December 10, 2009

 

Thai shrimp export value skyrockets to US$3 billion

 

 

The Thai domestic shrimp industry has avoided the pitfalls of the global economic crisis, and export values are expected to increase to THB100 billion (US$3.01 billion) by 2010.

 

Thailand's shrimp exports during the first 10 months of this year leaped by 8% in volume to 320,855 tonnes and 12.24% in value to THB77.13 billion (US$2.2 billion), according to the Thai Shrimp Association (TSA).

 

According to TSA president Somsak Paneetatyasai, export shipments increased both in volume and value in all markets including the US. Thai shrimp is subjected to anti-dumping duties there and is thus less competitive than seafood from Ecuador and Vietnam, which enjoys almost zero import tariffs.

 

During this 10-month period, Thailand's shrimp exports to the US rose by 3.3% in volume to 155,431 tonnes and 7.52% in value to THB38.02 billion (US$1.14 billion). The US in 2008 imported a total of 564,240 tonnes of shrimp, 182,371 tonnes or 32% of which came from Thailand.

 

TSA executives pointed out that Thailand's export growth was partially due to a dramatic export drop by Indonesia as a result of a disease outbreak. Indonesia's farmed shrimp is estimated at just 180,000 tonnes this year compared with 230,000 tonnes in 2008.

 

In contrast, Thailand's farmed shrimp production is estimated at 540,000 tonnes for 2009: a jump of about 9% from 495,000 tonnes in 2008.

 

Somsak states that Thai shrimpers planned to cut local production by 20% to only 396,000 tonnes to cope with the expected shrinking demand due to the global economic crisis earlier in the year. Ironically, the world's shrimp consumption has been unaffected and is thriving.

 

Thai shrimp exports this year are estimated at 380,000 tonnes - about 5.8% higher than last year's 359,000 tonnes. Export value is estimated at THB94 billion (US$2.8 billion) compared with 2008's THB84 billion (US$2.5 billion).

 

Somsak expects shrimp exports next year to remain in the same range both in value and volume, estimating production at 540,000 tonnes as the country tries to control the local production to curb price swings.

 

He says exports next year will depend largely on foreign exchange, climate, the global economy, oil prices and how Jakarta copes with the disease outbreak in its local shrimp industry.

 

For exports to grow in 2010, the government is being urged to address the industry's problems, especially trade barriers such as the anti-dumping duties by the US.

 

Somsak urged the national government to improve its prevention and quarantine measures against low-quality shrimp imports, noting that the measures are necessary as regional agricultural trade swells once tariffs are eliminated under the Association of Southeast Asian Nations (ASEAN) free trade area agreement next January.