The Australian government has recently released a Bio-Security Australia Policy, Memorandum reference: 2006/35, dated November 23, 2006, where an import risk analysis (IRA) on prawns and prawn products was sent to related agencies and other parties to sound out their opinions on risks from imports of prawns plagued with five pathogens, i.e., White Spot Syndrome Virus (WSSV), Yellowhead Virus (YHV), Infectious Hypodermal and Haematopoietic Necrosis Virus (IHHNV) and the Taura Syndrome Virus (TSV). The memorandum also expounds that shipments of prawns and prawn products must come from disease-free farming areas; only shelled/beheaded prawns are allowed into the Australian market; uncooked products are required to undergo a high level of processing, while cooked products require acceptable safety certifications and must be placed under preliminary quarantine control. A consultation period of 90 days is being allowed for trade partners to submit comments. The deadline for comments is February 21, 2007.
The draft report has prompted speculation that the Australian authorities have already banned the importation of prawns and prawn products as part of their bio-security measures against infected prawns imported into the country. The measures came into effect on December 4, 2006. Most local prawn farmers and dealers here assume that the ban has already been imposed on imported prawns and prawn products, though current shipments of prawns and prawn products remain unaffected. However, this draft report may pave the way for additional import requirements in the future. It is expected that Thai exports of shrimp and products to Australia will face with significant sanitary import barriers in the future. The volume of seafood consumed in Australia has dropped by 20 percent since August 2006 because consumers are worried about a rumor that imported shrimp used as bait were contaminated with a virus. As a result, Australia has had to implement strict regulations on imports of shrimp and products, while also seeking to protect their own shrimp industry and shrimp farming.
At present, Australia is not a major export market for shrimp from Thailand. A proportion of only 2-3 percent out of the total Thai export value of shrimp and products is sent there. Nevertheless, Australia is a market that Thailand aimed to expand exports into in order to diversify market risk.
Exports of shrimp and products to Australia also face tough competition from key competitors such as Vietnam, Singapore, New Caledonia and Myanmar. In addition, shrimp farming has expanded in Australia. As a result, Australia will reduce their dependency on imported shrimp and may become a net exporter. At present, export markets for Australia include Japan, China, Spain and Hong Kong. In addition, the Australian government was compelled to launch stricter controls on imports because their domestic shrimp farmers were facing price competition from cheaper foreign shrimp. Hence, market expansion into Australia will not be easy for Thai exporters because they will have to overcome many obstacles that lie ahead.
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