November 13, 2008
Thai Shrimp Weekly: Price drop marginal as market fears supply disruption (week ended Nov 12, 2008)
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Price summary
Gloom continued to dominate the Thai shrimp industry this week as the price freefall continued for the sixth straight week both in open trading at the wholesale shrimp centre in Mahachai and in the buying rates among the country's seafood processors.
Unlike in previous weeks, this week's fall was minimal - only about THB2/kg each across all shrimp sizes. The rate of fall the past several weeks was about THB7/kg for each shrimp size.
Shrimp prices at public markets, however, didn't seem to have changed from last week's level.
Market analysis
Mahachai dealers said the price fall was not as much in this week's trading because of worries over possible supply disruption in the coming few weeks after the Meteorological Department warned of heavy downpours and possible floods in the country's southern provinces where thousands of shrimp farms are located.
The weather-forecasting office said the provinces of Chumphon, Suratthani, Nakhon Si Thammarat and Phattalung should brace for floods in the next 12 days with the onset of the monsoon season in these areas. The big bulk of the country's shrimp supply comes from these provinces.
With no end in sight for the current price depression, farm groups have revealed plans to cut down shrimp production by 10-20 percent. The planned cuts, to be implemented before the year is over, are meant to stem further drops in shrimp prices, according to Somsak Paneetatyasai, president of the Thai Shrimp Association.
During the last six weeks, he said, the price of Thai shrimp dropped 15 percent on-year. Should prices improve within the next few months, farmers would quickly resume normal production, he said.
Shrimp feed prices, meanwhile, dropped by 5 per cent during the week. The president of the Thai Feedmill Association, Pornsilp Patcharintanakul, said feed producers decided on the cut unilaterally on account of cheaper raw materials. Farmers, however, said the cut was primarily dictated by sluggish demand as farmers have been cutting down production for months now because of the prevailing price depression.
|
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 |
Bangkok markets | |||
|
　 |
Nov 5 |
Nov 12 |
Nov 5 |
Nov 12 |
Nov 5 |
Nov 12 |
|
40 pcs/kg |
　- |
　- |
129.00 |
127.10 |
-　 |
-　 |
|
50 pcs/kg |
112 |
110 |
114.90 |
112.20 |
160-175 |
150-165 |
|
60 pcs/kg |
100 |
98 |
105.10 |
102.20 |
150-160 |
140-150 |
|
70 pcs/kg |
93 |
91 |
99.50 |
96.60 |
130-140 |
120-130 |
|
80 pcs/kg |
90 |
88 |
94.10 |
92.10 |
120-130 |
110-120 |
|
90 pcs/kg |
87 |
84 |
88.90 |
86.60 |
110-120 |
100-110 |
|
100 pcs/kg |
82 |
80 |
-　 |
-　 |
100-110 |
90-100 |
| Note: Farm-gate prices are THB10-15 lower than those at Mahachai market. US$1=THB 34.980 (Nov 13) | ||||||
