But Ekapoj from the Thai shrimp association said any price reduction is unlikely to be dramatic or sustained, as storage, processing and distribution costs remain significant, and efforts are already underway to export to alternative markets.
If the suspension continues for several weeks or months, he said he was concerned about oversupply in the domestic market, downward pressure on farm-gate prices and the potential loss of export customers.
Any disruption affects not only exporters, but also farmers, collectors, processors and logistics operators throughout the supply chain, particularly those that rely heavily on the Malaysian market, he said.
The Thai government in a statement acknowledged the shrimp issue is tied to its tighter inspections on Malaysian sea bass imports.
On Jun 11, it said it was reviewing those procedures and working to speed up testing from around 15 days to about seven days while maintaining food safety and consumer protection standards.
In the meantime, the government said it would monitor prices and address any impact on shrimp farmers.
A FRAGILE INDUSTRY IN THAILAND
Thailand’s shrimp sector has shrunk dramatically from its peak. Production reached about 640,000 tonnes in 2010, before disease outbreaks sent output plunging. In 2026, the Thai Shrimp Association expects production of between 120,000 and 140,000 tonnes.
It has been facing multiple challenges including high feed costs, rising energy prices, labour costs and increasing competition from other shrimp-producing countries, said Ploypapus, the Thai seafood exporter.
The industry was badly impacted by Early Mortality Syndrome in the early 2010s and never fully rebuilt to its previous scale.
Disease and unstable weather, connected to worsening climate change, have continued to hit the sector in the years since, while competitors like Ecuador, India, Vietnam and Indonesia have increased their share of exports.
“Losing access to a market at this time adds further pressure on the sector,” Ploypapus said.
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