Three key associations of the Thai shrimp industry - the Thai Marine Shrimp Farmers Association, the Thai Eastern Shrimp Association and the Thai Shrimp Association - yesterday called for government support in stopping shrimp prices from falling, which they said was causing a chain reaction throughout the whole industry.

Surapol Pratuangtum, president of the Thai Marine Shrimp Farmers Association, said shrimp farmers had faced falling prices since April, causing the shrimp-farm industry to lose Bt5 billion, accounting for 25 per cent of the industry's total value.

"Some small shrimp farmers in the South and along the Eastern Seaboard have already shut down, due to the fall in prices. Unless declining prices are resolved, more shrimp farmers will totally disappear," he said.

A reduction in the number of shrimp farmers would have a direct effect on shrimp production and exports in the long run, said Surapol. The associations also predicted the industry's losses would increase to Bt10 billion if the price problem carries on through to the end of this year.

Thailand is the world's largest shrimp producer and supplier among 30 shrimp-producer countries. Total shrimp exports totalled Bt86 billion, or 338,410 tonnes, last year.

The export volume of shrimp rose 12.5 per cent to 80,000 tonnes in the first four months of this year, but the value increased only slightly, by 4.4 per cent to US$20.6 billion (Bt713 billion).

The shrimp price has fallen since April mainly because of oversupply, the strengthening baht and slowing consumer purchases in the United States, the major shrimp export market for Thailand.

Separately, the Thai Frozen Foods Association also called on the government to stabilise the baht, because the firmer baht was creating difficulties for shrimp exporters. Foreign buyers have pressured Thai exporters to reduce prices. Last year, Thai shrimp exports to the US reached 190,000 tonnes. The US accounts for 55 per cent of the total export volume of the Kingdom.

The shrimp price at the farm gate for big-sized shrimp has fallen gradually, from 135 a kilogram to Bt100, lower than the Bt105-per-kilogram production costs. At the same time, the price for small-sized shrimp has dropped from Bt80 a kilogram to between Bt50 and Bt60, compared with Bt70-per-kilogram production costs.

Surapol said shrimp farmers wanted the government to help raise the market price.

They also called on the government to provide financial support for shrimp farmers and exporters, because they faced price guarantees to the US market.

They asked for the government to negotiate with South Korea to decrease import tariffs on Thai shrimp, which face a 7-per-cent surplus rate compared with competitors. They also called on the government to promote Thai shrimp in new export markets.

Somsak Paneetatyasai, president of the Thai Shrimp Association, said the price fall was obstructing growth in the industry. The government must seek a solution to stabilise the shrimp price to help the industry.

To limit the price falls, he also asked the government to stimulate domestic consumption of shrimp.

The association reported that people in Thailand ate about 300 grams of shrimp a year, or about 5-10 per cent of the total shrimp production. The association wants to increase this to 1kg a year, or 15-20 per cent of total production.

Thailand can produce about 550,000 tonnes of shrimp a year. However, the falling price will force shrimp farmers to decrease production.

Petchanet Pratruangkrai

The Nation