The agribusiness knowledge provider

December 21, 2011
 
Thai Shrimp Weekly: Shrimp supply seen to be tight in early 2012 (week ended Dec 15)
 
An eFeedLink Exclusive        
 
 
Price summary
 
With the flood threat in Southern Thailand now over and logistic situation in flood-hit Central Thailand now back to normal, domestic shrimp supply has stabilised, causing prices to weaken.
 
The decline, however, was marginal. Except for the 50 pieces per kg size, whose price shrank THB6/kg, most shrimp sizes fell by just THB1-3/kg at the Mahachai wholesale market this week.
 
After last week's average drop of THB5/kg, the benchmark buying prices for members of the Thai Frozen Foods Association have quickly recovered. 
 
 
Market analysis
 
About this time in previous years, Thai shrimp prices would start to rally on brisk domestic sales on the eve of the Christmas and New Year holidays. However, with foreign tourist arrivals down and tens of thousands of daily-paid workers out of job for weeks at the height of Thailand's severe flooding last flooding; local shrimp consumption seems to be on a slump.
 
Declining prices of pork and chicken meat are contributing to the slowdown in local shrimp demand.
 
Industry leaders, however, expect prices to improve in the next few months on lower supply. Early this month, when heavy rains started to fall in Southern Thailand at the start of the region's monsoon season, hundreds of shrimp farms advanced their harvests to avoid flood risks.
 
Southern Thailand supplies 70% of the country's total shrimp output and the advance harvests caused temporary oversupply in the market that sent wholesale prices falling by over THB10/kg at the time.
 
Unlike last year when most provinces in the South suffered severe flooding, the amount of rain this time around has been minimal. An official of a shrimp farmers association says that although understandable, the advanced harvests done by Southern shrimpers would have serious impact on domestic shrimp supply in the first quarter of 2012.
 
Hundreds of shrimp ponds in the South are now empty and will not be able to supply the market in the next few months. He, therefore, expects local supply to be tight in early 2012 that would lead to higher prices.
 
Higher export demand is expected to add pressure to next year's supply. Panisuan Jamnarnvej, president of the Thai Frozen Foods Association, said shrimp export next year would expand by 2.2%.
 

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

Dec 8

Dec 15

Dec 8

Dec 15

Dec 8

Dec 15

40 pcs/kg

172

--

180.00

183.30

220-230

220-230

50 pcs/kg

164

158

157.50

162.80

190-200

190-200

60 pcs/kg

149

148

142.60

147.00

180-190

180-190

70 pcs/kg

140

137

134.40

136.40

170-180

170-180

80 pcs/kg

133

127

125.00

126.20

160-170

160-170

90 pcs/kg

120

118

117.20

117.60

150-160

150-160

100 pcs/kg

115

113

105.00

--

140-150

140-150

Note: Farm-gate prices are THB10-15 lower than those at Mahachai market.
US$1=THB 31.24 (Dec 21, 2011)

 


 
All rights reserved. No part of the report may be reproduced without permission from eFeedLink.
Share this article on FacebookShare this article on TwitterPrint this articleForward this article
Previous
Subscribe To eFeedLink 
Copyright ©2017 eFeedLink. All rights reserved.
Find us on FacebookFind us on Twitter