Hawaii shrimp broodstock producers assess uptick in Thai demand

When Thailand, the world's largest exporter of shrimp, lifted an embargo on white shrimp imports this summer, it selected just three U.S. companies from which it would buy broodstock.

Two of the three are businesses from Hawaii: Kona Bay Marine Resources and High Health Aquaculture Inc., both based at the Natural Energy Lab of Hawaii on Hawaii Island.

With expectations for Thailand to increase its shrimp production from approximately 275,000 metric tons this year to more than 500,000 tons in 2005, that's fantastic news for Hawaii's $8-plus million shellfish industry, right? Well, it depends on who you ask.

James Wyban, president of High Health Aquaculture, 'Is "cautiously optimistic," at best.

"It sure sounds good, but honestly, I'm not sure it's goign to make any difference at all," he said. "There may be only three of us who received permits [to export], but they're requiring the Thai companies be permitted to receive imports and, so far, there are only two companies that have received permits. So whether all thos people who are begging for our animals will ever get them, I don't know. And whether my broodstock sales will increase, I don't know."

Wyban, a 10-year-plus veteran of the shrimp industry, says he's been in the business long enough to know better than to get his hopes up too high.

Competitor Brian Goldstein, president of Kona bay Marine Resources, who started with the company in 2002 after more than 15 years in the enterprise software industry, is slightly less jaded and much more optimistic.

He expects Thailand to be his company's top customer as early as next year - surpassing Indonesia, Vietnam, China and Taiwan - and says the company already can't keep up with demand from the area.

"We have on order right now, probably about 30,000 animals, but we don't have that many to ship out. So we're already backordered about four months," said Goldstein, adding that the delivered price of a male/female pair of broodstock shrimp to Thailand is around $60. "And it's only going to get worse. Or better, I should say."

One thing both companies agree on is that white shrimp exports from Thailand to the United States will probably increase, following the recently imposed tariffs on six countries charged with dumping shrimp on the U.S. market at prices below cost. Of the six, Thailand received the lowest duty rate and, as a result, its U.S. market share will likely rise, along with its demand for white shrimp broodstock.

"That does help...and we are pleased the border is open again. Thailand should...become on of our leading markets," said Wyban. "But based on my experience, selling into Asia's really complicated. And until they license more hatcheries to buy our animals, we're still stalemated.