Good year seen for Thai shrimps

The prospects for Thai shrimp exports are seen by the industry as bright this year, with expected growth of 10-20 per cent in terms of both price and volume.

The Thai Shrimp Association yesterday predicted that the Kingdom’s production would grow by 10 per cent, from the 600,000 tonnes achieved last year. However, good environmental conditions and other supporting factors could boost production growth as high as 20 per cent.

Moreover, export value is expected to increase by 10-20 per cent due to low global supply, after major exporters such as Brazil and Indonesia were faced with widespread disease last year.

As the world’s biggest shrimp producer, four key factors could hamper exports from Thailand: widespread disease, especially the infectious myonecrosis virus, which damages the muscle of vannamei shrimp; trade barriers among importing countries, such as anti-dumping duty and the cutting of the Generalised System of Preferences (GSP); the effects of global warming; and a worldwide economic downturn.

Somsak Praneetatyasai, president of the association, said major exporters such as India, Vietnam, Indonesia and China would have higher production than last year, when they faced environmental and widespread disease problems.

For instance, India has shifted to the increased farming of large shrimp, Vietnam’s medium-size shrimp production is targeted to rise by 10-20 per cent this year, while Indonesia will experience a production increase after feeling the effects of a virus on its output.

However, China has turned from exporter to importer due to rising domestic consumption.

In addition, two major importers, namely the US and the European Union, are forecast to experience high demand despite facing economic crises.

In particular, the US Department of Commerce (DOC) is considering terminating its de minimis measure regarding Thai shrimp, which would mean the Kingdom’s exporters facing not only a higher import tariff but also import restrictions.

The association has worked closely with the Commerce Ministry in negotiating with the DOC over what is seen as an unfair trade practice by the US.

The EU is also considering cutting the GSP privileges granted to its trading partners. Thai shrimp currently enjoys import duty at 4.2 per cent for fresh shrimp and 7 per cent for processed shrimp, but any cut would reduce competitiveness vis a vis other nations’ exports still benefiting from GSP privileges.

Somsak added that the devastating floods late last year had caused shrimp production to drop by 6 per cent to 600,000 tonnes from January to November. In the same period, export volume fell by 8 per cent to 361,460 tonnes, but value increased by 10 per cent to Bt101.13 billion.

AEC?

He also pointed to the implementation of the Asean Economic Community in 2015, which would increase cross-border trade and investment in the shrimp industry.

For example, Malaysia, with its huge potential capital investment but slow development in shrimp business, would invest in or acquire farms in Thailand in order to further its exports. In addition, Thailand will explore opportunities to invest in countries with potential in the region.

Ekapoj Yodpinit, president of the Surat Thani Shrimp Farmers Club, said production from the South reached 330,000 tonnes last year, with Surat Thani, Songkhla and Nakhon Ratchasima controlling 20 per cent of the output.

Shrimp farmers are, however, worried about red-and-white-spot virus, natural disasters and the effects of global warming, which have damaged production by 20 per cent.

Pokkrong Kridsook, president of the Krabi Shrimp Farmers Club, said production along the Andaman coast totalled 90,000 tonnes last year, accounting for 15 per cent of the country’s output. Vannamei shrimp accounted for 97 per cent, and black tiger prawn the rest.

He said farmers in the area had however concentrated more on black tiger prawn since the country was now able to breed more high-quality parent stock, with production expected to increase to 5 per cent of overall output this year.

Black tiger prawn now offers more opportunity for export as China prefers importing both fresh and processed products. In addition, this variety has allowed farmers to enjoy value creation, with the farm-gate price now quoted at Bt230 per kilogramme (30 shrimp being equal to 1kg), he added.

Banjong Nissapavanich, |president of the Shrimp Farmers of the East Association, said farmers in the region were small producers with an overall output of 150,000-180,000 tonnes last year, accounting for 30 per cent of the country’s production.

However, 20 per cent of the production from the area is mainly supplied to the domestic market.