Thai tuna, shrimp export value drops but profits are up : September 29, 2014
Shrimp processors to import 40,000 tons of raw material this year to offset low Thai production figures
The export value of Thai tuna and shrimp during the first seven months of the year fell 2 percent to THB 50 billion (€1.2 billion/$1.5 billion) from the same period last year, but profit margin rose 7 to 10 percent due to lower raw-material prices.
Exports to new markets helped offset problems with the European Union market, reported The Nation.
Shrimp totaling about 40,000 metric tons was imported for reprocessing in Thailand, as the Thai supply for the whole year is likely to be only 200,000 metric tons.
Chanintr Chalisarapong, president of the Thai Tuna Industry Association (TTIA), said while the value of exports fell, there was a volume increase of 8 to 10 percent year-on-year.
Coupled with a 30 percent drop in raw-material prices, this resulted in a rise of 7 to 10 percent in profit margins, he said.
Poj Aramwattananont, president of the Thai Frozen Foods Association (TFFA), said Thai shrimp still faced problems due to Early Mortality Syndrome (EMS), which had caused a 42 percent decline in output from last year’s level.
Shrimp prices have fallen by as much as 30 percent due to the low output, which resulted in fewer Thai orders from shrimp importers around the world, he said.
Thailand is likely to import 40,000 metric tons of shrimp from India, Vietnam and Ecuador for local frozen-food factories to compensate for this year’s output shortfall, he added.