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Thu, June 29, 2006 : Last updated 23:28 pm (Thai local time)



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Home > Business > Prices jump forecast for shrimp as industry suffers





Prices jump forecast for shrimp as industry suffers

The Thai Shrimp Association expects export price trends to increase as major producing countries like China struggle with extreme weather that has affected production.

Somsak Paneetatyasai, president of the association, said yesterday he had recently visited the main shrimp farm areas in southern China, including Guangzhou, Guangdong and Hainan, to survey the country's production. He found that Chinese production was expected to fall 10-20 per cent compared with 2005 due to natural disasters, flooding, heavy rains and drought.

The low supplies have prompted local prices to increase from Bt100 per kilogram (for the size that yields 60 crustaceans per kilo) in June 2005 to Bt160 today.

"China's meteorology department reported that the country was facing the heaviest rains in 200 years and they will damage not only farms, but also reduce consumption," Somsak said, adding that shrimp prices usually decline in China in June when new crops hit the market.

Somsak noted that China's falling shrimp production would directly benefit Thailand, which isn't facing similar weather problems.

But Thailand's shrimp industry is not in great shape either.

Escalating oil prices have resulted in fewer Thai vessels trawling for wild shrimp, reducing aggregate hauls by 50 per cent. Phoobet Chantanimi, president of the Thai Fisheries Association, recently expressed concern that fishermen had stopped going to sea.

 Last year, the country's total wild-shrimp haul reached 74,860 tonnes, and it is expected to drop to 37,430 tonnes this year.

 Thirawat Leepaisomboon, president of the Inland Farming Association, said fresh-water prawn farms were facing problems as well. Two viruses have spread quickly, damaging hatcheries and baby-shrimp farms. Some farms have imported breeder shrimp from abroad to keep operations going.

 Continued outbreaks of viruses will cause fresh-water prawn production to drop to 10,000 tonnes this year compared with last year's 29,000 tonnes, Thirawat said.

 "This year, 50,000 tonnes of both wild shrimp and fresh-water prawns will disappear from the market. These stocks are usually supplied directly to the domestic market," he said.

The Nation







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