31
APR2017 FOOD FOCUSTHAILAND
SCOOP
Processedfisheryand aquaticanimal exports
will increase as some external issueshave eased
Currently, shrimp and canned tuna shipments account for more than 50
percent of Thailand’s processed fishery and aquatic animal exports. Over
recentyears,ourprocessedfisheryandaquaticanimal shipmentshavebeen
adversely affectedby non-tariff barriers (NTBs), e.g., theEU’s “yellow card”
warningon IUU fishing, plusanoutbreakof earlymortality syndrome (EMS)
on shrimp and volatile tuna import prices.
However, those issueswill likelyeaseduring2017. Thailand’s statuson
IUU fishingwill likelybeupgraded, wherein theEU is scheduled tomakean
official announcement during the first half of 2017, which should benefit the
image of Thai products. In addition, the shrimp EMS outbreak has been
successfullycontrolled, thusallowingourshrimpoutputs to recovergradually.
Although widespread flooding in southern Thailand has adversely affected
the fishery andaquatic animal processing industry as a result of substantial
damage tomanyshrimp farmsanddifficulties in transportingseafoodsupplies
toprocessingplants, it isexpected that problems from the inundationwill be
addressed quickly; therefore, flooding should have a limited impact on the
overall fishery andaquatic animal processing industry in 2017.
Thus,KResearchhasassessed thatThai processedfisheryandaquatic
animal exports for 2017 may advance 3 percent YoY to USD 5.7 billion (if
flooding in thesoutheasesquicklyandfisheryandaquaticanimalprocessing
returns tonormalcywithinamonth), whichwouldbehigher than someUSD
2 billion, increasing 11 percent YoY, reported for 2016. Our major export
markets would likely be the U.S. and Japan. However, our canned tuna
shipments,beingThailand’skeyexportcategory,maycontinue tobe inhibited
by volatile tuna import costs.
Processed livestock andmeat product exports
look rosy, supportedbyhigher chickenshipments
Chickenexportsnowaccount for80percentofThailand’sprocessed livestock
andmeatproduct shipments. It isexpected thatourchickenexportswill grow
substantially in 2017, in particular processed chicken shipments to key
markets, e.g., Japan, because our products meet their consumer needs.
Moreover, SouthKoreabegan to resume chilledand frozen chicken imports
fromThailand onNovember 9, 2016 after imposing a ban on those imports
whenThailandhadbeenhit byanavianfluoutbreak in2004. Inaddition, the
currentH5birdfluoutbreaks inmanycountries,whichareourmajor chicken
importers,will likelyhelpbolsterThai chickenexportseven further, given that
manybirds in thosecountrieshavebeenculled tocontrol theoutbreak.Also,
our chicken products are themost competitive, given special tax privileges
and low freightcosts relative tokey rivals,e.g.,ChinaandBrazil, thusoffering
hugeopportunities forThai chickenproducersandexporters, going forward.
