March 17, 2008

Thailand's shrimp exports to have zero growth rate
 

Thailand's shrimp exports in 2008 are targeted at 340,000 tonnes, same as last year due to threatened competitiveness from rising feed costs and appreciating currency.

The industry's production costs have rise 10-20 percent this year, according to Somsak Paneetatyasai, president of the Thai Shrimp Association.

Shrimp output for 2008 is forecast at 500,000 tonnes, down from 530,000 in 2007 as farmers have reduced production due to global economic slowdown. Despite so, exports to the EU are expected to increase to 45,000 tonnes this year from 30,000 tonnes in 2007.

To avoid risks from the appreciating baht, Thai producers have shifted focus from frozen products to processed foods, according to Udom Chariyavilaskul, vice-president of the Thai Frozen Foods Association. He added that Thai exporters are currently looking at opportunities in potential markets while trying to maintain their key markets such as the US and Japan.

The US is the biggest market for Thai shrimp exports, account for 50-60 percent. Japan accounts for 20 percent and the EU accounts 10 percent. Shrimp exports brought in US$2.15 billion for Thailand last year, down 3.5 percent from US$2.2 billion in 2006. However, the value is forecast to rise to US$2.6 billion due to expected shrimp prices recovery.