‘We’re still seeing big jumps, even though prices are leveling off a little bit now,’ says supplier.

Elisabeth Fischer:
Published: 02 October 2013 03:29 PM
Updated: 02 October 2013 01:42 PM
Shrimp prices in Thailand are still rising as the Early Mortality Syndrome (EMS) saga continues, Jim Gulkin, managing director at Siam Canadian, told IntraFish.

For 60 pieces buyers have to fork out THB 267 (€6.30/$8.50) today, while a month ago — on Sept. 2 — they paid THB 232 (€5.50/$7.40), Gulkin said.

For 70 pieces, prices have jumped from THB 221 (€5.20/$7.10) last month to THB 255 (€6/$8.20) today, while prices for 80 pieces now stand at THB 243 (€5.80/$7.80), up from THB 208 (€4.90/$6.70) on Sept. 2.

“We’re still seeing big jumps, even though prices are leveling off a little bit now,” Gulkin said. Prices for raw materials are about above $2 (€1.50) over contracts, he said. But despite that, factories are “going aggressively” after the raw material.

He expects a total production output of 250,000 metric tons for the full year of 2013. If the industry can get back on track, production could rise again to 400,000-450,000 next year, but he expects it will take “two to three years” before it’s back to normal levels of about 600,000 metric tons.

“It’s been a struggle and it’s still not clear when the EMS issue is going to be solved,” he said, adding there is, however, some light at the end of the tunnel, but “very spotty.”

Siam Canadian’s business is nevertheless strong, Gulkin told IntraFish. “We’ve been fine as a group. Fortunately, we’re spread out across Asia.” Indonesia, India, Vietnam and China have been faring better, he said.

Volume is down, but the dollar value is up 10 to 12 percent. For the year to date, the company saw sales of $225 million (€166.4 million), up from $209 million (€154.6 million) in the same period last year.

Gulkin hopes to break the $300 million (€221.9 million) mark this year, but is sure the year will end up profitable.


Contact us for more formation:

Siam Canadian Group Frozen Seafood Exporters 

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