March 12, 2014

Prices for Thailand's shrimp raw material continue to decline due to a combination of slow demand and rising production.

Prices for 60 pieces/kg shrimp are THB255-260 (US$7.87-8.02) per kilogramme for the week of March 3-8, compared to THB278-280 (US$8.60-8.64) per kilogramme for the week of February 10-15.

For 70 pieces/kg size, prices have gone from THB265-269 (US$8.17-8.29) per kilogramme for February 10-15 to THB240-253 (US$7.40-7.80) per kilogramme for March 3-8.

Prices for 80 pieces/kg size have gone from THB252-258 (US$7.77-7.95) per kilogramme to THB223-230 (US$6.87-7.09) in the same time period.

In the Asia summer, more production will commence, leading to further price decline, according to a source. Although prices are coming down, they are still at very high levels historically.

As the weather in Thailand gets warmer, shrimp farmers in the south of the country are beginning major restocking in hopes of a turnaround season. There is a more positive outlook in the country, sources said.

Other areas are expected to follow suit, and some may have already started, said Jim Gulkin, founder and managing director of Thailand-based shrimp supplier Siam Canadian Foods.

"At this point, many farmers are very optimistic that Thailand's new crop will be successful," Gulkin said. "By late April, Thailand shrimp production should be improving, starting from small sizes, and it should continue to improve on other larger sizes until reaching peak production in June or July."

Farmers have good reasons for an improved outlook. New test kits, to detect early mortality syndrome (EMS), are now in place at many hatcheries and farms throughout the country, said Gulkin.