SHRIMPS

Seafood represents one of the most important commodities traded internationally. Shrimp is the main fish trade commodity in terms of value, accounting for approximately 20% of the total value of internationally traded fishery products (FAO 2000). Shrimp are grown in coastal areas of the tropics primarily for export and have become significant sources of foreign exchange. Shrimp production, like many other fishery products, represents a combination of captured and cultured product. The following shrimp product forms are regularly offered to the markets: live shrimp, frozen shrimp, dried shrimp, canned shrimp and fresh shrimp. Shrimp farming in coastal Southeast Asia is big business, generating substantial foreign exchange earnings for exporting nations, profits for entrepreneurs, and employment for workers in ponds and processing facilities. Earlier captured product was the dominant source of world output, but the share of total output represented by cultured production has been steadily increasing. In the early-to-mid 1980s, for example, cultured shrimp represented only about five percent of the total world production. In 2004, cultured production was 5.3 billion pounds which represented 46% of total world shrimp output. Harmful effects of shrimp farmingThe increased demand for shrimp in world markets has encouraged many developing countries to enter into the practice of shrimp farming which has had a significant impact on the world's mangrove forests because of over production. Thailand has become the world's leader in shrimp exports, and in turn, the greatest violator of mangrove conservation. The mangroves are essential to the region's ecosystem. They are the breeding ground for 80 to 90 percent of commercial seafood species, play an invaluable role in protecting coastal areas from erosion, storm damage and flooding, and are vital for coastal fisheries, sustainable wood products industries, and wildlife habitat. There is a high degree of biodiversity in species type for this region. The area is a veritable cornucopia of flora and fauna. Some species affected are shorebirds, crabeating monkeys, fishing cats, mud-skipper fish, sea turtles, dolphins, manatees, otters, and a host of fish, mollusks and crustaceans, as well assea grasses and corals. They also provide some of the most valuable land areas in the world for highly productive agriculture.

Thailand as an exporter of shrimp Thailand covers 514,000 square kilometers at the heart of Southeast Asia. It is bordered by Myanmar (Burma), Laos, Cambodia, and Malaysia. The Thai coastline stretches for 3,219 km along both the Gulf of Thailand on the Pacific side, and the Andaman Sea on

the Indian Ocean side. The west coast was devastated by the Southeast Asian tsunami in December of 2004, which swept across the Indian Ocean from its epicenter off Indonesia. Thailands water area is 2,230 sq km. Thailand's weather is ruled by the tropical monsoons, with a rainy season from June through October, and a dry season beginning in November. Average annual temperatures are a high of 38 C (100 F), with a low of 19 C (66 F). The mountains of northern Thailand tend to be much cooler and somewhat drier than the central plain and coastal regions. The Thai economy depends mainly on automotive and electronics manufacturing exports (19%), financial services (9%), and tourism (6%). About half of the workforce is employed in the agriculture sector, and Thailand is the world's top exporter of rice. The country also exports processed foods like frozen shrimp, canned pineapple, and canned tuna. Thailands natural resources include tin, rubber, natural gas, tungsten, tantalum, timber, lead, fish, gypsum, lignite, and fluorite. In 1995, Thailand became the number one seafood exporter in the world. Since 1995, processors in Thailand have shifted their business from simply processed items, such as producing frozen shrimp, to highly processed shrimp, such as panko ebi (fried Shrimp), tempura, and sushi shrimp. This occurred after serious shrimp disease problems (white spot) developed, causing Thai shrimp to become more expensive than shrimp from other countries. Thai processors could not compete against processors in other countries in producing frozen block shrimp so they shifted focus towards producing more highly processed products. In 1999, export of farmed shrimps earned Thailand US$2.2 billion. By 2000, seafood exports reached 1.4 million tons by weight .The total seafood exports, shrimp exports accounted for 32.4% by value. Thailands primary export markets are the U.S. and Japan. In 2001, fresh and frozen shrimp exports to the U.S. and Japan accounted for about 46% and 17% by weight. While shrimp exports to the U.S. have increased, fresh and frozen shrimp exports to Japan have decreased from 1995 (50,738 tons) to 2001 (24,883 tons). Exports of prepared and preserved shrimp products to both, the U.S. and Japan increased from 1997 to 2001. Exports to Japan increased from16, 472 tons in 1997 to 21,886 tons in 2000. Prepared and preserved shrimp products imported to Japan include sushi shrimp, tempura, and panko ebi (fried shrimp). Thailand is the main processing center for shrimp in the world. World shrimp exports, valued at around $12 billion, constitute nearly 17% of the $71 billion global seafood export market, in 2004 as per the FAO. In 2004, the United States imported 1.1 billion pounds of shrimp, valued at $3.68 billion. Japanese imports for the same year totaled 666 million pounds, valued at $1.94 billion. Thai frozen shrimp exports in the first five months of 2012 shrank by 2.2% to USD 552 million largely as a result of the drop in exports to EU markets. Exports to the EU, valued at USD 79 million, declined by 16%. The EU market is Thailands third biggest market after the USA and Japan. Thailands shrimp production was about 600,000 tons and export value was US$ 2.28 billion in 2007 major markets being USA, Japan, EU, Canada and South Korea.

Thailand solidified its position as the worlds top shrimp exporter in 2010, growing its already booming industry and taking the lead in international food safety and aquaculture practices. Thai shrimp exports totaled $2.8 billion from January to November of 2010, an increase of 11 percent in volume and 17 percent in value over 2009. Thai shrimp exports to the United States rose nearly 6 percent in 2010. American consumers and their insatiable appetite for the delicate crustaceans accounted for 45 percent of Thailands 400,000 tons of shrimp exports. In early May, 2012, the Thai government approved a budget of THB 2 billion (USD 66.6 million) to intervene in the market to prevent the sharp drop in prices of farmed shrimp. About THB 93.85 million (USD 3.1 million) will be used to subsidize interest rates for seafood processors to purchase 30 000 tones of vannamei from farmers at THB 135 (USD 4.4) a kg for size 60 pieces/kg..

Current Scenario-

In the fourth quarter of 2012, the supply of raw shrimp (coming from domestic production and imports) will be sufficient for processing and exporting due to modest demand for year-end holidays from huge importing markets. The shrimp demand this year is lower than that of the previous years.The price of raw shrimp will increase due to ending of the harvesting season in the fourth quarter and processors high demand of raw shrimp. Shrimp shipment to main markets is expected to stand still -Shrimp export to Japan depends much on Ethoxyquin problem. If Vietnam shrimp exporters continue to cope with this problem, shrimp sales to Japan in Q.IV will find it hard to report a positive growth. It is hoped that in Q.IV/2012, shrimp exports to the U.S. will hit US$127 million, an equal level to Q.III due to the U.S.s high shrimp inventories and large volume of shrimp importing from India and Ecuador. In the fourth quarter, demand for shrimp in EU market will hardly rebound. Although shrimp is European peoples favorite product in Christmas holiday, consuming demand for shrimp in the region, particularly countries in the southern Europe will be lower due to economic downturn. In the third quarter, China reported the economic growth of 7.4 percent and the growth rate of 7.7 percent was seen in the first 9 months of 2012. According to economists, Chinas economic growth in 2012 is expected to reach the rate of 7.5 percent. Thus shrimp exports to China will keep a positive growth in Q.IV.In the last three months of this year, shrimp exports to Australia are expected to remain positive results owing to stable demand. Australia is considered as a potential market of Vietnam shrimp this year.