May 20, 2026
 

Thai Union Feedmill to invest US$55 million in Ecuador factory as domestic shrimp output declines

The move positions TFM to serve the world's largest shrimp-producing market directly, with capacity targeted to rise 80% by 2028.

 

Thai Union Feedmill Plc (TFM) plans to invest up to US$55 million in a new production facility in Ecuador, targeting an 80% increase in total capacity upon completion in 2028, as the company looks beyond Thailand's shrinking shrimp sector for growth.

 

Chief Financial Officer Piyanuch Marittanaporn said the investment covers facility construction and machinery, with a shareholder agreement currently being finalised. Chief Executive Peerasak Boonmechote said Ecuador was selected on the basis of its position as the world's largest shrimp producer, with annual output of around 1.5 million tonnes and growth of 10–15% per year.

 

The strategic rationale is partly shaped by Thailand's declining shrimp export volumes. Exports fell from 211,000 tonnes valued at THB69.5 billion (US$2.06 billion) in 2017 to 129,000 tonnes valued at THB40.9 billion (US$1.21 billion) in 2025. Peerasak said the company sees continued opportunity by deepening farmer relationships and aligning products more closely with market demand, including in the premium and sustainability-certified segment.

 

TFM currently operates two factories in Thailand — in Samut Sakhon and Songkhla — and one in Indonesia, where it is also considering capacity expansion and broader market coverage. Thailand and export markets account for approximately 87% of revenue, with Indonesia contributing 9%.

 

Domestically, Peerasak estimated the Thai freshwater fish feed market at THB7 billion (US$207 million), with Nile tilapia and red tilapia together accounting for approximately THB5 billion (US$148 million) of that total. He said TFM's market share in freshwater fish feed remains relatively small, leaving room for growth.

 

On input costs, Piyanuch said the company does not plan to raise product prices despite a roughly 30% rise in fishmeal costs since the third quarter of last year, citing long-term supply contracts for wheat flour and soybeans as a buffer against further cost pressure.

 

— Bangkok Post