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Thailand
This Week in AsiaEconomics

Malaysia’s import ban pushes Thai shrimp industry to brink

Prices have collapsed and buyers have vanished since Malaysia banned Thai shrimp. Bangkok is now threatening WTO action

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A Michelin-starred chef inspects a locally caught shrimp at a market in Bangkok, Thailand, in 2023. Photo: AFP
Aidan Jones
Thai shrimp farmers have warned they face being driven out of business after Malaysia banned imports of five shrimp species over apparent safety concerns, as the industry also grapples with disease outbreaks, rising competition and renewed US tariff threats.
Malaysia issued a temporary ban on June 1, also tightening import requirements for Thai sea bass. The move was a gut punch for Thailand’s seafood industry, which exports 10,000 tonnes of shrimp across its southern border each year.
Bangkok has warned it may escalate the dispute to the World Trade Organization if talks fail to swiftly resolve an impasse that has frozen trade worth tens of millions of US dollars and pushed thousands of farmers in Thailand’s south to the brink.
Piles of dried shrimp and prawns are seen for sale with other small crustaceans and fish at Tha Tian market in Bangkok. Photo: AFP
Piles of dried shrimp and prawns are seen for sale with other small crustaceans and fish at Tha Tian market in Bangkok. Photo: AFP

Malaysia’s fisheries department director general, Adnan Hussain, said on Monday that his country was awaiting a response from Thai authorities on questions over export quality. “Once we receive the response, we will assess whether it meets Malaysia’s biosecurity requirements,” he told Bernama, the state news agency.

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But the waiting game is already inflicting damage. As rumours of the suspension circulated in mid-May, farm-gate prices fell by as much as 30 baht (90 US cents) per kilogram, according to Preecha Sookasem, 60, owner of Sri Songkla Shrimp Farm – one of around 3,000 southern shrimp farmers.

White shrimp, which normally fetches around 200 baht per kilogram, has dropped to 160 baht.

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“When the ban officially took effect on June 1, prices fell further and buyers disappeared altogether,” Preecha said. “That has put us in a very difficult position because shrimp is not a commodity that can be stored in a warehouse. We have to sell it immediately.”

Songkhla, his base of operations, lies about an hour from the Malaysian border, over which some 30 tonnes of fresh shrimp are normally exported daily.

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