December 21, 2020

Thai shrimp exports to fall 14% in 2020, association says

Thailand's shrimp exports are projected to drop 14% this year to 150,000 tonnes, with values down 21% to about THB44 billion (~US$1.46 billion), largely due to the COVID-19 pandemic and strong baht, according to the Thai Shrimp Association, Vietnam News Agency reported last week.

Somsak Paneetatyasai, president of the Thai Shrimp Association, says subsequent waves of outbreaks in many countries have dampened demand for shrimp for the Christmas and New Year period.

The association forecast in December last year Thai shrimp exports would recover to a 20% increase in 2020, in line with growing production.

However, for the first 10 months this year, Thailand's shrimp exports recorded 123,297 tonnes, down 9% year-on-year, with values down 11% to THB35.9 billion.

According to Somsak, Thailand expects lower output this year of only 270,000 tonnes, down 7% from 290,000 tonnes in 2019, largely due to shrimp diseases and weak demand during the pandemic.

He is optimistic about next year's prospects, forecasting the country's shrimp production and exports will both rise by 15% to 310,000 tonnes.

Domestic demand in 2021 is likely to surge, driven by the government's consumption stimulus measures mainly through the co-payment scheme, Somsak adds, saying that domestic demand is estimated to make up about 25% of overall shrimp production.

Somsak also says the key obstacle for the shrimp export industry is the Thai baht, which has strengthened by 11% from 2017, when the Thai baht averaged 33.68 to the US dollar. The currency's strength is a national-level issue the government needs to tackle, he stresses.