However, since the GSP rates were reinstated by the EU this year, Thai shrimp exports to the area have increased by 211 per cent - totalling US$11.2 million (Bt430 billion) in the first four months of the year, after recording a drop of 54 per cent in 2003.

Thai shrimp exporters hope to increase their EU market share to 10 per cent in the next few years from the current share of less than 1 per cent.

The Kingdom's major rivals in the EU include Bangladesh, Indonesia, Venezuela, China, Vietnam, Finland, Denmark and Sweden.

The Commerce Ministry plans a rise in the country's annual shrimp export volume to 500,000 tonnes, with the EU market accounting for 30,000 tonnes. Global shrimp consumption is about 1.6 million tonnes annually.

Don Pramuswinai, Thai ambassador to Belgium, yesterday said exporters should focus more on Eastern Europe. "It will be very difficult for Thai shrimp exporters to reclaim their EU market share as there are many competitors, especially Vietnam," he said at a seminar titled "Opportunities for Shrimp Exports to the EU" in Bangkok.

He suggested exporters diversify their products and try to add value. As EU consumers prefer processed shrimp, exporters should serve a variety of shrimp products.

The EU's shrimp import demand is forecast to reach 860,000 tonnes this year, with Vietnam sending the biggest share of 360,000 tonnes.

Chutima Bunyapraphasara, commercial adviser and expert on the EU, said the government had three strategic plans to boost overall exports to Europe.

Firstly, the Commerce Ministry has hired a lobbyist for protecting the country's EU export benefits.

Second, private Thai companies and EU enterprises will set up a Thailand-EU Business Council this year with a view to closer interaction. Last, creating links with the EU members and using those countries as distribution centres for Thai exports.

The ministry targets a doubling of two-way trade to $52 billion by 2010, driven by the food sector. Thai-EU trade value is expected to reach $26 billion this year.

Pimpapaan Chansilpa, commercial adviser and an expert on shrimp marketing, said Thailand should focus on developing its logistics system to ensure quality.

Niwat Sutemechaikul, deputy director-general of the Fisheries Department, told shrimp farmers and exporters to concentrate on farm management to match EU food safety requirements, stressing traceability as mandatory.

Radek Maly, manager of CEPA Co, a shrimp importer in the Czech Republic, said European consumers demanded high-quality goods and competitive prices.

Petchanet Pratruangkrai

The Nation