Limited world supply to boost Thai shrimp exports

 

 

The current outbreak of infectious myonecrosis virus in shrimp farms in Indonesia and Brazil is likely to widen the export market for Thai shrimp, according to local exporters.

 

The virus, which reduces the appetite and stunts the development of shrimp, could benefit Thai exports, said Arthon Piboonthanapatana, secretary-general of the Thai Frozen Foods Association.

 

Indonesia is the world's second-largest shrimp exporter after Thailand. Indonesian products compete closely with Thai goods in major markets such as the US and Japan.

 

Last year, Indonesia sold 37,297 tonnes of shrimp products to Japan, with Thailand second in the market with sales of 36,000 tonnes. In the US market, Thailand led the industry with 176,870 tonnes of shrimp products, compared with 90,000 tonnes from Indonesia.

 

Arthon said Thai shrimp producers could increase their share of these markets, although price would be a key issue, adding that raw material prices remain strong as the baht strengthens and that these factors will lessen the competitiveness of Thai shrimp exports.

 

Local shrimp was priced this week at THB150 (US$4.633) for 40 head per kilogramme, up from THB140 (US$4.633) earlier this year. The Thai Frozen Foods Association forecasts exports of Thai shrimp this year at 405,541 tonnes - 243,324 tonnes of raw commodity and 162,216 tonnes of processed products.

 

Export revenue is expected to climb by 7.6% from last year to US$2.79 billion, of which US$1.503 billion from fresh shrimp and US$1.288 billion from processed products.

 

Srirat Rastapana, director-general of the Department of Export Promotion, said strong exports in the first two months this year suggest growth forecasts will be met.

 

Exports of chilled and frozen shrimp in first two months rose by 36% year-on-year to US$196 million in value, she said. In baht terms, the value rose 31% to about THB6.4 billion (US$197.71 million).

 

The infectious myonecrosis virus has prompted Thailand to ban imports of three types of shrimp from Indonesia and Brazil, Srirat said.