December 21, 2011
Thai Shrimp Weekly: Shrimp supply seen to be tight in early 2012 (week ended Dec 15)
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Price summary
With the flood threat in Southern Thailand now over and logistic situation in flood-hit Central Thailand now back to normal, domestic shrimp supply has stabilised, causing prices to weaken.
The decline, however, was marginal. Except for the 50 pieces per kg size, whose price shrank THB6/kg, most shrimp sizes fell by just THB1-3/kg at the Mahachai wholesale market this week.
After last week's average drop of THB5/kg, the benchmark buying prices for members of the Thai Frozen Foods Association have quickly recovered.
Market analysis
About this time in previous years, Thai shrimp prices would start to rally on brisk domestic sales on the eve of the Christmas and New Year holidays. However, with foreign tourist arrivals down and tens of thousands of daily-paid workers out of job for weeks at the height of Thailand's severe flooding last flooding; local shrimp consumption seems to be on a slump.
Declining prices of pork and chicken meat are contributing to the slowdown in local shrimp demand.
Industry leaders, however, expect prices to improve in the next few months on lower supply. Early this month, when heavy rains started to fall in Southern Thailand at the start of the region's monsoon season, hundreds of shrimp farms advanced their harvests to avoid flood risks.
Southern Thailand supplies 70% of the country's total shrimp output and the advance harvests caused temporary oversupply in the market that sent wholesale prices falling by over THB10/kg at the time.
Unlike last year when most provinces in the South suffered severe flooding, the amount of rain this time around has been minimal. An official of a shrimp farmers association says that although understandable, the advanced harvests done by Southern shrimpers would have serious impact on domestic shrimp supply in the first quarter of 2012.
Hundreds of shrimp ponds in the South are now empty and will not be able to supply the market in the next few months. He, therefore, expects local supply to be tight in early 2012 that would lead to higher prices.
Higher export demand is expected to add pressure to next year's supply. Panisuan Jamnarnvej, president of the Thai Frozen Foods Association, said shrimp export next year would expand by 2.2%.
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White shrimp prices (in Thai baht) at Thailand's main markets | ||||||
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Unit of Measure: Thai Bhat | ||||||
|
Shrimp size |
Mahachai seafood market |
Thai frozen foods association |
Bangkok markets | |||
|
Dec 8 |
Dec 15 |
Dec 8 |
Dec 15 |
Dec 8 |
Dec 15 | |
|
40 pcs/kg |
172 |
-- |
180.00 |
183.30 |
220-230 |
220-230 |
|
50 pcs/kg |
164 |
158 |
157.50 |
162.80 |
190-200 |
190-200 |
|
60 pcs/kg |
149 |
148 |
142.60 |
147.00 |
180-190 |
180-190 |
|
70 pcs/kg |
140 |
137 |
134.40 |
136.40 |
170-180 |
170-180 |
|
80 pcs/kg |
133 |
127 |
125.00 |
126.20 |
160-170 |
160-170 |
|
90 pcs/kg |
120 |
118 |
117.20 |
117.60 |
150-160 |
150-160 |
|
100 pcs/kg |
115 |
113 |
105.00 |
-- |
140-150 |
140-150 |
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Note: Farm-gate prices are THB10-15 lower than those at Mahachai market. | ||||||
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