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🇹🇭 Thailand /Economy & Trade

Industry groups act on shrimp prices after Malaysia ban

From Bangkok Post · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Thai industry groups are directly purchasing shrimp from farmers to stabilize prices after Malaysia suspended imports.
  • The suspension on June 1 caused shrimp prices to drop by 50-60 baht per kilogram, impacting farmers and related businesses.
  • The initiative aims to maintain market confidence and prevent further price declines, though challenges like disease and reduced export orders persist.

Thai industry groups have launched direct purchases of shrimp from farmers to counteract a significant price drop following Malaysia's suspension of imports. The move by the Thai Chamber of Commerce (TCC) and the Thai Frozen Foods Association aims to stabilize the market and restore confidence.

The goal is to maintain price stability, facilitate product distribution, and preserve market confidence both domestically and internationally.

— Poj AramwattananontChairman of the Thai Chamber of Commerce, explaining the objective of the direct shrimp purchase initiative.

Malaysia's suspension of Thai shrimp imports on June 1 led to a 50-60 baht per kilogram price decrease. This has directly affected shrimp farmers and could ripple through related industries, including feed manufacturers, processing plants, and exporters. The TCC's Agricultural and Food Coordination and Public Relations Centre can purchase over 100 tonnes of shrimp daily under an "antibiotic testing before shrimp auction" program.

Malaysia is a major shrimp export market for Thailand, and the suspension has a direct impact on shrimp farmers.

— Poj AramwattananontChairman of the Thai Chamber of Commerce, highlighting the significance of the Malaysian market.

Ekapoj Yodpinit, president of the Thai Shrimp Association, noted that Thailand previously exported about 3,000 tonnes of shrimp to Malaysia monthly. He believes the current initiative will help prevent further price erosion in the domestic market. The Commerce Ministry's efforts to redistribute shrimp from southern regions have also provided some relief.

With these challenges, as well as volatile production costs, farmers are considering whether to continue raising shrimp in the upcoming cycle, reduce the number of new shrimp in their farms, or temporarily suspend farming.

— Ekapoj YodpinitPresident of the Thai Shrimp Association, describing the difficult decisions facing shrimp farmers.

However, challenges remain. Yodpinit expressed concern over diseases, declining orders from major markets like the U.S., Japan, and China, and volatile production costs. These factors are causing farmers to consider reducing or suspending operations for the upcoming season. The association's earlier projection of over 250,000 tonnes in exports this year is now uncertain and likely to be revised.

As it has adversely affected that country, particularly restaurants that rely on Thai shrimp, as prices have increased since the suspension.

— Ekapoj YodpinitPresident of the Thai Shrimp Association, relaying information from a Malaysian source about the impact of the suspension on Malaysia.
DistantNews Editorial

Originally published by Bangkok Post in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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