W30: Shrimp Update

In W30 in the shrimp landscape, on May-23, the United States (US) shrimp market experienced a decline with imports of 62.4 thousand tons worth USD 522.6 million, a decrease of 17% in volume and 12% in value compared to 2022. Warehouse prices for frozen Asian vannamei shrimp 16-20 were USD 4.15-4.25/lb, and sizes 41-50 were USD 3.35-3.45/lb. The average price from all supplying countries and shrimp products was USD 8.39/kg (USD 3.81/lb), which was 12% year-over-year (YoY) lower but 2% above the average price in Apr-23. A 2% monthly increase in the market may not be significant due to the varying composition of shrimp products. Sea Lion International Vice President Donelson Berger reported a 17% YoY decrease in US shrimp imports. Additionally, Louisiana fishermen face a significant challenge due to the increasing demand for imported shrimp products, surpassing domestic demand. They have urged Congress to protect their industry from imports. The state legislature approved a bill offering tax breaks for commercial fishermen to compete with the influx of imported products.

Indonesian shrimp export data shows a 3% decrease in average value from January to May in the past three years. In the first five months of 2022 and 2023, the revenue will decrease by 25% and 11% in terms of export volume. The US is the main export destination, accounting for 63% of the export share, followed by Japan and China, accounting for 16% and 11%, respectively. In the past two years, Indonesian shrimp exports to the US and Japan have decreased by 19% and 6%, respectively, while China's export has increased by 52%.

Vietnam's shrimp exports reach 100 countries and territories, with major markets including Europe, the US, Japan, China, and Korea. Vietnam is the second-largest shrimp supplier globally, accounting for 13 to 14% of the global shrimp export value. The shrimp industry contributes 40 to 45% of the total seafood export value, equivalent to USD 3.5 to 4 billion. In 2022, Vietnam's shrimp export turnover reached USD 4.3 billion, an increase of 11.2% from 2021. In addition, Vietnamese brackish shrimp stocking increased by 6.4% YoY in Q1-2023, with tiger and white shrimp production reaching 467 thousand tons. However, shrimp export turnover only reached USD 1.56 billion, accounting for 38% of total seafood exports. Solutions include stabilizing farmers, avoiding massive harvesting, reducing drop density, and using large harvest sizes. Meanwhile, Thailand's Vannamei shrimp farm gate prices remain unchanged from W28, with 60-count at USD 3.52/kg, 70-count at USD 3.38/kg, and 80-count at USD 3.23/kg.

Ecuador's shrimp exports reached 107.4 thousand tons in May-22, up 13% in volume but down 6% in value. In the first five months of 2023, Ecuador's shrimp exports reached 496.7 thousand tons, an increase of 19% in volume, with a USD 2.7 billion export turnover. Ecuador's shrimp market continues to be dominated by China, with May-23 import output reaching 68.4 thousand tons, a significant increase of 40% YoY. However, exports to the US decreased by 15%, and Spain, which is the largest market for Ecuadorian shrimp, experienced a 35% decrease in imports. The average shrimp export price from Ecuador is USD 5.34/kg, showing a 17% month-on-month (MoM) decline. In comparison, China's average export price was USD 5.11/kg, and the US had a higher average export price of USD 6.17/kg.