TUF, the Kingdom's largest seafood exporter, will increase its export prices of shrimp and tuna products by 2-4% soon to offset the increase in the daily minimum wage and raw materials costs.
Thai fast food and bakery outfits had taken similar measures already, Thiraphong Chansiri, president of TUF, said that even though the company had reduced some operating costs and increased productivity since last year to deal with the 300 baht daily minimum wage imposed last month in key provinces, it now has no choice but to increase prices.
At TUF, wages account for 10% of total operating costs. The company has witnessed a 4-percent increase in raw-materials costs and wages, so it has had to raise export prices by 2-4 per cent, Thiraphong said. But the company has no plan to raise domestic prices, he said. Even though it is facing higher costs, the weak baht and the stable price of tuna can help the company turn a profit.
Revenue and profit this year will grow no less than 15%, Thirapong said, adding that the company had purchased a 40% stake in Pakfood (PPC), the country's leading shrimp processor, adding that PPC's figures would be consolidated into TUF's in the current second quarter.
Thai fast food and bakery outfits had taken similar measures already, Thiraphong Chansiri, president of TUF, said that even though the company had reduced some operating costs and increased productivity since last year to deal with the 300 baht daily minimum wage imposed last month in key provinces, it now has no choice but to increase prices.
At TUF, wages account for 10% of total operating costs. The company has witnessed a 4-percent increase in raw-materials costs and wages, so it has had to raise export prices by 2-4 per cent, Thiraphong said. But the company has no plan to raise domestic prices, he said. Even though it is facing higher costs, the weak baht and the stable price of tuna can help the company turn a profit.
Revenue and profit this year will grow no less than 15%, Thirapong said, adding that the company had purchased a 40% stake in Pakfood (PPC), the country's leading shrimp processor, adding that PPC's figures would be consolidated into TUF's in the current second quarter.
