October 28, 2009

Thailand's value of shrimp exports are expected to rise during the rest of this year and into the next.

 

The Thai Shrimp Association predicted that shrimp exports will grow by 5 to 10 percent during next year as growth of shrimp exports will depend a great deal on currency exchange and value of Thai baht.

 

For every one-baht appreciation against a US dollar, the price of shrimp per kilogramme will decrease by 10 baht.

 

Somsak Paneetattayasai, chairman of the Thai Shrimp Association, said shrimp exports during the fourth quarter of this year will continue to improve as orders are coming in as usual.

 

Shrimp exports in August increased by 14 percent but in September the export value posted a smaller per cent due to strong value of the baht.

 

During the fourth quarter of this year, currency exchange will continue to be an opposing factor for shrimp exporters.

 

The association predicts that the value of shrimp exports will stand at approximately 100 billion baht (US$2.98 billion) by the end of this year.

 

It has been predicted that export value has increased by 5 to 10 per cent from the previous year, which was valued at 85 billion baht.

 

The association also predicted that value of shrimp export in 2010 will likely grow in the same range--around 5 to 10 per cent.

 

The value of orders placed during the first quarter of next year is crucial to growth of shrimp exports.

 

If buyers have low stock and high liquidity, they will buy more shrimp from Thailand.

 

In 2010, Somsak said another factor that requires close observation is the price of crude oil in the world market.

 

The high price of oil will make an impact on inflation rates in countries that order shrimp from Thailand and it could lead to drop in the demand for shrimp.

 

The high oil prices, which will increase the costs incurred by fisheries, combined with campaigns to conserve natural resources may result in a positive impact on Thailand's shrimp farming industry.

 

Somsak said the world market will depend more on farm-raised shrimp in the future.

 

At present, 50 percent of the total supply for world consumption of shrimp comes from fisheries, while the other half comes from farms.

 

Somsak commented that the most crucial factor for Thailand's shrimp export industry over the next year is currency exchange.

 

The Thai Shrimp Association expects that the value of Thai baht is likely to become stronger.

 

The current value of Thai baht, which moved above 33 baht, is already considered too strong for the industry when, in 2008, the value of baht against US dollar was at 37 baht per US dollar.

 

The association would like to urge the government to step in and keep value of Thai baht at a value that is optimum for Thai economy.

 

Thai shrimp exporters plan to find new markets for their products in an effort to decrease their dependency on orders from Australia and Russia.

 

Somsak revealed that Russia has been ordering more shrimp while China has decreased their shrimp exports.

 

The association expects that shrimp exports of Thailand are likely rise over the next three years.

 

Somsak also suggested a joint collaboration between exporters, shrimp farmers and the public sector, in order to enhance the competitiveness of Thailand in this industry.

 

US$1 = THB33.45 (Oct 28)