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THE IMPACT OF INTERNATIONAL FISH TRADE ON FOOD SECURITY IN THAILAND

by

Somying Piumsombun
Senior Fisheries Economics Expert
Department of Fisheries
Bangkok, Thailand

Abstract

Fisheries sector is important to the economy of Thailand as the source of income, employment, foreign exchange earnings and supply of animal protein food. Though Thailand is the largest fish exporting country, supply of food fish to domestic consumers is not jeopardised and the bigger portion of fish production supply the domestic market. In 2000, per capita fish consumption on average was 32.7 kg, far outweighs other animal protein sources. Based on the consumption survey during 1998-2001, per capita fish consumption of people residing in inland provinces was 28.8 kg whereas people in coastal provinces consume 45.21 kg. In terms of quantity, urban consumers consume less fish than consumers in rural areas. Moreover, consumers in different areas/regions have different tastes, preferences and levels of purchasing power, which affect their choices of species and quality of fish they buy. Even though Thailand has no experience in fish supply shortage, major constraints on the capability of fisheries sector to sustain its contribution to food security are identified including overfishing in the Gulf of Thailand, environment issues on shrimp farming, loss of fishing gear, non-selectivity and poor handling, international trade restrictions and income distribution. Effective measures and management in all aspects will generate long term significant gains in fish supply as well as better economics and food security and hence social well being.

1. INTRODUCTION

Thailand is one of the top fish producing nations in the world. Total fisheries production was recorded at over 3.6 million tonnes in 1999. Geographical advantage is one factor attributed to the relative high annual fish production. Thailand has a total land area of about 540 000 km2 and a coastline of 2 614 km. Marine fishing grounds which fall within Thailand’s Exclusive Economic Zones, lie in part of the Gulf of Thailand and part of the Andaman Sea and cover a total area of about 316 000 km2. The area of inland waters is approximately 3 750 km2. Besides, over one million hectares of coastal areas have a potential for coastal aquaculture.

In 2000, the gross domestic product (GDP) of fisheries sector was 123.2 billion Baht[9], which accounted for about 2.5 percent and 27.6 percent of national GDP and of agricultural GDP, respectively. The fisheries industry has additionally contributed to the development of other related industries and supporting industries such as ice plants, cold storage, fish processing plants, ship building, hatcheries, feed industry, transportation etc. Therefore, the number of people engaged in this sector was estimated nearly two million, of which 40 percent are fishermen and fish farmers and the balance are engaged in other related/supporting industries.

The fish produced are consumed domestically or exported for foreign exchange earnings. It is the important source of protein and this is reflected in the per capita fish consumption of 25-32 kg during the past decade. The export value of fish and fishery products has increased significantly. In 2001, a trade surplus of 146.8 billion Baht was recorded.

Thailand became the largest fish exporter in the world in 1993 and the balance between supply and demand is critical to whether the country can meet her rising fish demand. It is appropriate that this paper reviews the source of fish supply for domestic consumption and export earnings as well as accessibility of fish and fish products through the domestic marketing system. The importance of international fish trade that generates income, employment and export earnings which contribute to the wealth of the nation will be highlighted. Per capita fish consumption and fish expenditure classified by areas and type of consumers will be analysed. Lastly, the paper will identify the main issues involving the challenges and opportunities that will enable the fisheries sector to sustain its contribution to food security.

2. FISHERIES PRODUCTION: IMPORTANT SOURCE OF FISH SUPPLY

Fisheries production in Thailand demonstrated a remarkable growth over the last three decades. The total production exceeded two million t for the first time in 1977 but it was followed by a setback and recovered to over two million t again since 1982. In 1999, over 3.6 million tonnes were recorded, of which 75.2 percent came from marine capture fisheries. The balance was contributed by coastal aquaculture, freshwater aquaculture and inland capture fisheries at 12.2 percent, 6.9 percent and 5.7 percent, respectively.

2.1 Capture Fisheries

Marine capture fisheries

The most recent figures in 1999 show a marine catch of over 2.7 million tonnes, valued at 48,444.6 million Baht. Marine capture fisheries are divided into fishing in the Thai waters and in outside Thai waters. Fishing grounds that fall within Thailand’s exclusive economic zones lie in part of the Gulf of Thailand and part of the Andaman Sea.

Marine catch in the Thai waters both from commercial fishing (about 90 percent), and small-scale fishing has shown a decreasing trend, especially during 1994-1999 when the total catch decreased at 6.6 percent per year. Catch composition in 1999 are food fish, trash fish, cephalopods, shrimp, crabs, mollusc and others about 54 percent, 28 percent, 7 percent, 3 percent, 2 percent, 3 percent and 3 percent, respectively.

