Bangkok: The Thai Shrimp Farmers Association is calling on the Department of Fisheries to urgently tackle the issue of declining shrimp prices, which could lead to total losses exceeding 1 billion baht this year.
According to Thai News Agency, the association, led by President Mr. Krachit Hemarak and representatives from 21 provinces, met with Ms. Thitiporn Hlaoprasert, Director-General of the Department of Fisheries, to discuss strategies to address the crisis.
Farmers are grappling with a combination of factors impacting the shrimp industry, including the conflict in the Middle East affecting costs and exports, seasonal price drops, and border trade issues. The association is advocating for the convening of the Committee for Sustainable Shrimp Industry Development by June 10th to devise comprehensive solutions. Proposals for assistance will be presented to Mr. Suriya Jungrungruangkit, Minister of Agriculture and Cooperatives.
The association has suggested that the government initiate a campaign to boost domestic shrimp consumption using funds from the Department of Internal Trade's farmer assistance fund. This initiative aims to remove at least 10,000 tons of surplus shrimp from the market within three months and allow farmers to sell shrimp at prices 20 baht per kilogram above production costs, alleviating short-term financial impacts.
Mr. Krachit also emphasized the need to enhance the role of the Shrimp Board, advocating for a clear regulatory framework and policy-making mechanism for the economically significant shrimp industry, akin to rice and rubber. In addition, there are hopes that upcoming trade negotiations between Thailand and Malaysia on June 8th will address trade restrictions impacting shrimp exports.
Yutthana Ratano, president of the Tha Thong Shrimp Farmers' Association in Surat Thani, highlighted the high production costs, including feed and energy, which are not covered by current shrimp prices. Joint studies indicate that shrimp prices remain 10-20% below production costs, necessitating prices at least 20% above costs for sustainable farming.
Mr. Yutthana warned that continued low prices could lead to liquidity issues for farmers, potentially causing them to cease operations and impacting the broader Thai shrimp industry. Predictions estimate cumulative losses of at least 1 billion baht by 2026 if prices remain below production costs, with discussions ongoing between the Thai Shrimp Farmers' Association and the Department of Fisheries.