December 30, 2013

Thailand's Jan-Oct shrimp export down 38.4% due to EMS

The Thai Shrimp Association (TSA) has estimated THB50 billion (US$1.52 billion) in reduced exports and opportunity loss this year due to the epidemic of early mortality syndrome (EMS) that has hit the country.

President Somsak Paneetatyasai pegged shrimp exports for 2013 at 200,000 tonnes worth THB60-70 billion (US$1.8 billion-2.1 billion).

For January-October of this year, 175,713 tonnes of shrimp were exported, a sharp drop of 38.4%. Export value during the period fell by 28.9% to THB56.3 billion (US$1.7 billion). The decline was due mainly to a heavy drop in shrimp production, to between 250,000 and 300,000 tonnes this year from 540,000 tonnes last year due to EMS. Peak production was 640,000 tonnes in 2010.

In 2012, Thailand shipped 350,000 tonnes of shrimp worth THB110 billion (US$3.3 billion). But despite the sharp export drop, Thailand remains the world's leading shrimp exporter this year, said Somsak, while the US market remains its key export market, although they've now lost the no. one shrimp exporter title in that market to India.

The TSA said the sharp reduction in output has also resulted in a surge in shrimp prices, with local prices having doubled to THB270 (US$8.19) for a size of 70 shrimp per kilogramme.

Somsak said with production estimated to recover to as much as 320,000 tonnes next year, exports are also expected to see an increase of 20% in both volume and value based on an exchange rate of THB32 to the US dollar.

"Thailand will likely have its tax privileges under the Generalised System of Preferences (GSP) extended for another year," Somsak added.

The shrimp agencies like the Thai Marine Shrimp Farmers Association, the Thai Eastern Shrimp Association and shrimp farming clubs in Surat Thani, Chanthaburi, Pattani, Krabi and Trang provinces submitted in July a letter to the local EU delegation calling on the grouping to extend its GSP tax privileges too, citing the huge industry losses stemming from EMS.

Thai processed shrimp is scheduled to lose its EU GSP privileges on January 1, which will see the import tariff increase to 12% from 7%.