On the contrary, catch from outside the Thai waters has shown an increasing trend in the past decade at annual growth rate of approximately 10 percent. At present, about 4 200 fishing vessels have operated overseas fishing in many neighbouring coastal states. It is estimated that in 1999, of the total marine catch, 40 percent originate from waters outside Thai jurisdiction.

Inland capture fisheries

The important bases for inland capture fisheries are rivers, lakes, swamps and reservoirs. The fisheries have long been part of Thai culture and serve as an important source of animal protein for the rural people. Most of fisher folks in this sub-sector are small-scale operators. Only fishing in large impoundments is mostly commercial. In 1999, the production level of 206 900 tonnes, valued at 7 221.3 million Baht was recorded. Production from inland fisheries during the past five years (1994-1999) is more or less stable.

2.2 Aquaculture

Considering the country’s total aquaculture production, which is divided into coastal and freshwater production from freshwater aquaculture, was predominant in earlier days. However, coastal aquaculture has played an important role from 1988 onwards due to the rapid development of intensive marine shrimp culture. In 1999, total aquaculture production was recorded at 594 600 tonnes, valued at 68 478.20 million Baht. Of the total quantity and value, coastal aquaculture shared 61.8 percent and 89.8 percent, respectively.

Coastal aquaculture

Coastal aquaculture is practiced in the interface between freshwater and seawater. This sub-sector becomes more important as an alternative to produce food fish in substitute for the loss from marine resource due to depletion. The rapid growth is mainly due to the accelerated development in culture technology. Many species have relative high price and substantial demand. The species are shrimp (tiger prawn), shellfish and marine fish. Marine shrimp is the predominant species. The opening of foreign shrimp markets caused rapid expansion of shrimp culture. Over 90 percent of cultured marine shrimp is exported. In 1998, its production was 275 544 tonnes, valued about 67 100 million Baht.

Shellfish, mainly bivalves, are cultivated in inshore coastal areas. Its production was around 88 000 tonnes, of which green mussel contributed the greatest share. Marine fish culture comprises mainly grouper and seabass. Total production in 1999 was nearly 7 000 tonnes, of which seabass accounted for over 80 percent.

Freshwater fish culture

From 1963 onwards, fish culture has been rapidly developed, partially from the breakthrough in artificial breeding by hormone injection of many valuable species. The pattern of culture, either monoculture or polyculture varies according to species cultured. The former is commonly found in raising carnivorous species i.e. walking catfish and snakehead fish, and other species such as freshwater prawn, stripped catfish, and sand goby. The latter is generally found where herbivorous species are raised, namely, tilapia, silver barb, common carp, Chinese carp, and mrigala. Furthermore, wherever possible, people are encouraged to culture fish in addition to pig or poultry raising, vegetable and fruit cultivation and rice planting. Therefore, integrated fish culture with animal husbandary and/or cropping are commonly practiced in Thailand.

In 1999, with the cultured area about 91 000 ha catch from freshwater culture amounted to 252 600 tonnes, valued at 7 953.10 million Baht. Cultured freshwater fish production showed the increasing trend during the past two decades (1977-1999) with an average annual increase of 10.8 percent and 15.7 percent in quantity and value, respectively. The main species cultured that contributed nearly 90 percent in quantity and over 75 percent in value are Nile tilapia, walking catfish, Thai silver barb, Sepat Siam, striped catfish and snake head.

3. CATCH UTILIZATION

Of the total fish production, about 78 percent was used for human consumption; the balance of 22 percent was for animal feed. As far as marine catch landings are concerned, about 28 percent was trash fish that was used for non-food and mainly channelled to the fishmeal industry. The balance was for human consumption, of which 20 percent was consumed fresh and the remainder was processed into various product forms of chilled, frozen, canned, steamed or smoked, dried and salted, shrimp paste and fish sauce. For freshwater fish, all was for food fish and 80 percent was consumed fresh.

4. DOMESTIC MARKETING

To bring fish to the consumer, the marketing system plays a vital role. Domestic fish marketing in Thailand is complex concerning many types of markets and a very large number of parties involved. Marketing is left almost exclusively in the hands of the private sector. Fish as a commodity is sold in fresh as well as processed. To transfer fish to consumer, there are many types of traders concerned in primary market, intermediate market and terminal market.

