Cultured Shrimp

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Cultured Shrimp

Exportation

Carpio, Camille

Decal, Densil

Pantanilla, Gian

Tan, Sarah


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Asia and Latin America seized the opportunity in thisindustry due to climate and natural resourcessuitable for shrimp farming.


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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.


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The shrimp industryis Thailands

biggest revenue

earner in thefishery category

Thai shrimp exports

account for 75% ofits total production.


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Site selectionand pond

design

Stocking of

Juveniles

FeedingWater Quality

Management

HarvestingProcessing

andMarketing

Shrimp Production


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Costs of Shrimp Cultivation


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Benefits of Shrimp Cultivation


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Shrimp Trading Partners

Primary ShrimpMarket : Japan andUSA

Secondary ShrimpMarket: Singapore,Canada, China,

Australia, the EU, andTaiwan


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Top importer of

shrimps from Thailandwith 50% of its

exports.

US also produces shrimps but itscheaper to import processed

shrimps from Thailand.

They regard Thaishrimp as a high-value, high-price

shrimp.

The United States

They prefer it over

others since it ischeaper and has

firm meat.


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Thai shrimp market share in theUS, 2002


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Japan

Japan imports approximately 90% of itsdemand while less than 10 percent issupplied by its local production.

However, with the economicslowdown in 1996, Japanese importerslooked to trade with lower-pricedfrozen shrimp suppliers.

Since Thailand has high minimum wage

rate, shrimp was expensive. Hence,Ja an shifted to other countries.


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Thai frozen shrimp market sharein Japan, 19982002


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Japan With the continuing dropin shrimp price and stiffcompetition in the frozenshrimp category, Thai

processors diversified tovalue-added production.

These products includebreaded tempura andsushi boiled shrimp.

Shifting toprepared/preservedshrimp products ahead ofits rivals provided Thailanda lead over its competitors


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


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Thai prepared/preserved marketshare in Japan, 19982002


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The European Union

The EU was the fourth largestmarket for Thai shrimp in 1995,but Thailand lost itscompetitiveness in that marketwhen it was dropped from the EUlist of countries under the EUsGeneralized System ofPreferences (GSP) in 1996.

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


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Thailands shrimp exports to the

EU, 19932002


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Thailands Competition

It can be seen thatThailand has other rivalswhen it comes to theshrimp industry

Thailands competition in

the US market are:Mexico, Ecuador, China,Vietnam, and India

As for Japan: Indonesia,India, Vietnam and China


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Revealed Comparative Advantage(RCA) in Shrimp Industry

RCAij > 1 ; the country reveals a comparativeadvantage in the trade of shrimp product i

RCAij < 1 ; the country reveals acomparativedis advantage in the trade ofshrimp product i

RCAij = 1; the country reveals a comparativeneutrality in the trade of shrimp product i


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Results in RCA

The results of RCAduring 1991 - 1999showed that the Thai

frozen shrimp had acomparativeadvantage inexporting into the US

market, while lost itsin the Japan marketduring 1994 - 1998.

Black Tiger Prawns


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Trade Policies

Imposed 100% testing Restricted exports from Vietnam and China

Zero TolerancePolicy

Lost its preferential trade status (1997) Shifted shrimp exports from EU to USMost favorednation tariff

6 developing countries Improve the competitiveness of US shrimpers

Anti-DumpingPolicy

Import notification form Inspected for the residuals of antibiotics

Food SanitationLaw


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Conclusion

Ricardian Model Specialization in

shrimp industry

Gravity Model

gargantuan nationstill has Thailandas the major

trading partner

Cultured Shrimp

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