Thiraphong Chansiri, president of T

Thiraphong Chansiri, president of Thai Union Frozen Products, is the only representative from Asian companies chosen to sit on the Blue Ribbon Panel, a unique body of business, government, conservation and academic heads.

Convened by the World Bank to advise the Global Partnership for Oceans (GPO), the panel includes high-level players ranging from chief executives of some of the largest seafood companies in the world - including TUF, Bumble Bee Foods and High Liner Foods - to government officials and prominent marine conservationists.

"The panel has agreed a global strategy for aligning ocean health and human well-being. It emphasises that without action to turn around the declining health of the ocean, the consequences for economies, communities and ecosystems will be irreversible," said a World Bank statement issued last week.

Recent science from the United Nations' Intergovernmental Panel on Climate Change (IPCC) and the International Programme on the State of the Ocean has intensified the focus on declining ocean health.

"Ocean change is climate change and vice versa," said Ove Hoegh-Guldberg, chairman of the panel and adviser to the IPCC. "With looming threats of rising sea levels, warmer waters and a growing human population, we need healthy oceans and coasts to mitigate climate change, feed billions and protect coastal communities."

The panel agreed there was no "silver bullet" to resolving urgent ocean challenges. Therefore, it proposes five principles to ensure effective GPO investments: sustainable livelihoods, social equity and food security; a healthy ocean; effective governance systems; long-term viability; and capacity-building and innovation.

In an exclusive interview with The Nation, Thiraphong said most efforts towards sustainability only involved non-governmental organisations, academics and international agencies, but this was an opportunity for the private sector to participate.

"As a leader in the seafood industry, we feel obliged to take part and to make recommendations to the organisation, which is sponsored by the World Bank," he said. "It is a welcome move that now people have an increased understanding that we all need to work together for mutual understanding.

"I think sustainability is everyone's goal. Business also needs sustainability. Without fish and humans, we can't do anything."

For the sustainability of his own company, Thiraphong said developing human capital and innovations were now the two core focuses of TUF, which is intensifying its efforts to develop its talents and research-and-development capabilities. A key measurement will be a target to increase revenues from new products from 5-10 per cent at present to 10-20 per cent within three years.

The company will utilise its global networks to beef up its R&D and innovation activities. The R&D budget has been set at US$10 million (Bt310 million) initially. Currently, TUF has about 100 R&D staff, including 71 people in Thailand.

Thiraphong said over the next three to five years TUF's top three challenges would continue to comprise fluctuations of raw-material prices, currency exchange rates, and expanding its market coverage, both in terms of geography and product lines.

The company plans to increase the revenue contributions from shrimp, pet foods, and new products. At present, tuna provides nearly half of TUF's revenue, followed by shrimp at 20 per cent, pet food at 7 per cent, sardines and mackerel at 5 per cent, salmon at 4 per cent, and ready meals and other value-added products for the rest.

Geographically, the US market accounts for 36 per cent of TUF's revenues followed by the European Union (30 per cent), Thailand (10 per cent), Japan (9 per cent), and others (15 per cent).

"With a significant rise of product prices, the industry has to think new. Today, we no longer can perceive seafood as a cheap food. Consumers will look for value for their money. Thus we have to look out for new perspectives, innovations, ideas, and new value propositions," he said.