4.1 Markets

Primary market is the point where fish marketing starts for the first time at the landing places or farm gate. Intermediate market is the point where fish passes through before redirected or re-consigned to the terminal market. Terminal market is the final marketing stage where fish is distributed to consumers through retail outlets, including retail markets, supermarkets, restaurants and canteens. Intermediate market level in Thailand is composed of two market types; the central assembly market and the wholesale market.

4.2 Assembly Market

Central assembly markets can be divided into state assembly markets and private assembly markets. State assembly markets are managed by the Fish Marketing Organization (FMO)[10] located in central Bangkok, Samutsakorn and Samutprakarn provinces. The Bangkok market handles both marine fish and freshwater fish whereas the other two markets handle only marine fish. Fish is sold through registered fish agents[11]. Mostly, selling and buying of fish is conducted through an auctioning system. However, it is observed that the system is gradually replaced by price negotiation. Private assembly markets are run by the private persons who normally own land in suitable locations. Nowadays, the private assembly markets have developed significantly for freshwater fish trade to cater for the increase in the supply and demand of the cultured freshwater fish. Prices are determined by either auctioning or negotiation. Private assembly markets operate also for cultured shrimp. There are two private assembly markets where selling and buying is trough auctioning (Samutsakorn and Nakhonsrithammarat province).

4.3 Wholesale and Retail Markets

Wholesale markets are mostly located in big cities and in good locations. Many of them incorporate retail on the final consumer market. Usually, wholesale markets include other consumer products, and selling fish is one of many activities in this market.

Retail markets are scattered in urban and peri-urban areas to which consumers have easy access. These are not speciality markets selling only fish; instead all kinds of food items are for sale. Normally, a number of retail-stalls with no separating walls give the market the appearance of a traditional open hall with one big roof above a concrete floor. Fish are placed on slabs, but live fish are displayed in crates.

Big retail markets often incorporate wholesale markets as well. All kinds of fish are found, live, dead, whole fish or pieces of fish, processed, i.e. salted and dried minced fish, fish balls, fermented fish, etc. Usually, retailers post prices on the board above their stalls. Markets are open every day. To date, 16 big retail/wholesale markets exist in Greater Bangkok.

Nowadays, it is common to find fish in supermarkets, which are emerging throughout Greater Bangkok. Fish may be sold whole, gutted, or in pieces. A variety of processed fish is sold in small portions. Open freezers are used for storage and display. On average, prices in supermarkets are about 40-50 percent higher than in traditional retail markets. Hotels and restaurants are increasingly offer cooked fish.

Another retail outlet that is developing rapidly is the shed built in front of the fish processors’ houses along main roads from Bangkok to other provinces. Fish sold from these locations are earmarked to serve travellers and consist mostly of salted and dried fish.

Franchises are becoming increasingly popular. Fish is promoted as fast food and delivery becomes another service that changes consumers’ habits from eating out to staying at home, particularly in a big city like Bangkok.

5. INTERNATIONAL TRADE

Export and Import Value

The growth of international fish trade in the past has been remarkable and Thailand has maintained a surplus balance of fish trade for over the past two decades and has been ranked as the top exporter of edible fisheries products in the world since 1993. In 2000, the total volume and value of fish export was about 1.36 million tonnes and 185 750 million Baht, respectively. Revenue from export was accounted for 3.8 percent of the country’s GDP. The major markets are Japan, USA and EU.

Of the total export value, fresh, chilled, frozen and value added shrimp contributed 57.9 percent and all tuna products contributed 18.1 percent. Meanwhile, Thailand is the top importer of fresh, chilled and frozen tuna mainly from Taiwan and Japan as much as 300 000 - 400 000 tonnes annually. The imported tuna is channelled to tuna canning factories for re-exporting.

Export Value by main products

Regarding the shrimp industry and its contribution to the economy of Thailand, the opening of world shrimp markets caused a rapid expansion in shrimp industry. Over 90 percent of cultured shrimp production is exported. It is estimated that the number of people involved in Black Tiger Shrimp cluster is more than one million. Those people are engaged in the related industry i.e. broodstock, hatchery and nursery, shrimp farms, processor and exporters as shown in the chart below. These industries are also associated with supporting industries such as cold storage, animal feed plants, transportation, equipments etc. Of the total shrimp value added about 108 000 million Baht in 2000, the estimation of value added allocated to major stakeholders in the cluster is shown below. After deducting by the imported contents such as chemical and some feed ingredients, the balance was 93 000 million Baht and accounted for about two percent of the country’s GDP.

