September 7, 2010

Thai shrimp prices rise significantly in July

Thailand's shrimp prices on the global market rose significantly in July due to unusually hot weather and lower supplies from Indonesia, Vietnam, Brazil and China, all faced with shrimp disease outbreaks.

According to the President of Thai Shrimp Association (TSA) Somsak Paneetatyasai, oil leakage problem in the Gulf of Mexico also affected shrimp prices in the US market, bringing it up 30% in August.

Shrimp is expected to continue its uptrend until the end of this year with an estimated export volume of 4 million tonnes, up by 20% from last year.

Somsak is confident that the export value of shrimp will exceed THB100 billion (US$3.20 million), adding that even China has to buy from Thailand. He noted however, the government controls the Thai currency from appreciating too much. The present value is considered optimum.

In addition, TSA predicts that global demand for shrimp will continue to grow next year but has advised shrimp producers to monitor news closely because Thai shrimp prices will fall once Indonesia and Vietnam rejoin the fray.

Thailand is also at a competitive disadvantage to Vietnam which is implementing a currency devaluation policy.

Meanwhile, in its efforts to draft its second strategic plan for the shrimp industry, Thailand's Fisheries Department will shift its focus on managing shrimp exports during 2012.

Some of the essential elements of the plan include upgrading shrimp farm standards to meet new global regulations, creating new potential farm sites for broodstock breeding, strengthening post-harvest management for added-value shrimp products as well as generally improving market potential throughout.

The plan also views research and development (R&D) with great importance, such that it now includes laying out network cooperation for R&D within the industry.