Opinion
W17: Shrimp Update
Published May 5, 2023
In W17 in the shrimp landscape, it was reported in India, Tamil Nadu's shrimp hub is facing heavy losses due to a viral disease that has led to the deaths of a lot of crustaceans. The white spot disease has impacted about 40ha of Nagapattinam's shrimp production. In Iran, the Deputy Minister of Jihad Agriculture and Head of Iran Fisheries Organization has announced plans to produce more than 40KT of shrimp in Khuzestan province. The project has the potential to produce 900T of shrimp and will increase the production capacity of the province by 70%, and generate USD 5M. The Prime Minister clarified that another 6Kha of suitable land for shrimp cultivation is on the agenda. In February 2023, the US imported 52,889 tons of shrimp. India, Ecuador, and Indonesia were the top three suppliers, with India providing 19,566 tons. Shrimp imports increased in both volume and turnover compared to February 2022, but decreased in both volume and turnover compared to February 2020. In Vietnam, the mid-April heat wave caused an outbreak of diseases in farmed shrimp due to its high temperature of 35°C. Shrimp exports to the US, EU, and China have been down 33% and USD 600M due to inflation, reduced purchasing power, and high inventories. Japan is Vietnam's largest shrimp export market. To increase competitiveness and exports, enterprises need to optimize costs, develop added value, improve product quality, and change product structure. Australia is Vietnam's second largest shrimp export market in the CPTPP market, accounting for 27% of its total shrimp export value. In 2022, Vietnam's shrimp exports to Australia reached USD 272M, a 44% increase compared to 2021. The exported value of live/fresh/frozen white shrimp and giant tiger prawn products recorded a strong 3-digit growth. Vietnam has maintained its rank 1 position in shrimp supply to Australia, with the market share of Vietnamese shrimp increasing from 32% in 2015 to 69% in 2022. Undercooked shrimp are still subject to strict inspection steps in Australia. Lastly, the U.S. National Oceanic and Atmospheric Administration released preliminary shrimp landings data from the Gulf of Mexico and South Atlantic in January 2023, down from 6.6M pounds in 2022. Louisiana accounted for 41.7% of all landings, and Alabama accounted for 19.4%. Prices for 31/35 count size shrimp fell from USD 4.37/lbs to USD 2.89/lbs.