Value Chain of Thailand Black Tiger Shrimp Industry

VALUE ADDED

Value chain

Value Added (Mil baht)

Broodstock

2 160

Hatchery & Nursery

2 640

Farming

62 400

Processor/Exporter

40 800

Total value added

108 000

Less imported contents

(15 000)

Total domestic value added

93 000

Source: Institute for Management Education for Thailand Foundation

6. LEVEL OF FISH CONSUMPTION

6.1 Protein Consumption

Despite the fact that Thailand is a net fish exporting country, domestic per capita fish consumption is relatively high compared to consumption of other three main animal protein commodities, namely pork, beef, and chicken. Per capita consumption of animal protein during 1980-2000 (Table 1) showed that fish ranked first among all sources, followed by chicken, pork and beef. Per capita fish consumption in 2000 was about 32.7 kg[12], compared to 7.3 kg, 2.1 kg, and 10.7 kg of pork, beef and chicken, respectively. During the same period, the average yearly increase in consumption of fish was three percent, whereas average per capita intake of pork, beef and chicken rose 1.5 percent, -0.4 percent, and two percent, respectively. Consumption of beef is gradually decreasing, possibly because changes in the pattern of consumption. Thai-Chinese people are usually not fond of beef.

Table 2 shows the retail price of selected animal protein sources in 1996-2000. Price is the decisive factor influencing consumers’ choice of a product that is deemed suitable and affordable. Generally, the price of Indo-Pacific Mackerel and freshwater fish is relatively low, which may be partly attributed to increasing supplies and competitive prices.

Table 1: Per capita consumption (kg) of animal protein food by group, 1980-2000

Year

Pork

Beef

Chicken

Fish and Seafood

1980

5.76

2.36

8.45

19.83

1981

5.53

2.33

7.50

22.60

1982

5.46

2.38

8.98

22.68

1983

5.21

2.34

9.10

23.46

1984

5.16

2.26

8.97

19.75

1985

5.50

2.23

9.95

19.73

1986

5.16

2.14

9.56

20.45

1987

4.96

2.14

7.86

18.91

1988

5.08

2.10

7.69

18.75

1989

5.22

2.08

9.25

19.94

1990

5.55

2.15

7.35

19.77

1991

5.07

2.30

8.41

22.51

1992

5.08

2.32

11.20

25.74

1993

5.64

2.57

11.10

29.19

1994

5.67

2.90

9.810

31.20

1995

6.83

2.12

10.00

32.40

1996

7.05

2.12

10.90

31.70

1997

8.45

2.13

11.50

25.58

1998

8.04

2.11

10.78

29.05

1999

7.06

2.07

11.25

31.48

2000

7.32

2.05

10.70

32.74

Av. Ann. Increase (percent)

1.53

-0.39

2.00

2.97

Source: 1. Office of Agricultural Economics. 2. Department of Fisheries

Table 2: Average retail price (Baht/kg) of selected animal protein food

Item/Year

1996

1997

1998

1999

2000

Pork

78.22

79.54

78.37

81.62

72.28

Beef

70.05

82.47

90.96

98.54

108.45

Chicken

62.70

67.16

71.20

71.02

67.58

Marine Fish (Medium Size)


- Indo-Pacific Mackerel

42.63

43.79

48.45

53.08

52.43

- Black tiger shrimp

161.82

175.74

231.30

186.00

210.42

- Squid

81.11

86.68

90.00

83.29

74.96

- Green mussel

18.44

17.50

17.50

20.00

20.76

Freshwater fish (Medium Size)


- Walking Catfish

37.23

37.47

42.89

38.72

37.85

- Nile Tilapia (2-3 pc./kg.)

30.08

35.85

40.00

40.00

35.34

- Striped Snakehead

78.42

80.58

83.35

83.41

85.23

6.2 Annual Per capita Fish Consumption

We estimated annual per capita consumption by species, types of consumers and location, both in inland provinces and in coastal provinces based on a field survey on consumers conducted during 1998-1999 and 2001-2002. A total of 756 consumers were sampled. Table 3 shows annual per capita consumption of fish by Thai people residing in inland provinces to average 28.8 kg, of which 92.5 percent is in the form of fresh fish. Tilapia is the preferred freshwater fish (29.6 percent), followed by Thai silver barb (16.3 percent) and striped snakehead (15.4 percent). For the people residing in coastal provinces (Table 4), per capita consumption proved to be much higher to average 45.21 kg, of which 81.2 percent is in the fresh form. Marine fish is most preferred (32.4 percent)[13], followed by shrimp (12.2 percent) and mollusc (10.8 percent). It is observed that people consume dried products at high proportion (18.8 percent).

