November 30, 2010
Thai shrimp exports to rise 5% this year
Thai shrimp exports this year are expected to rise by 5-6% to almost 371,000 tonnes worth US$2.78 billion, said the Thai Frozen Foods Association.
President Panisuan Jamnarnwej attributed the increase to competitors who are suffering from natural disasters, and have turned importers to buy from Thailand.
By year-end, shrimp exports will have reached 370,766 tonnes, with the value of US$2.78 billion representing an increase of 8-9% from last year.
However, in terms of baht, the export value will rise by only 3% due to the currency's appreciation, said Jamnarnwej.
He cautioned that the increase in exports was not an indicator of industry stability as food processors and exporters are still suffering heavy losses from baht appreciation and rising shrimp prices relative to the currency's value due to high market demand.
Fishmeal prices are also rising. Though most of the fishmeal is imported, prices have not come down in line with the weaker US dollar, so processors are unable to absorb the cost of raw materials imported for use in their export products.
Next year, the price of large shrimp is expected to increase from THB100 (US$3.31) per kilogramme (about 50 shrimp) to THB105 (US$3.47). However, the price increase for smaller shrimp (100 shrimps per kilogramme) could be greater, from THB50 (US$1.65) to THB115 (US$3.80) due to high foreign demand, Jamnarnwej said.
He said farmers would thus be encouraged to raise more small shrimp quickly and not allowing their farms to have time to recover. This increases the risk of shrimp diseases.
At the same time, the price increases for shrimp may force consumers to turn toward alternatives such as chicken, pork, and beef.
All these factors together could cause a drop of 5-6% in Thai shrimp exports next year while export value would also decrease due to the strengthening baht.
Thailand's main shrimp export market is the US, which consumes half of the country's output.
