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November 9, 2011
 
Thai Shrimp Weekly: Shrimp export faces disruption as flood threatens to overrun seafood province (week ended Nov 2)
 
An eFeedLink Exclusive
 

Price summary
 
Limited supply pushed shrimp prices up by THB5-7/kg this week in the main trading centre of Mahachai as harvests from surrounding provinces fail to make it to the market due to flooded roads.
 
However, prices could plummet from late this week if fears by the Federation of Thai Industries (FTI) of a massive flooding in Samut Sakhon, home to thousands of seafood farmers, processors and exporters, are proven correct.
 
The Mahachai shrimp market, also located in Samut Sakhon, which is about 35 kilometres from Bangkok, could be closed for weeks or even a month if hit by the flooding,  disrupting a major link in the shrimp supply chain.
 
Buying prices among exporters remain unchanged so far as they take a wait and see attitude at the current flood situation.
 
 
Market analysis
 
FTI has alerted members in the province that Samut Sakhon, which lies in the projected path of the overflowing Tha Chin River, that they face the prospect of severe inundation in a few days.
 
More than 5,000 factories, mostly in the seafood sector, operate in the province, employing more than 500,000 people. The country's number one seafood exporter, Thai Union Frozen Products (TUF), has its main plant in the Muang district of Samut Sakhon.
 
FTI estimates that damage to the province's industries, especially to the shrimp sector, could run up to THB150 billion should the flooding materialises.
 
"We expect the entire province will be hit by floods sometime this week and the water level might be higher than two metres in some areas," said Apichit Prasoprat, head of FTI's Samut Sakhon province and secretary of the central-region chapter.
 
"In a worst case, we project the floods will last about one month," Prasoprat said.
 
TUF president Thiraphong Chansiri said the company's premises remained dry so far, although preparations were in place in case of any eventuality. Sandbag barriers have been set up around the factory and they have several water pumps on standby, he said.
 
Another major seafood processor, Prantalay Marketing Co., has moved some of its stocks to a new depot and cold storage plant in nearby Samut Songkhram province.
 
"We've sped up operations to meet year-end orders and so far supplies of shrimp, mainly from the southern and the eastern regions, have not been disrupted," said Anurat Khokasai, the company's marketing and chief operating officer.
 
"But we are now concerned that increasing rainfall in the south will affect supply, as normally happens late this month." But Khokasai remains confident Prantalay could still meet its export target THB8.4 billion this year. He also project domestic sales to reach THB1.2 billion.
 

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

October 26

November 2

October 26

November 2

October 26

November 2

40 pcs/kg

165

165

166.00

166.00

220-230

220-230

50 pcs/kg

150

155

148.00

148.00

190-200

190-200

60 pcs/kg

135

135

132.00

132.00

180-190

180-190

70 pcs/kg

125

130

125.70

125.70

170-180

170-180

80 pcs/kg

115

122

118.00

118.00

160-170

160-170

90 pcs/kg

110

117

109.50

109.50

150-160

150-160

100 pcs/kg

100

105

101.00

101.00

140-150

140-150

Note: Farm-gate prices are THB10-15 lower than those at Mahachai market.
US$1=THB 30.65 (November 9, 2011)

 

 

 

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