December 17, 2008
Thailand to cut shrimp output by 20 percent
Shrimp farmers in Thailand will decrease production by 20 percent in response to the global economic crisis.
The price, however, is not likely to drop as local shrimp farmers cut their production by 20 percent while increasing production efficiency to meet standards.
Thai Shrimp Association (TSA) president, Somsak Paneetatyasai said Thailand currently can produce 490,000 tonnes yearly and export price was satisfactory at 231 Thai baht (US$6.67) per kilogramme.
The decrease was to stabilise production at about 390,000 tonnes yearly to ease prices and profits amid concerns in Thailand's key export markets like the US, where orders dropped by 4 percent from January through October 2008.
Japan and Australia are also reducing their imports of Thai shrimp.
TSA believes that the shrimp export market has an opportunity to grow in the future because of lower production cost and being part of consumption, particularly in the fast food market which is the new foreign market for Thai shrimp.