Cultured Shrimp Exportation

Carpio, Camille Decal, Densil Pantanilla, Gian Tan, Sarah

 Asia and Latin America seized the opportunity in this industry due to climate and natural resources suitable for shrimp farming.

Thailand is considered to be the top exporter in the world when it comes to cultured shrimp.

With this, we will discuss why shrimp exports in Thailand is successful.

 The shrimp industry is Thailands biggest revenue earner in the fishery category Thai shrimp exports account for 75% of its total production.

Site selection and pond design

Stocking of Juveniles

Feeding

Water Quality Management

Harvesting

Processing and Marketing

Shrimp Production

Costs of Shrimp Cultivation

Benefits of Shrimp Cultivation

Shrimp Trading Partners

Primary Shrimp Market : Japan and USA Secondary Shrimp Market: Singapore, Canada, China, Australia, the EU, and Taiwan

The United States

Top importer of shrimps from Thailand with 50% of its exports.

They regard Thai shrimp as a highvalue, high-price shrimp.

US also produces shrimps but its cheaper to import processed shrimps from Thailand.

They prefer it over others since it is cheaper and has firm meat.

Thai shrimp market share in the US, 2002

Japan

Japan imports approximately 90% of its demand while less than 10 percent is supplied by its local production. However, with the economic slowdown in 1996, Japanese importers looked to trade with lower-priced frozen shrimp suppliers. Since Thailand has high minimum wage rate, shrimp was expensive. Hence, Japan shifted to other countries.

Thai frozen shrimp market share in Japan, 19982002

Japan

With the continuing drop in shrimp price and stiff competition in the frozen shrimp category, Thai processors diversified to value-added production. These products include breaded tempura and sushi boiled shrimp. Shifting to prepared/preserved shrimp products ahead of its rivals provided Thailand a lead over its competitors

Value of shrimp exports to Japan, 1993-2002 (US$ million)

Thai prepared/preserved market share in Japan, 19982002

The European Union

The EU was the fourth largest market for Thai shrimp in 1995, but Thailand lost its competitiveness in that market when it was dropped from the EU list of countries under the EUs Generalized System of Preferences (GSP) in 1996.

The tariff for Thailand frozen shrimp jumped from 4.5 percent to 14.5 percent, and the rate for the prepared/preserved shrimp, from 6 percent to 20 percent.

Thailands shrimp exports to the EU, 19932002

Thailands Competition
It can be seen that Thailand has other rivals when it comes to the shrimp industry Thailands competition in the US market are: Mexico, Ecuador, China, Vietnam, and India As for Japan: Indonesia, India, Vietnam and China

Revealed Comparative Advantage (RCA) in Shrimp Industry

RCAij > 1 ; the country reveals a comparative advantage in the trade of shrimp product i RCAij < 1 ; the country reveals a comparativedis advantage in the trade of shrimp product i RCAij = 1; the country reveals a comparative neutrality in the trade of shrimp product i

Results in RCA
The results of RCA during 1991 - 1999 showed that the Thai frozen shrimp had a comparative advantage in exporting into the US market, while lost its in the Japan market during 1994 - 1998.

Black Tiger Prawns

Trade Policies
Zero Tolerance Policy
Imposed 100% testing Restricted exports from Vietnam and China Lost its preferential trade status (1997) Shifted shrimp exports from EU to US 6 developing countries Improve the competitiveness of US shrimpers Import notification form Inspected for the residuals of antibiotics

Most favored nation tariff

Anti-Dumping Policy

Food Sanitation Law

Conclusion

Ricardian Model
Specialization in shrimp industry

Gravity Model
gargantuan nation still has Thailand as the major trading partner