6.3 Fish Consumption by Types of Consumers and by Sources

Annual per capita intake of fish classified by types of consumers in rural and urban areas is also shown in Table 3. Urban consumption in inland provinces amounted to only 19.92 kg, which was much lower than the quantity of fish consumed by rural people. Fish intake is as high as 34.92 kg for rural producers and 28.68 kg for rural non-producers. These figures illustrate the importance of fish as a source of protein for rural consumers to meet their nutritional requirements. Consumers in urban areas may have an option to access a variety of other animal protein food.

Urban consumption in coastal provinces amounted to 42.59 kg, lower than rural producers that consume fish at a level of 53.56 kg, but higher than 40.74 kg taken by the rural non-producer. Fish consumption is higher in coastal provinces than in inland provinces for all consumer groups. Easy access to fish supply in coastal areas are apparent especially for fishers in the fishing community.

Over half of the fish consumed by rural producers in both areas come from capture fisheries, and the majority of fish for rural non-producers and urban consumers is purchased. The composition of species in the fish basket differs for rural and urban consumers in inland provinces. Tilapia ranks first on the list for all consumer types (24-32 percent). Snakehead ranks second for both rural non-producers and urban consumers, whereas silver barb is second to tilapia for rural producers. For all types of consumers in coastal provinces, the species composition has a uniform pattern.

Table 3: Annual per capita consumption by species and types of consumers in inland provinces

Species

Rural

Urban

All

Producer

Non-producer

1. No of Household

170

167

119

456

2. Quantities by Species (kg)






Common carp

0.84

0.36

0.12

0.48

Thai silver barb

7.92

4.20

0.60

4.68

Tilapia

11.04

8.76

4.68

8.52

Walking catfish

3.00

3.84

1.80

3.00

Snakehead

4.44

5.40

2.88

4.44

Other freshwater fish

4.32

2.76

2.04

3.12

Marine fish

1.32

1.68

4.80

2.40

Total Fresh fish

32.88

27.00

16.92

26.64

Dried fish

2.04

1.68

3

2.16

Total (incl. dried fish)

34.92

28.68

19.92

28.8

3. Quantity by source (kg)






Purchased

10.32

20.64

19.44

16.56

Captured

24.6

8.04

0.48

12.24

Total:

34.92

28.68

19.92

28.8

Table 4: Annual per capita consumption by species and types of consumers (Coastal Provinces)

Species

Rural

Urban

All/Average

Producer

Non-producer

1. No of Household

92

111

99

302

2. Quantities by Species (kg)






Marine Fish

16.79

14.30

13.08

14.66


- Indo-Pacific Mackeral

6.61

7.74

6.59

7.02

- Others

10.18

6.56

6.49

7.64

Freshwater fish

3.58

4.32

2.94

3.64

Shrimp

7.88

4.24

4.75

5.52

Cephalopod

5.06

3.89

3.83

4.22

Mollusc

5.72

3.85

5.27

4.88

Crab

6.76

2.35

2.69

3.80

Dried Fish

7.76

7.79

10.03

8.48

Total (include dried fish)

53.56

40.74

42.59

45.21

3. Quantity by source (kg)






Purchased

23.06

36.94

40.31

33.81

Captured

30.49

3.80

2.28

11.40

Total:

53.56

40.74

42.59

45.21

6.4 Fish Consumption by Location

People in different regions tend to differ in their cultures, traditions, socio-economic status, attitudes etc. Thus, quantities of fish consumed and preference for species vary also. Results of the survey on consumption by regions reveal that per capita intake of fish is highest in the Inner Gulf area (57.17 kg), followed by the South/Gulf side (52.14 kg), the northeast (33.8 kg), the East/coastal (33.07 kg), the northern (32 kg), the South/Andaman Sea side (31.75 kg) the eastern inland provinces, (29.8 kg), the western (28.5 kg) and the central (23.1 kg) regions of the country. It is observed that despite the fact that per capita income in the northeast is lowest but fish consumption is rather high, suggesting that the Thai people in this region have easy access to freshwater fish, both from natural and cultured sources (Table 5 and 6).

