Thai shrimp farmers’ focus on small sizes makes 200,000t ‘optimistic level’ for 2014 Top Thai shrimp sector sources now see 200,000 metric tons as an optimistic level for 2014 production as farmers focus on small sizes, after first half output declined 38% to 82,050t. The level for the first half in 2013, when total production for the year dropped to 250,000t, was 132,921t. In addition to the focus on good profits on small sizes by farmers, diseases such as early mortality syndrome (EMS), whitespot syndrome and white feces are still hampering farmers, sources said. “We expect the second half of 2014 will improve 25-40% from the first,” Rittirong Boonmechote, managing director of Thai Union’s shrimp division told Undercurrent News. Total 2014 production is expected to be about 200,000t, minus or plus 10%, he said. “This is still a drop of 15-20% on 2013. We do feel, however, that the worst is over and production should pick up in 2014.” This is a moderately more optimistic viewpoint than one given by Panisuan Jamnarnwej, of the Thai Frozen Foods Association (TFFA). After the all time low of 2013, “200,000t for 2014 is an optimistic level”, he said, speaking at the Aquaculture Roundtable event held in Phuket, Thailand, on Aug. 20-21. Satasap Viriyanantawanit, country manager for Thailand for Siam Canadian Foods, echoes this viewpoint. “I am afraid Thailand may not reach 200,000t because of high prices on small sizes. In addition, there seem to be some regular diseases that either kill shrimp or make them sick and not grow as they should, such as white spot, white feces, even EMS in some areas,” he told Undercurrent. TFFA and many other packers are convinced that the second half output in 2014 will not beat the first one, it will be more or less the same, he said. This would leave Thailand finishing the year on around 165,000t, which would be down 71% from the peak production year of 640,000t, in 2010 It was previously expected that the second half output would beat the first, said Viriyanantawanit. “However, the problem is that shrimp prices on small sizes are always expensive, very profitable for farmers, due to consistent and strong demands from some big packers to fulfill their need for pending orders,” he said. On average, the main size from Thailand is between 100 and 120 pieces per kilogram for whole shrimp, which is very small, he said. Smaller sizes of shrimp, of course, bring down tonnage volume. “It used to be that black tiger was two bites for one shrimp. Then, vannamei became one bite, one shrimp, very convenient. Now, it is more like two shrimp for one bite,” said Jamnarnwej, of the shift in sizes from the Thai farmers. Thai farmers and processors have made various other shifts in 2014, said Jamnarnwej. “How has the Thai industry has coped with EMS since late 2011? By reducing the number of ponds stocked; early harvesting to minimize risk; small sales with a short lead-time; focus on small sizes; and reducing processing capacity.” It is shifting the industry to think more and more of value-added product, to use products that have, say, 60% shrimp, said Thai Union’s Boonmechote. “That is the way things will go, more value-adding and more automation. We are developing new products every day, but this is an area that we have to push more on and learn from.” This will mean more consolidation in the Thai shrimp sector and also around the world, too. “We have to look beyond Thailand,” he said. TFFA’s Jamnarnwej gave an example of how the production drop has hit Thailand’s sales in the US. “Thailand had 21% of the US market in 2012 and this went to 10% in 2013. Going back further, it went from 35% in 2010 to 28% in 2012 to 25%,” he said. Tough first half The first half of this year, Thailand was suffering from poor climate conditions, which was unhealthy for shrimp farms, with long, hot summers and droughts, said Siam Canadian’s Viriyanantawanit. This caused a lack of freshwater to manage the farms. “The salinity level in the water was high and it had direct relationship to the bacteria level. The higher salinity, the higher bacteria level,” he told Undercurrent. “Bacteria caused EMS and other diseases. The first half of this year was not quite successful, as a result.” undercurrentnews/2014/08/25/thai-shrimp-farmers-focus-on-small-sizes-makes-200000t-optimistic-level-for-2014/
Posted on: Tue, 26 Aug 2014 07:12:44 +0000
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