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June 27, 2011

Thai Shrimp Weekly: Thai shrimp exports to Japan increase on tainted Vietnamese shrimp (week ended Jun 22, 2011)

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Price summary
 
Shrimp trading in Mahachai this week remains active, with stable price levels for large sizes but higher prices for smaller sizes. The Thai Frozen Foods Association's recommended shrimp prices for all sizes has remain unchanged, after marking down its prices for the last two weeks.
 
This week's Thai shrimp exports have increased after the Ministry of Health, Labor, and Welfare of Japan announced that it discovered two imported consignments from Vietnam containing antibiotic residues exceeding the allowed levels. One of the two consignments was found containing enrofloxacin at a concentration of 0.03ppm.
 
Local retail shrimp prices in every size and other aquatic fish still remain unchanged while other protein meat prices remain stable due to political forces before Election Day on July 3, 2011.
 
 
Market analysis
 
Vietnamese shrimp exporters to Japan have been seeking the help of state management agencies, saying that they may lose the Japanese market if the agencies do not assist them in controlling the aquaculture industry.
 
The call has been made by shrimp processing companies after Japan threatened to verify 100 percent of the shrimp consignments imported from Vietnam. Meanwhile, Japan remains the biggest shrimp export market for Vietnam, and shrimp exports account for the highest proportion in the total seafood export turnover of Vietnam.
 
Difficulties would force businesses to give up the Japanese market. According to the Vietnam Association of Seafood Exporters and Producers (VASEP), Japan now verifies 100% of all shrimp consignments imported from Vietnam to detect for the presence of trifluralin, and examines about 30% of shrimp consignments imported from Vietnam for the presence of enrofloxacin.
 
Under current Japanese laws, if Japan discovers one or more consignment of imports containing enrofloxacin residues, it will automatically raise the control level and will verify 100% of all imported consignments from Vietnam.
 
The warning has caused big worries to Vietnamese seafood exporters, who believe that antibiotics are added in the farming process, not in the processing phase for export. If government agencies do not assist in regulating the farming process, seafood exporters will have to examine the input materials, which will cost them a lot of money, and force them to make heavy investment in the verification process.
 
"Seafood companies have claimed that the antibiotics appear right in the farming, therefore, it is necessary to impose controls in the shrimp culture," a representative from VASEP said. "If enterprises have to spend money to examine the input materials for processing, the overly high expenses may force them to give up the Japanese market".
 
Japan is the biggest shrimp export market for Vietnam. In 2010, Vietnam's shrimp export turnover to the market reached nearly US$900 million, an increase of 19% over 2009.
 

White shrimp prices (in Thai baht) at Thailand's main markets

Unit of Measure: Thai Bhat

Shrimp size

Mahachai seafood market

Thai frozen foods association
benchmark price

Bangkok markets

June 15

June 22

June 15

June 22

June 15

June 22

40 pcs/kg

170

170

180.00

180.00

220-230

220-230

50 pcs/kg

155

155

151.70

151.70

190-200

190-200

60 pcs/kg

140

145

136.30

136.30

180-190

180-190

70 pcs/kg

135

140

131.30

131.30

170-180

170-180

80 pcs/kg

125

130

124.30

124.30

160-170

160-170

90 pcs/kg

115

120

112.90

112.90

150-160

150-160

100 pcs/kg

105

115

104.00

104.00

140-150

140-150

Note: Farm-gate prices are THB10-15 lower than those at Mahachai market.
US$1=THB 30.83 (June 27, 2011)

 


 
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