Table 5: Annual per capita consumption by species and region in inland provinces

Species

Central

West

East

North

Northeast

1. No. of Households

167

55

47

88

99

2. Quantities by Species (kg)







Silver Barb

2.04

3.96

4.20

8.16

6.60

Tilapia

5.28

11.16

12.48

9.60

9.60

Walking Catfish

2.28

2.28

3.24

3.72

3.72

Striped Snakehead

3.84

6.00

4.92

4.20

4.44

Other Freshwater Fish

3.00

3.12

1.32

4.20

5.76

Marine Fish

4.20

0.36

2.16

1.08

1.44

Total-Fresh Fish

20.64

26.88

28.32

30.96

31.56

Dried Fish

2.49

1.62

1.51

1.08

2.27

Total (Incl. dried fish)

23.13

28.50

29.83

32.04

33.83

Table 6: Annual per capita consumption by species and region (Coastal Provinces)

Species

East

Inner Gulf

Eastern South

Western South

1. No. of Households

60

61

120

61

2. Quantities by Species (kg)






Marine fish

13.04

11.26

19.06

10.94


- Indo Pacific Mackerel

3.77

6.58

10.74

3.28

- Others

9.28

4.68

8.32

7.67

Freshwater fish

2.88

8.76

2.77

0.96

Shrimp

1.79

8.50

7.12

3.02

Cephalopod

3.52

2.80

4.83

5.17

Mollusc

3.76

6.89

4.85

4.06

Crab

3.32

3.08

3.98

4.66

Dried Fish

4.76

15.89

9.54

2.93

Total (Incl. dried fish)

33.07

57.17

52.14

31.75

6.5 Fish Expenditure (Table 7)

Fish expenditure by areas

Based on survey results, average annual per capita expenditure of the Thai people residing in inland provinces and coastal provinces, are shown in Table 7. Discrepancies in income are apparent between two groups. The former spend only 19 872 Baht, of which food expenditure shared about 40 percent and fish expenditure shared about 16 percent. The latter spend as much as 29 953 Baht, of which food expenditure and fish expenditure constitutes about 36 percent and 24 percent, respectively.

Expenditure on fish of those who live in inland provinces is divided into eight groups: common carp, Thai silver barb, tilapia, catfish, snakehead, other freshwater fish, marine fish and dried fish. In terms of money spent on buying fish, snakehead was most preferred (22.8 percent). Tilapia, dried fish and marine fishes followed next in line.

Fish expenditure spent by people in coastal provinces is divided into seven groups: marine fish, freshwater fish, shrimp, cephalopods, mollusc, crab and dried fish. Of total fish expenditure, shrimp shared the highest proportion about 29.8 percent, followed by marine fish, crab and dried fish.

Table 7: Annual per capita expenditure


Average Annual Expenditure (Baht/year)

Inland Provinces

Coastal Provinces

Average

Urban

Rural

Average

Urban

Rural

1. Total

19 871.40

30 578.64

16 090.44

29 953.20

35 466.84

27 264.24

2. Food

8 010.72

8 928.24

7 686.72

10 913.76

12 878.76

9 958.56


percent out of total

40.31

29.20

47.77

36.44

36.31

36.53

3. Non - Food

11 860.68

21 650.40

8 403.72

19 039.44

22 594.56

17 305.68


percent out of total

59.69

70.80

52.23

63.56

63.71

63.47

4. Fish *

1 250.40

1 444.92

1 181.76

2 586.72

2 576.28

2 591.76


percent out of total

6.29

4.73

7.34

8.64

7.26

9.51

percent out of food

15.61

16.18

15.37

23.70

20.00

26.03

* Including dried fish







Fish expenditure by types of consumers

Total expenditure of urban consumers in inland provinces was almost double that of rural consumers. Of the total expenditure, the latter allocated almost a half to food items (47.8 percent) whereas the former spent only 29.2 percent. The share of money spent on fish by urban consumers (4.7 percent) was less than that by rural consumers (7.3 percent). The proportion of expenditure on fish in the food budget was not differed (15-16 percent).

For consumers in the coastal provinces, less discrepancy in expenditure between urban consumers and rural consumers was observed. Of total expenditure the two groups allocated 36 percent to food items. Out of food expenditure, the urban consumers spent 20 percent and rural consumers spent 26 percent. Generally, urban consumers had a higher fish expenditure than rural consumers. However, species composition in their fish baskets commanded higher prices that made lower per capita consumption. Marketing is the tool, which segregate production according to source, size and quality to sell the products in the markets that serve different groups of consumers. It was observed some peculiar species have appeared in upper-level markets and to serve the tourist trade, such as marine shrimp, freshwater prawns and sand gobies. Species like indo-Pacific Mackerel, tilapia, Thai silver barb, walking catfish, snakehead, and Chinese carps etc., are produced for city markets. Most of the herbivorous species and smaller sizes are sold to low-income markets or in rural areas.

