provide technology that helps shorten the shrimp-breeding period from 150 days to 120," he said, adding the research and technology will help shrimp farmers to develop a sustainable business.
More than 90% of shrimp export products are shrimp raised in farms and only a small amount are caught at sea.
However, shrimp exports have seen a sharp drop over the past few years due largely to a falling supply caused by an outbreak of early mortality syndrome.
The R&D centre is also expected to help solve the deadly disease and increase Thailand's shrimp raising capacity substantially from the current 200,000 tonnes per year, which is relatively low.
"We hope the centre will help solve the problem as well as help raise the standard of our industry to reclaim the rank of the world's number one shrimp exporter," he said, referring to the capacity of 600,000 tonnes a year when Thailand was the world's biggest shrimp exporter.
Shrimp exports stood at 250,000 tonnes in 2015, and are expected to rise to 270,000-300,000 tonnes this year, said Mr Rittirong.
With recovery in the shrimp business, TU expects revenue from shrimp exports to rise to US$1.5 billion this year, up from $1.4 billion in the previous year.