December 18, 2017

Thai shrimp industry seen to fully recover by 2020

Thailand was the leading shrimp producers in the world back in 2012. That year, however, it was dealt a devastating blow when the early mortality syndrome (EMS) disease hit its shrimp farms.

Today Thai shrimp production has been cut by more than 50% from its peak in 2012, when production reached 640,000 tonnes. It now produces only 300,000-310,000 tonnes, a slight recovery from the low 200,000-tonne output per annum between 2012 and 2015.

Thailand is still in a recovery mode. Meanwhile, it has been overtaken by India as the world's top producer of shrimp.

Full recovery of the Thai shrimp industry will only be realised by 2020, according to the managing director of the seafood trading firm Siam Canadian Group, James Gulkin, as reported by the Bangkok Post.

"Production dropped significantly in Thailand, but the problems that affected it in 2012 have been mostly resolved, and the industry is growing again," Gulkin was quoted as saying.

While India has beaten Thailand, Indonesia and Vietnam have experienced strong growth. All three have filled the supply gap left by Thailand.

Last year, India's shrimp production totaled almost 500,000 tonnes. Shrimp production in Vietnam in the first five months topped 144,000 tonnes, a tremendous 46% growth over the final period of 2016, and is set to surpass Thailand's output this year.

Nevertheless, according to Gulkin, Thailand has benefited from a more cohesive market, led by leading food producers CP Group and Thai Union. —Rick Alberto