April 12, 2006

Thai shrimp exports expected to fall by a quarter this year
 

Thailand's shrimp exports this year may fall by 25 percent to 250,000 tonnes from 280,000 tonnes last year due to the Thai baht's appreciation against the US dollar and flooding in prawn farms in the country's southern region.

Somsak Paneetatyasai, president of the Thai Shrimp Association, said the government should provide assistance to farmers as massive flooding has damaged at least 1,900 shrimp farms late last year. 

He added that natural disasters and disease in other shrimp-producing countries have also reduced global shrimp supplies to 2.5 million tonnes from the normal 3 million tonnes, causing shrimp prices to climb higher.

To top it off, investment costs for Thai shrimp farmers has risen to the highest levels in five years and more farmers are sinking into debt as floods and higher petrol bills put a strain on financial resources, said Somsak. Most farms in Thailand have no power supply and must depend on gasoline-powered generators for their operations.