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Published on January 17, 2008

The Bank for Agriculture and Agricultural Cooperatives (BAAC) has decided to give financial support to boost domestic consumption of shrimp, president Thirapong Tangthirasunan said yesterday.

The BAAC has encouraged farmers to set up shrimp-farming cooperatives, he said. Then the bank will give loans worth Bt10 million for the project.

Thailand exports about 90 per cent of its shrimp production of 500,000 tonnes a year while domestic consumption is only 10 per cent.

Thirapong said since farmers depended largely on the export market, exchange-rate appreciation and trade disputes had put them in a disadvantageous position.

So boosting domestic consumption is one solution, he said.

Meanwhile, shrimp cooperative chairman Pinyo Kiartipinyo said his organisation would buy shrimp from 1,200 farmers directly at a guaranteed price and then sell to wholesalers.

He expects the new wholesale channel, by cutting out the middle man, will reduce the price of shrimp from Bt140 to

Bt120 per kilogram. The cheaper retail price will then boost domestic consumption.

The average Thai consumes only 0.8 kilograms of shrimp per annum, while the Japanese consume 3 kilograms and Americans 2.8 kilograms. There is room to increase consumption, Pinyo said.

Wichit Chaitrong

The Nation