Shrimp will bounce back

Shrimp will bounce back

Frozen-foods exports are expected to grow by 29.6% next year thanks in part to recovering shrimp shipments.

The Thai Frozen Foods Association projects shipments will hit 130 billion baht in 2015, up from an estimated 100 baht this year.

Shrimp production is expected to recover to 300,000 tonnes with 80 billion baht worth of exports.

President Poj Aramwattananont said the Thai frozen-food industry had encountered a spate of crises — a shrimp shortage due to an epidemic of early mortality syndrome (EMS), more stringent inspections to prevent illegal unreported and unregulated fishing in the seafood sector, the termination next month of EU tax privileges under the Generalised System of Preferences (GSP) and human trafficking allegations.

"We hope the new Fisheries Act, which will require all fishing vessels to register their boats and workers, will help to tackle the allegations," he said.

"Our producers themselves should upgrade to processed foods and focus more on premium consumers."

The Thai Shrimp Association (TSA) recently said the shrimp industry was expected to end this year with production of only 230,000 tonnes due to EMS, with exports of only 150,000 to 160,000 tonnes worth 60 billion baht.

In the first 10 months of this year, Thailand exported 130,000 tonnes, down by 26% year-on-year, valued at 51 billion baht, down by 8%.

The TSA predicts Thailand's shrimp production will recover to between 250,000 and 300,000 tonnes in 2015, with exports of 180,000 to 200,000 tonnes worth 75-80 billion baht.

EMS was first detected on a shrimp farm in China in 2009, then moved through Vietnam before reaching Thailand in mid-2012.

The outbreak has severely damaged the Thai shrimp industry and exports of related products.

Before the disease, Thailand produced 500,000 to 600,000 tonnes of shrimp annually.

TSA president Somsak Paneetatyasai said Thailand would have to monitor the situation following the termination of EU tax privileges under the GSP from this coming Jan 1.

The EU tariff on Thai shrimp will then triple to 12%.

To ease the impact, the TSA is urging the government to accelerate free trade talks with the EU and tackle the human trafficking issue.

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