December 22, 2010

 

Thailand foresees stable shrimp exports for 2011

Thailand is likely to export 400,000 tonnes of shrimp and prawns worth about THB100 billion (US$3.32 billion) in 2011, on stable supply and demand, the Thai Shrimp Association said December 15.

 

Thai export volume grew 11% to 355,211 tonnes in the first 10 months of this year, increasing 8% on-year to THB83 billion (US$2.75 billion) in value. Full-year exports are expected to reach 400,000 tonnes.

 

The association's president, Somsak Paneetatyasai, said traders and farmers would focus on improvements in quality and sustainability rather than quantity in order to stabilise prices.

 

"Exports next year will be unchanged from this year. Key players in the industry, namely farmers, traders, manufacturers and exporters, have to focus on safety standards in a bid to stabilise prices," he said.

 

In addition, the association is still worried about the continued economic crunch in the US, Japan and the euro zone, which are major import markets, besides which the baht's appreciation will affect the Kingdom's exports next year.

 

To ensure stable export growth, Somsak said companies should no longer rely mainly on the US, which is the Kingdom's biggest market. Sales to the US should be reduced from the current 46% of overall exports to 35%.

 

Japan accounts for 18% of Thai shrimp exports, the EU for 16% and Australia for 2%.

 

Overall US imports grew slightly in the first nine months of the year, by 0.17% to 386,833 tonnes. Thai exports to the US increased 5.45% to 135,850 tonnes during the period.

 

To ensure sustainable growth, Somsak said government agencies must have stringent control measures in place to prevent against any outbreak of IMNV disease. In particular, the import of broodstock should not be allowed.

 

Shrimp prices next year are expected to be as stable as this year's. The price for large produce will likely be THB155 per kilogramme (US$5.14; 50 units per kilo), and small shrimp will fetch THB125 (US$4.14; 70 units per kilo). Last year's prices were THB130-THB135 (US$4.31-$4.48) and THB110-THB115 (US$3.65-$3.81), respectively.

 

Somsak said that if prices were stable next year, demand would be unchanged. Thai exports should grow steadily in subsequent years after focusing on quality improvement to meet global concerns.

 

He added that despite an increase in minimum wages that will increase their burden, businesses should be able to manage their costs and maintain stable retail prices.

 

Thailand's shrimp and prawn cluster consists of 1.5 million farmers and labourers on a total farm area of 30,000 rai.

 

The association also reported that global production had increased by 6% to 2.3 million tonnes this year. Many producing countries have been affected by problems such as IMNV disease, flooding and oil spilled in the Gulf of Mexico.

 

Thai production will reach 640,000 tonnes, an increase of 14% from last year. Vannamei production is expected to total 635,000 tonnes, with black tiger prawns accounting for the remainder.