It is expected that Thailand's frozen and processed shrimp exports will grow perhaps 3-7 percent YoY in 2013, a substantial rebound from 2012 when those shipments suffered the steepest contraction in almost 10 years at 14 percent YoY. That recovery should be supported by steady economic improvements seen in the US and Eurozone, being major shrimp markets, plus easing labor problems in the Thai shrimp and seafood processing industry now with more stringent good labor practices (GLP) and efforts in tackling shrimp diseases.
Thai shrimp exports to Japan in 2013 – especially processed shrimp products – should continue to do well. We remain Japan's largest supplier, thanks to our shrimp quality and sanitary standards that are widely accepted by Japanese consumers. It is expected that Thai frozen and chilled shrimp exports sent there will outperform rivals, e.g., Vietnam and Indonesia, because Japan has stopped such imports from India, one of their main sources previously, following the discovery of banned antibiotic residues in shrimp imported from there.
The Thai shrimp industry may encounter certain risks that could affect operating costs and our price competitiveness ahead. Among these would be the possible loss of EU GSP benefits and imposition of countervailing duties (CVD) by the US, as well as the Baht's appreciation and labor shortages in the industry here.
As a result, Thai shrimp farms and processors will have to monitor the above issues very closely. To reduce rising operating costs, they may need to undertake stricter management of processing and freight costs, as well as adopting forex-hedging tools vis-à-vis international sales contracts. They will also need to improve shrimp quality to meet market demand and focus on value-added exports, e.g., ready-to-eat products. They should place a priority on improved product quality and processing standards, as well as promote international recognition of their brand names.
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