Key facts
- Malaysia has temporarily banned imports of five species of Thai shrimp and tightened requirements for Thai sea bass.
- The ban, effective June 1, has caused a significant drop in farm-gate shrimp prices in Thailand.
- Thousands of Thai shrimp farmers are facing potential business failure due to the import suspension.
- Thailand exports approximately 10,000 tonnes of shrimp to Malaysia annually.
- The Thai Shrimp Association estimates 100 tonnes of shrimp per day are stuck due to the ban.
- Thailand is considering escalating the trade dispute to the World Trade Organization.
Malaysia's temporary ban on five species of Thai shrimp, effective June 1, has severely impacted Thailand's seafood industry, exacerbating existing challenges such as rising feed and fuel costs, disease outbreaks, and competition. The ban, which also includes tightened import requirements for Thai sea bass, has led to a significant drop in farm-gate prices, with white shrimp falling from around 200 baht per kilogram to 160 baht. Thousands of shrimp farmers in southern Thailand, particularly in Songkhla province near the Malaysian border, are facing financial distress as unsold shrimp cannot be stored and buyers have disappeared.
The Thai Shrimp Association estimates that approximately 100 tonnes of shrimp per day, totaling around 3,000 tonnes monthly, are now stuck due to the suspension. The association's president, Ekapoj Yodpinit, has called for direct government-to-government negotiations between Thailand and Malaysia to resolve the trade dispute, emphasizing that the issue is too significant for fisheries authorities alone. Malaysia's fisheries department director general, Adnan Hussain, stated that the country awaits a response from Thai authorities on biosecurity requirements before reassessing the ban.
Thailand's Ministry of Commerce has introduced measures to support farmers, including expanding domestic sales and seeking new export markets, aiming to absorb at least 400 tonnes monthly. However, these measures are not expected to fully offset losses from the Malaysian market. Bangkok has warned of potentially escalating the dispute to the World Trade Organization if a swift resolution is not reached, as the trade freeze is worth tens of millions of US dollars.