Industry groups act on shrimp prices

The Thai Chamber of Commerce (TCC) and the Thai Frozen Foods Association began direct purchases of shrimp from farmers on Wednesday to mitigate the effects of Malaysia's suspension of Thai shrimp imports.

Poj Aramwattananont, chairman of the chamber, said the initiative is coordinated through the chamber's Agricultural and Food Coordination and Public Relations Centre (AFC). The goal is to maintain price stability, facilitate product distribution, and preserve market confidence both domestically and internationally.

Malaysia is a major shrimp export market for Thailand, and the suspension has a direct impact on shrimp farmers, said Mr Poj. The situation may also affect related industries across the supply chain, including hatcheries, aquaculture feed manufacturers, shrimp aggregators, cold storage operators, processing plants, and exporters, he noted.

The chamber and its partners can purchase more than 100 tonnes of shrimp per day from farmers under the "antibiotic testing before shrimp auction" programme.

Ekapoj Yodpinit, president of the Thai Shrimp Association, estimated that before the suspension, Thailand exported up to 100 tonnes of shrimp to Malaysia daily, or about 3,000 tonnes per month.

He told the Bangkok Post that the initiative is expected to help stabilise shrimp prices in the domestic market, preventing further declines.

Following Malaysia's suspension of Thai shrimp imports on June 1, prices dropped by 50–60 baht per kilogramme.

The Commerce Ministry's measures to distribute shrimp from the South to other regions have also helped mitigate the impact of the suspension, said Mr Ekapoj.

Shrimp supply is likely to decrease by the end of this month, as it is the late shrimping season, he noted.

A Malaysian source informed Mr Ekapoj that Kuala Lumpur plans to expedite negotiations with Thailand on the suspension, as it has adversely affected that country, particularly restaurants that rely on Thai shrimp, as prices have increased since the suspension.

Mr Ekapoj also expressed concern about ongoing challenges in the industry, such as diseases and lower orders from key export markets including the US, Japan and China.

"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," he said.

Typically, farmers begin the next round of shrimp farming in June or July. It takes about 90 to 140 days for shrimp to be ready for sale.

In March, the Thai Shrimp Association anticipated exports of more than 250,000 tonnes this year if production exceeded 400,000 tonnes.

He said he is uncertain whether the country can achieve this target given the current outlook, with the projection likely to be reviewed next month.