6.6 Prices of Individual Species (Tables 8 and 9)

For freshwater fish, on average, snakehead commanded the highest price (68.58 Baht/kg) among freshwater fishes as measured in Baht/kg, followed by Thai silver barb (30.00 Baht/kg) and tilapia (28.47 Baht/kg). Snakehead is sold in large sizes of about two pcs/kg. Sizes of other species were smaller, ranging from 3-5 pcs/kg.

For marine species, shrimp commanded the highest prices (143.41 Baht/kg), followed by crab (95.47 Baht/kg). Generally, the price paid by urban consumers is higher than that paid by their rural counterparts for the same species. This may be attributed to the larger sizes of fish sold to urban consumers. Comparing retail prices paid by rural producers and non-producers, it is evident that non-producers in inland provinces pay more. Access to the market is the likely dominant factor contributing to price differences in addition to the size of fish. However, prices paid by rural producers and non-producers in coastal provinces are not significantly different, given the same size of fish.

Table 8: Prices (Baht/kg) by species and sizes (pieces/kg) in Inland Provinces

Species

Urban

Rural

All



Producer

Non-Producer



Size

Price

Size

Price

Size

Price

Size

Price

Tilapia

3.71

29.56

4.03

26.24

3.88

29.08

3.87

28.47

Thai Silver Barb

4.32

33.04

4.25

28.26

4.35

30.26

4.31

30.00

Common Carp

3.08

35.00

3.39

33.61

3.22

38.06

3.28

35.29

Catfish

4.25

30.11

5.17

28.28

4.96

28.54

4.83

28.87

Snakehead

2.08

77.20

2.46

63.35

2.61

66.17

2.42

68.58

Marine Fish

8.23

93.91

9.81

59.12

9.12

64.24

8.92

75.43

Other freshwater Fish

4.36

76.13

6.56

41.80

7.68

45.51

6.19

56.66

Dried fish

-

151.05

-

71.18

-

91.28

-

104.79

Table 9: Prices (Baht/kg) by species and size (pieces/kg) in Coastal Provinces

Species

Urban

Rural

All

Producer

Non-Producer

Size

Price

Size

Price

Size

Price

Size

Price

Marine fish










-Indo-pacific mackerel

13.04

35.55

11.51

35.29

11.66

34.54

12.13

35.06

-Others

6.85

67.51

7.85

64.06

9.52

50.05

8.25

59.15

Freshwater fish

4.63

48.56

5.40

44.02

4.93

49.63

4.95

48.10

Shrimp

58.08

154.79

79.58

142.20

81.11

132.36

71.13

143.31

Cephalopod

17.06

59.21

17.75

62.19

18.94

59.85

18.07

60.32

Mollusc

51.19

31.39

30.39

33.94

42.83

27.90

44.48

30.62

Crab

7.25

99.71

10.17

100.83

6.92

87.97

7.87

95.47

7. CONCLUSION AND ISSUES ON FOOD SECURITY IN THAILAND

Fisheries production in Thailand has increased steadily over the past two decades. Both captured fish and cultured fish sources are scattered throughout the country. Fish is an important source of animal protein for the Thai people. Aquaculture has an increasing role in supplying food fish for domestic consumption and international trade. Since per capita fish consumption is over 30 kg, international fish trade intuitively has no negative impact on domestic fish consumption. However, continued increases in population will result in greater demand for fish. Domestic fish supply should grow with demand to secure fish protein intake. The main issues that are to be addressed include the below indicated points.

7.1 Production Aspect

For marine capture fisheries, overfishing in the Thai waters is the chronic problem, which needs efficient and effective management in order to allow fisheries to sustain its contribution to food security. Additionally, trash fish that is caught by non-selective gear should be minimized, since about 50 percent is composed of juvenile fish. Improvement of fishing gear selectivity and fishing methods is expected to secure the domestic supply of food fish for the Thai people.

Total Food Fish and Trash Fish in Thai Waters (1987-1999)

Cultured shrimp is a major export item that helps generate income and employment. Sustainability is of major concern. Shrimp culture has been accused of mangrove area encroachment and causing environmental degradation, as well as water pollution through deficient management. The environment issues are addressed as a main hindrance to international trade, and improving shrimp culture sustainability is an urgent need. Possible solutions include:

The Government should encourage the development of new species of fish and new domestic markets such as speciality markets and international markets, to stimulate additional growth of production. Furthermore, programs could be coupled with new technologies to improve high-yielding and high-valued strains of fish. New techniques need to be devised for integrating environmental concerns into management decisions.

