The U.S. accounting 32.4% and Japan ranked second with 31.8% followed by China and South Korea, accounting for 11% and 4.8% respectively
Important growth in shrimp exports to China
Thursday, September 19, 2019, 16:50 (GMT + 9)
VASEP reports that in the the first 7 months of 2019, among the top 3 main shrimp export markets of Thailand, exports to China increased by two figures of 80.3% and exports to the US and Japan decreased slightly respectively 8.5% and 6.6%. Thailand's shrimp exports to some EU markets such as the UK and Italy increased while exports to Germany, France and Mexico decreased.
From 2007-2012, Thailand is the leading producer and exporter of shrimp in the world. But since 2013-2017, Thailand has slipped to fifth place behind India, Vietnam, Ecuador and China. In 2018, Thailand ranked 6th in the world in shrimp export value, accounting for 6% of the world's total shrimp export value.
In the 10-year period (2009-2018), Thailand's shrimp exports grew well from 2007 to 2011 due to the rapid increase in domestic production while not subject to competitive pressure from rival suppliers. In 2012, Thailand faced EMS epidemic in shrimp farming on a large scale, the production dropped sharply, leading to a decrease in export turnover.
From 2012-2015, shrimp exports of Thailand decreased continuously and fell to the lowest level in 2015 due to the inability to recover production after the EMS epidemic and Thailand faced many barriers from import markets.
An Intensive 2.0 farm in Sam Roi Yot, Thailand (Photo: Stockfile)
After recovering in 2016, Thai shrimp exports dropped again. In 2018, Thailand shrimp exports dropped to the lowest level in a 10-year period (2009-2018).
In the first seven months of 2019, Thailand's shrimp exports reached USD 748.8 million, down 6.4% compared to the same period in 2018. Raw shrimp prices plummeted, affecting the shrimp export price of Thailand. Besides, Thailand is experiencing some disease problems and shrinking shrimp production area. The price competitiveness of Thai shrimp is also lower than that of India and Indonesia.
United States continues to ranked first
Among the top shrimp export markets of Thailand, the United States ranked first, accounting for 32.4% of the country's total shrimp export value. Japan ranked second with 31.8%. Followed by China and South Korea, accounting for 11% and 4.8% respectively.
In the first seven months of this year, Thai shrimp exports to the US reached nearly US $ 243 million, down 8.5% over the same period last year, exports to Japan reached nearly USD 237.9 million, down 6.6%. Export to China reached USD 82.6 million, up 80.3%.
In the US market, Thailand is reducing exports to this market due to high anti-dumping taxes, strong competition in prices and supply compared to other competitors such as Vietnam, India and Indonesia.
Strong competition in Europe
On the EU market, Thailand also reduced its exports due to high taxes compared to rivals in this market. Thailand's steamed and processed shrimp exported to the EU no longer enjoy GSP preferential status from 2014 so the tax rate increases to 20%. Frozen raw shrimp also lost GSP 4% from January 1, 2015 and Thailand had to pay 12%.
Thailand maintains good competitiveness in the Chinese market due to its low price advantage, increasing demand for Chinese shrimp imports.
Source: Kim Thu/VASEP