July 12, 2012

Vietnam re-exporting Thailand's low-priced shrimp

Thai traders are dissenting that Vietnam is buying up low-priced shrimps from Thailand for re-export , The Bangkok Post reports.

Bunjonk Nissapawanich, president of the Thai Eastern Shrimp Association, said the continuous decline in shrimp prices has hurt Thai farmers while benefiting Vietnamese shrimp exports.

Thai Frozen Foods Association statistics show 2,860 tonnes of shrimps from Thailand: fresh, chilled, frozen and prepared items were exported to Vietnam in the first four months of 2012, up by 302% on-year.

They were valued at THB681 million (US$21 million), up by 372%.

Bunjonk attributed the growth to low shrimp prices, which have been falling continuously from THB166 (US$5) or 50 heads a kilogramme early this year to an average of THB133 (US$4.19) in April and THB122 (US$3.84) this month, on-year drops of 19% and 26%, respectively.

Shrimp is an export-oriented industry, as 90% of the 600,000 tonnes produced annually are shipped abroad. The US, the biggest market for Thai shrimps, imported 29,426 tonnes from Thailand in the first four months, down by 31% on-year, worth THB8.5 billion (US$267 million), down by 27%.

Shipments to Europe totalled 14,191 tonnes, down by 12.3% on-year, worth THB4 billion (US$126 million), down by 0.87%. He did not provide figures, but the Vietnam Daily Magazine reported Vietnamese shrimp exports to Japan, the country's main market, increased by 12% on-year in January and February.

Vietnamese shrimp exporters garnered US$600 million from the Japanese market last year, 25.3% of their export revenue.