7.2 Marketing Aspect

Some fish is lost after harvest and before reaching the consumer, priority should also be given to the handling of fish efficient through the entire marketing chain. Although some progress has been made, applied knowledge of how to maintain the quality of fish, is still lacking. Improved market facilities are needed that result in a more hygienic environment, as well as other proper amenities. Waste and contamination of fish could be reduced through proper handling techniques. Consumer awareness regarding good handling practices has to be encouraged. It is necessary to educate fishers/farmers, processors and consumers about methods of handling aquatic products, including home processing, preparation, quality and the nutritional value of fish.

7.3 Consumption Aspect

Building greater awareness of the nutritional value of fish and promoting the consumption of fish as a regular dietary staple are important steps.

7.4 International Fish Trade Aspect

Thailand has become a member of the World Trade Organization (WTO) in 1994. The fisheries sector in Thailand has been aware of the impact of WTO agreements on fish trade. So far, there are several forms of trade restrictions put into effect by many developed nations. However, the challenges to trading partners are still limited due to the fear of interruption of market access. Measures claiming to protect global environment may discourage free trade and raise cost of exported products.

- Product specification standards (e.g. labelling) which vary among the importing countries, even if not intended to restrict trade due to the lack of transparency or complications in their application, can turn to be actual restrictions.

- The issues relating to SPS measures that may impact fish trade are; arbitrary and non-science based sanitary and food safety measures used to protect human, animal lives, as well as to limit market access.

Therefore, strengthening the research on food safety risk analysis in preparation for measures to be taken against and joint risk analysis studies should be done. Moreover, jointly work on Code of Conduct on Fish Utilization among agencies responsible for SPS measures is necessary.

Requirements of health certificates of different forms and languages, such as EU health certificate, including certificate of origin, and non-GMO certificate have excessively created administrative barrier to trade. Trade restrictions as mentioned above may cause reduction in both volume and value of fish trade and hence lower national income. This will finally be a negative impact to the people’s purchasing power and hence food security.

7.5 Income Distribution

While continued growth of export earnings is needed for its contribution to wealth and well-being of society as a whole, the bottom line remains the issue of proper income distribution to achieve poverty reduction and improved food security in the poor segment of society. In conclusion, strong actions in better fisheries resource management, better protection of the environment and sustainable development of aquaculture as well as promotion of efficient marketing system, transparency in international fish trade and proper income distribution are the keys for food security in Thailand.

REFERENCES

Department of Fisheries. (Various Issues). Annual Fisheries Statistics of Thailand. Fisheries Economics Division, Department of Fisheries, Bangkok.

Department of Fisheries. (Various Issues). Statistics of Cultured shrimp Production in Thailand. Fisheries Economics Division, Department of Fisheries, Bangkok.

Department of Fisheries. 2001. Country Paper: Thailand. Regional Technical Consultation on Fish Trade in the ASEAN region, 9-11 April 2001. Bangkok.

Institute for Management Education for Thailand Foundation. 2002. Study Highlights: Competitiveness of Thailand’s Black Tiger Shrimp Industry. The Fourth Workshop on National Marine Shrimp, 18-19 November 2002. Rayong, Thailand.

Somying Piumsombun. 1996. Marine Fisheries Crisis in Thailand: Lessons for Review and Resolve. Research Paper No.16/1996. Fisheries Economics Division. Department of Fisheries, Bangkok. (Thai version).

Somying Piumsombun. 2001. Production, Accessibility and Consumption of Freshwater Fish Culture in Thailand. ICLARM/FAO project.

Somying Piumsombun. 2002. The state of Thai Fisheries and Fisheries Development Policies. Thai Fisheries Gazette. Volume 55, Number 4, July-August. Department of Fisheries, Bangkok.


[9] 1 US$ is equivalent to 43 Baht (January 2003)
[10] FMO is State enterprise under Ministry of Agriculture and Cooperatives.
[11] According to the existing Royal Decree on fish agent, fish agents must be registered with the Department of Fisheries.
[12] From balance sheet. Figure varies slightly from FAO statistics due to the difference in using conversion ratio of processed fish to live weight.
[13] Indo Pacific Mackeral accounts for a half.

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