W3 Shrimp Update: Ecuador's Shrimp Industry Grappled with Safety Crisis Amidst Surge in Crime; Faced US Investigation for Alleged 'Dumping'

Vietnam's Shrimp Industry Adopts Technology and Strategies Amidst Global Competition

Present in over 150 countries, Vietnam's shrimp industryfaces intense global competition. The sector is adopting advanced technology and strategic planning to stay competitive. Ecuador's notable increase in shrimp production, reaching 2.5 million metric tons (mmt), adds to the competition. The southernmost part of Cà Mau province, in collaboration with the Research Institute for Aquaculture, Research Institute No. 2, successfully tested an innovative ultra-intensive three-stage whiteleg shrimp farming model. Based on recirculating aquaculture technology, this model reduces costs and increases production by over 20% compared to traditional methods. Provinces like Cà Mau and Bạc Liêu in the Mekong Delta are actively investing in aquaculture and shrimp farming infrastructure to boost the industry.

Vietnamese Shrimp Exports to the US Dropped 20% YoY from Jan-23 to Oct-23

Vietnamese shrimp exports to the United States (US) declined 20% year-on-year (YoY) in 2023, totaling USD 589 million from Jan-23 to Oct-23. Despite consecutive months of growth between Jul-23 and Oct-23, challenges are expected to intensify in 2024. The United States (US) Department of Commerce initiated countervailing duty investigations, announced on November 15, 2023, on frozen warmwater shrimp from Ecuador, India, Indonesia, and Vietnam,. These ongoing investigations and enhanced domestic protection measures advocated by the US shrimp industry could further impact Vietnamese shrimp exports to the US.

Ecuador's Shrimp Industry Threatened by Unprecedented Safety Crisis

The Ecuadorian shrimp industry faces unprecedented safety concerns, driven by a surge in crimes that threatens the closure of many processing plants within the year. In 2023, the industry witnessed 77 criminal incidents, leading to injuries and deaths. The security situation has intensified in 2024, causing fear and uncertainty among industry practitioners and severely impacting production activities. Despite stringent precautions, safety remains uncertain, rendering working and living conditions almost untenable. The recently elected President declared a state of emergency and imposed a curfew on January 8; however, violence, bombings, kidnappings, arson attacks, and gun battles persist, posing a significant threat to the Ecuadorian shrimp industry.

Ecuador's Shrimp Industry Under US Investigation for Alleged 'Dumping'"

The US International Trade Commission (ITC) initiated an investigation in Dec-23 against Vietnam, Ecuador, Indonesia, and India, prompted by allegations of 'dumping' filed by the American Shrimp Processors Association (ASPA) in Oct-23. ASPA's president asserts that the ITC's decision validates claims that imports from these countries have harmed domestic shrimp processors and harvesters by eroding market share and undercutting prices. Additionally, US industry groups express concern about the significant increase in low-priced shrimp imports, recording a 15.6% rise in shrimp product imports from 2020 to 2022.

Argentinian Shrimp Prices Declined Due to Abundant Catches

The Argentinian shrimp industry experienced a significant price decline, attributed to abundant catches and the impact of large quantities of low-priced farmed white shrimp (vannamei shrimp) in the market. While prices for large wild shrimp have remained stable in W3, smaller sizes (L2 and smaller) have fallen to approximately USD 5.25 to 5.50 per kilogram (kg) free on board (FOB), with some quotes going even lower. Production costs in Argentina have sharply risen since 2022, with an annual inflation rate reaching 211.4% in Dec-23, according to the country’s Bureau of Statistics.

Shrimp Dominates Indonesian Fishery Exports to Japan

From Jan-23 to Nov-23, exports of Indonesian fishery products to Japan reached USD 632.7 million. This value comes from 45% shrimp products, 25% tuna-skipjack, 8% pearls, 5% crab, and 3% squid-cuttlefish-octopus.