Thailand's shrimp industry to see improvements in 2010

 

 

There should be an improvement in Thailand's shrimp industry in 2010, with better economic conditions and higher purchasing power.

 

Demand for shrimp products will likely increase, and production in 2010 is expected to be close to 2009's volume, said economic and business analysis firm Kasikorn Research Centre (KResearch). Shrimp exports will continue to grow moderately due to strong competition in the global market and a gradual economic recovery in major shrimp-importing countries.

 

In 2009, shipments of shrimp products are expected to reach a value of US$1.37 billion, up 5% year-on-year. In 2010, the export value of shrimp products may increase 9.5% on-year to US$1.5 billion, thanks to the global turnaround, said KResearch.

 

 

But close attention should be paid to supply volatility, due to diseases and adverse weather conditions that may affect Thailand's competitiveness and thus shrimp prices.

 

KResearch said other factors requiring a closer watch include the control of production costs, especially for animal feed, to maintain competitiveness; negotiations on anti-dumping tariffs imposed on Thai shrimp products by the US; and efforts to remove Thailand from a list of countries using forced child labour in processing farmed shrimp - which had been used as the foundation for trade protectionism by some shrimp-importing countries.

 

There should also be a focus on social accountability, as well as on environmentally-friendly shrimp production to help reduce global warming. Other issues of concern include shrimp quality, sanitation and hygiene standards, as well as the impacts of the Asean Free Trade Agreement. Some exporting countries may take advantage of relaxed rules of origin to export low-quality shrimp products via Thailand, which may tarnish the country's reputation in the long-term, KResearch said.