W18: Shrimp Update

In W18 in the shrimp landscape, India's shrimp sector will see revenue grow 5% in the 2024 fiscal year due to increased demand from China. This growth will be largely volume-driven, allowing the operating margin to bounce back to 7.5%. India supplies 70% of its products to the US, EU, and China. US shrimp processors asked the US ITC to maintain its anti-dumping duties on India, Thailand, and Vietnam. Also, the US shrimp imports decreased in February 2023 due to a supply surplus, with India, Ecuador, Vietnam, China, and Honduras all witnessing a sharp decline in exports to the US. India was the top shrimp supplier for the US, accounting for 37% of the market share. Ecuador was the second largest supplier, accounting for 29% of the market share. Vietnam's shrimp exports to the US decreased significantly due to record inflation, reduced purchasing power, and high inventories. Further in Vietnam, the price of white-leg shrimp has dropped sharply, leading to heavy losses for high-tech farmers. Investment costs to raise hi-tech shrimp are high, and the price of food, veterinary medicine, electricity, and labor has skyrocketed, leading to heavy losses for fishermen. Minh Phu Seafood Corporation, Vietnam’s leading shrimp exporter, reported an after-tax loss of USD 4.05M (VND 95B) in the Q1 of 2023.

American Shrimp Processors Association (ASPA) has contracted with Global Trust Certification, Ltd. to complete sustainability assessments of the Gulf of Mexico shrimp fishery for both the Marine Stewardship Council (MSC) and Certified Seafood Collaborative (CSC) certifications. CSC's RFM Certification was the first seafood sustainability certification program to achieve the GSSI benchmark in 2016. Lastly, prawn producers in Bangladesh are looking into the use of commercial probiotics in all culture phases of giant prawn production as it would significantly improve output and increase revenue.