January 5, 2005

 

 

Thai Shrimp Exporters Geared For Record Year

 

Shrimp exporters in Thailand are ready for forecast record sales of 300,000 tons worth Bt100 billion this year. This comes after business dropped last year due to the threat of countervailing duties by the US and exclusion from concessionary duties by the EU.

 

According to Charoen Pokphand Foods Plc president and CEO Adirek Sripratak, a cold storage facility would be completed by May at a cost of Bt2 billion - Bt3 billion to help increase shrimp production and exports.

 

"So far, Thailand has focused on breeding white shrimp rather than black tiger prawns due to rising demand. White shrimp farms also have a high yield ¨C four tons per rai. We have now integrated the farming of white shrimp from breeders through to shrimp products," Adirek said.

 

Charoen Pokphand Merchandising Co president Pisit Ohmpornnuwati cited three factors supporting record exports this year: lower US anti-dumping rates compared to China and Brazil; the expected reinstatement of trading privileges by the EU; and rising demand from international fast food and restaurant chains.

 

The company is an export unit of Charoen Pokphand Foods.

 

The US Commerce Department announced final anti-dumping rates on December 20, subjecting Chinese shrimp imports to duties of 112.81 per cent and Brazilian shrimp to 10.40 per cent.

 

US buyers are expected to purchase more Thai shrimp, which are subject to 6.03 per cent. China and Brazil, the major rivals of white shrimp exports to the US, are expected to lose a combined 100,000 tons in exports, with Thailand hoping to pick up half of the shortfall.

 

The European Union is expected to announce in the middle of this year that Thai shrimp imports are covered by the generalised system of preferences after a four-year lapse, in which case Thai shrimp exports are expected to soar to 50,000-60,000 tons compared with just over 5,000 tons last year.

 

Shrimp is also seen as an alternative to other food products.

 

"Consumption of beef and chicken is sliding due to the mad cow disease and bird flu outbreaks. As a result shrimp is a good alternative," Pisit said.

 

Orders from McDonald, Pizza Hut and Burger King account for 20 per cent of Charoen Pokphand Merchandising Co's total export revenues.

 

Last year, the country's total shrimp export target was 230,000 tons worth Bt70 billion - Bt80 billion. CP is expected to enjoy 13-14 per cent of total shrimp exports by volume this year.

 

Pisit said CP's farms would concentrate on reducing the use of antibiotics while incorporating environmentally safe practices to meet importer requirements. These measures are also intended to promote the company's cost control policy.

 

This year is also expected to be positive for the chicken industry, with exports jumping by 40-50 per cent to 300,000-320,000 tons worth Bt35 billion to Bt40 billion, thanks to a shift in shipping processed products rather than fresh meat.

 

The chicken export target was 200,000 tons last year.