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26 Jun 2008

Agriculture

Shrimp Products, 2008: Price Slump…Exports Rife with Problems

คะแนนเฉลี่ย
In 2008, shrimp raisers and other related businesses have been plagued with problems related to production and marketing. There was a slump in prices in domestic market, whereas rearing tended to rise for animal feed, electricity and transportation. Meanwhile, Thai shrimp exports have been plagued with other problems, e.g., intense competition by low-cost producers in Vietnam and Indonesia. Even worse, our competitiveness has been undermined by several regulatory actions implemented by trade partners. KASIKORN RESEARCH CENTER (KResearch) forecasts that Thailand's shrimp export value in 2008 may be close to the year before, totaling USD2.4 billion, or rising only 0.9 percent, year-on-year. While processed shrimp shipments have posted higher growth, exports of fresh/chilled/frozen shrimp have experienced sharp declines. Given that exports of shrimp products make up 70.0 percent of total production, this plunge has in turn affected shrimp-related businesses. Shrimp farms and other businesses in the supply chain will thus have to adjust themselves in earnest to cope with these unfavorable factors in 2008.

Broadly speaking, exports of shrimp products recorded growth during the first five months of this year. Looking at each product category, however, only processed shrimp exports posted healthy growth, whereas exports of fresh/chilled/ frozen and canned shrimp slowed considerably. Looking ahead into the latter half of this year and into next year, business adjustments will be the key to reviving exports of shrimp products. To achieve this, emphasis should be placed on production that better meets market demand plus efficient shrimp farming management to ensure cost savings. On the marketing front, focus should be on expansion of exports for fresh/chilled/frozen shrimp and shrimp products to established markets, i.e., Japan and the European Union, as well as new market penetration.

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Agriculture