Thai Shrimp Industry Faces Structural Challenges Amid Malaysia Ban

The Thai shrimp industry has become a focal point for the government following Malaysia's suspension of imports, effective June 1. While this trade dispute may soon be resolved, Thailand's shrimp sector has been grappling with deeper, more significant structural challenges for over a decade. Thailand was once the world's largest producer and exporter of shrimp. At its peak in 2010, the country produced 640,000 tonnes annually, with exports valued at over 110 billion baht. However, following the outbreak of early mortality syndrome (EMS) in 2012, the industry suffered severe setbacks, with annual production falling to around 270,000-280,000 tonnes and export value dropping to about 40 billion baht a year. In 2025, roughly 48% of production was for export, with the remainder consumed domestically. At the beginning of this year, the industry set a production target of 400,000 tonnes, which, if achieved, could lead to shrimp exports exceeding 250,000 tonnes. The suspension by Malaysia is seen as a countermeasure after Thailand restricted imports of Malaysian sea bass in May over concerns about chemical residues. Malaysian authorities stated the ban would remain until Thai agricultural agencies submit a completed food safety standards questionnaire for reassessment. The ban affects five species: whiteleg shrimp (vannamei), black tiger shrimp, tiger prawn, banana shrimp, and blue shrimp. According to Kasikorn Research Center, Malaysia is Thailand's 11th-largest export market for shrimp, accounting for only about 1% of total global exports. Nevertheless, the ban adds pressure on an industry already facing slowing orders from trading partners and intense global competition. Farm-gate shrimp prices reportedly dropped by 50-60 baht per kilogramme after the ban took effect, though they have since rebounded by 20-30 baht per kg from their lowest point due to declining domestic supply post-harvest season. Since the ban, domestic retail shrimp prices have not fallen as much as farm-gate prices due to additional costs such as transport. Discussions between the agriculture ministers of Thailand and Malaysia on July 1 led to an agreement to expedite inspection processes related to sanitary and phytosanitary (SPS) requirements, including chemical residue and hygiene checks, to restore trade. Thai Premier Anutin Charnvirakul reaffirmed this statement after meeting with Malaysian Prime Minister Anwar Ibrahim on July 10. If the process proceeds as planned, the Thai government expects shrimp exports to Malaysia to resume within 30 days. Following these discussions, both countries must establish task forces to oversee implementation details, according to Ekapoj. However, beyond the Malaysian ban, the most significant challenge for Thailand's shrimp industry remains disease outbreaks. Major diseases like white spot disease, EMS, white faeces syndrome, and yellow head disease have significantly reduced farming success. These diseases have become a "hidden expense," driving production costs above competitors and weakening Thailand's competitiveness, said Ekapoj. In many cases, farmers are unable to harvest all their shrimp as some die before the harvest period. A shortage of shrimp breeds adapted to local conditions, requiring strains with both disease resistance and rapid growth, further exacerbates the issue. Declining shrimp output has also affected cold storage operators and processing plants, which have been unable to operate at full capacity or meet order demands. To revive the industry and ensure sustainable growth, the government and relevant agencies must work together to address disease problems. Farmers have attempted to solve this issue independently for years without success. Ekapoj believes science can resolve persistent disease and urged research institutions and the government to adopt a more coordinated and practical approach. He suggested the government act as a central coordinator, bringing together isolated researchers from universities nationwide to collaborate on systematic and sustainable solutions. Ekapoj cited Ecuador's success in overcoming similar challenges through R&D investment in disease-resistant strains. He stressed the need for adequate budgets and integrated collaboration between academic institutions and both local and international research institutes. The industry has requested the government allocate approximately 5.5 billion baht to implement strategies and initiatives under the draft National Action Plan for Addressing Challenges in the Marine Shrimp Industry (2026-2030). The proposed measures cover farm water management; development and control of production inputs; disease monitoring, prevention, and control; productivity improvement and cost reduction; R&D; human resources development and technology transfer; production standards; and marketing and processing.