September 25, 2009
Thailand shrimp exports stable despite worldwide downturn
Thailand's shrimp industry remains in good shape despite the global downturn, with exports expected to grow both in volume and value this year.
Local shrimp production is projected to increase by 5 percent this year to 520,000 tonnes, with exports also up 5 percent to between 380,000 tonnes and 390,000 tonnes, said Somsak Paneetatyasai, president of the Thai Shrimp Association.
Somsak said the country's shrimp industry has been left unscathed by the global economic crisis, even though about 90 percent of production relies on exports.
He explained earlier in the year, the association planned to cut local production by 20 percent to only 396,000 tonnes to cope with expected shrinking demand due to the world crisis, but the world's shrimp consumption has remained strong.
Shrimp exports are expected to earn Thailand about THB89.25 billion this year, up 5 percent from THB85 billion last year, he said.
US is expected to remain the largest export market, accounting for about 50 percent to 55 percent of exports followed by Japan and Europe, which would each claim about 10 percent to 15 percent.
Strong shrimp exports are attributed mainly to the efficiency and quality of Thailand's shrimp production. Shrimp is the only agricultural product to record export growth in the first eight months of this year, with frozen and processed shipments up 6.5 percent to US$1.53 billion.
Somsak said that to ensure sustainable export growth, the government is being urged to help address the industry's challenges, particularly trade barriers such as current anti-dumping measures by the US government targeting Thai shrimp and allegations by the US about child labour.
The government is also being asked to manage baht exchange rate to improve exports, and to open new markets for shrimp exports to diversify risk.
Pinyo Kiatpinyo, president of the Federation of Shrimp Farmers Co-operatives of Thailand, also urged the government to ensure fair competition between small-scale and larger farmers and to develop a shrimp fund to improve access to finance by small and medium-scale farmers.
