What's on tap for the Thai shrimp industry?

Thailand's shrimp industry is facing renewed scrutiny following Malaysia's suspension of Thai shrimp imports, which took effect on June 1 this year. The ban covers five species including whiteleg shrimp, black tiger shrimp, tiger prawn, banana shrimp and blue shrimp. Malaysian authorities stated the suspension will remain until Thai agricultural agencies submit a completed food safety standards questionnaire for formal reassessment.

The suspension appears linked to a trade dispute after Thailand restricted imports of Malaysian sea bass in May over concerns about chemical residues. Meetings held in early July suggest the issue may be on its way to resolution, though no confirmed outcome was mentioned in the article.

According to Kasikorn Research Center, Malaysia is Thailand's 11th-largest export market for shrimp, accounting for approximately 1% of Thailand's total global shrimp exports. Fresh, chilled and frozen shrimp make up 97% of shipments to Malaysia, with processed products comprising the remaining 3%.

However, the Malaysia situation is being described as a secondary concern compared to the longer-term structural challenges facing the industry. Thailand was once the world's largest shrimp producer and exporter, reaching peak production of 640,000 tonnes in 2010 with export value exceeding 110 billion baht. Following the outbreak of early mortality syndrome in 2012, annual production has fallen sharply to around 270,000 to 280,000 tonnes, with export value dropping to approximately 40 billion baht per year. In 2025, around 48% of production went to export while the remainder was consumed domestically.

The Thai Shrimp Association president Ekapoj Yodpinit noted that at the start of this year, the industry set a production target of 400,000 tonnes. If achieved, shrimp exports could exceed 250,000 tonnes.

For business owners and investors in Thailand, trade disputes involving food safety standards and import regulations can have ripple effects across related sectors including logistics, processing, and export compliance. Staying informed about regulatory developments and ensuring proper legal and compliance frameworks are in place remains important for those operating in or adjacent to Thailand's agri-food export space.

SLF Legal provides legal support for businesses and investors operating in Thailand. If you have questions about trade regulations, business compliance, or investment structures in Thailand, we are here to help. Feel free to reach out to our team in Koh Samui.