June 25, 2007

 

Thai shrimp farmers seek government aid as prices drop

 

 

Three Thai shrimp raising associations have asked the government for assistance after local shrimp prices fell sharply, plunging many shrimp farmers into debt.

 

The three associations - the Thai Marine shrimp farmers, Thai Eastern Shrimp Association and Thai Shrimp Association said the government should help exporters find new markets and offer loan assistance to exporters.

 

Shrimp prices, which have fallen below production costs for the past few months, are inflicting great difficulties among shrimp farmers, Thai Marine Shrimp Farmers Association president Suraphol Pratuangtum said.

 

Prices for white shrimp are now about 50-60 baht per kilogramme for 100 heads per kg, compared to 90 baht last year, while production costs averaged 70 baht per kg.

 

According to Dr Surapol, the market prices of Thai shrimp were also found to be lower than those of other exporting countries such as Vietnam and Indonesia for the first time in several years, despite the better quality of Thai shrimp.

 

Market prices for white shrimp in Vietnam, for instance, are now about 90 baht per kilogramme for 100 heads/kg.

 

More shrimp businesses may be facing closures if the situation remains unchanged, he warned.

 

The Thai government has been urged to offer more generous loans to shrimp exporters to expand liquidity, to assist in exporting Thai shrimp abroad and to find new markets for Thai seafood. 

 

Thai exporters had paid billions for C-bond guarantees over the past years in order to gain access to the

US market, resulting in tight liquidity. The US buys more than half of Thailand's shrimp exports.

 

The government has also been asked to pressure the South Korean government to lower shrimp tariffs.

 

Meanwhile, local producers have lowered production by more than 20 percent, said Dr Surapol Pratuangtum, president of the Thai Marine Shrimp Farmers Association.

 

Direct sales between producers and refrigeration operators have also been encouraged he said. Thailand is also holding shrimp fairs at home to boost domestic consumption.

 

Thailand consumes as much shrimp as it exports. According to the Thai Shrimp Association, domestic shrimp consumption was 30,000 to 40,000 tonnes last year. 

 

Thailand exported US$2.6 billion worth of shrimp last year. The kingdom is expected to export more this year but earnings are expected to be lesser due to the strong Thai baht.