Zero duty brightens Rubicon outlook

       Rubicon Group, a major Thai shrimp exporter, expects strong sales in the US market after being excluded from the country's anti-dumping penalties.
       The group, which represents nine companies in association with the seafood producers and processors Wales &Co Universe, Chanthaburi Frozen Co,and Thai Fishery Coldstorage Co, is expecting its exports to the US to reach $300 million this year, up from the $260 million achieved in 2008.
       "The absence of an anti-dumping duty makes our products very competitive in the US market and sales have been up significantly despite the local economic slowdown," said Rubicon Group head Poj Aramwattananont.
       The US Department of Commerce excluded the Rubicon Group and Thai I-Mei Frozen Foods from anti-dumping duties for frozen shrimp sold in US markets since Jan 16 this year. The duty rate was reduced to 5.34% from 5.95%for other Thai shrimp exporters following a ruling by the World Trade Organisation.
       According to the Thai Frozen Foods Association, the promising US market and a more stable baht helped to increase the volume of Thai shrimp exports in the first half to 152,114 tonnes, from 138,673 tonnes in the same period last year. Export revenue also rose to $1.012 billion from $920 million a year earlier.
       Average export prices for shrimp have dropped to $6.40 per kilogramme, down from $6.77 last year.
       The US market dominates exports of the crustacean. Its 46% share of the 335,372 tonnes exported last year generated 78.99 billion baht.
       Thailand plans to export 362,000 tonnes in 2009 which will generate about 82 billion baht in income. The US should remain the country's largest export destination.
       Mr Poj said the US economic recession had affected shrimp sales to the food service sector as consumers have stopped eating out.
       "Like many countries, US consumers prefer buying raw materials or semifinished meals to cook at home, creating strong retail sales," he said.
       The trend led the company to focus more on the retail market and it has ambitions to increase its retail sales volume to 70% soon from the current 30% to 40%. It plans to offer more readyto-eat and semi-cooked products for the US market.
       Mr Poj said that Rubicon, which also operates the tuna exporter Sea Value Co, is expected to earn about 20 billion baht in revenue from tuna exports this year thanks to strong export prices reflecting high raw material prices.
       Prices of raw materials have moved from about $900 to $1,200 per tonne late last year to more than $1,500 a tonne in the middle of this year before shooting up to $1,980 last week, he said.