January 14, 2013
Ex-farm prices in Thailand were up by as much as 17% last week, in part after a warning about supply shortage sent some packers placing orders more aggressively, a South East Asian trader told Undercurrent News.
Charoen Pokphand Group recently advised the Thai Frozen Foods Association (TFFA) that there could potentially be a supply shortage during the first quarter..
CP’s advice was based on the fact that several farms in southern Thailand that have been hit with multiple disease issues have had to rest their ponds for at least two months to clear out their ponds. This in turn means farmers are unable to run at full capacity, CP warned.
Even though this situation has not been officially verified, it has had a psychological effect on the market, with some packers trying to buy more aggressively as they fear a lack of stock, the South East Asian trader told Undercurrent.
“When those packers have to compete with others on some certain sizes, they have to raise their buying prices,” he said, adding: “Therefore, it is expected that prices from Thailand will remain steadily high during the first quarter.”
Prices last week were at THB 160 – 167 per kilo for vannamei of 60 pieces per kilo, headon shell-on (HLSO), according to data from packers by the same trader.
That is an increase of up to 17% on the previous week, when they traded at THB 143.
Vannamei of 70 pieces per kilo were at THB 147-156, an increase of up to 6-7.6% from the previous week (THB 136-145).
Sizes of 80 pieces per kilo were up by 10-13%, to THB 136 – 139, compared to THB 123.