W32: Shrimp Update

In W32 in the shrimp landscape, the global shrimp industry faced challenges in the first six months of 2023 due to declining prices, rising demand, and increasing production costs, according to a report by Rabobank. The combination of low demand from Western markets and high supply from major producers like Ecuador has created a challenging environment for shrimp producers and exporters worldwide.

Shrimp imports to the United States (US) reached 61.8 thousand metric tons (mt) in Jun-23, a decrease from 76 thousand mt imported in the same month in the previous year. In 2023 so far, US shrimp imports reached 360.4 thousand mt. As the largest shrimp exporter, India exported 23.2 thousand mt of shrimp in Jun-23, reflecting a decline from 31.5 mt in the previous year. Furthermore, Ecuador exported 17 thousand mt of shrimp to the US, a decrease from 19.6 thousand mt exported in Jun-22. Meanwhile, Indonesia exported 10 thousand mt, slightly lower than its exports in Jun-22. Vietnam maintained its position as fourth largest shrimp exporter to the US, exporting 5.5 thousand mt in Jun-23, compared to 7.1 thousand mt in Jun-22. Thailand secured the fifth spot, exporting 2.2 thousand mt, while Argentina exported 1 thousand mt, Mexico exported 742 thousand mt, Canada exported 477 mt, China exported 386 mt, and lastly, Peru exported 263 mt of shrimps.

The Vietnamese Ministry of Agriculture and Rural Development reports a 25.4%year-over-year (YoY) decrease in seafood exports to USD 4.95 billion in the first seven months of 2023. Shrimp production reached 590.1 thousand tons by the end of Jul-23, an increase of 4% YoY. Shrimp prices decreased during the primary farming season in Vietnam, Ecuador, India, and Indonesia, while exports stalled. In Jul-23, tiger shrimp and raw white shrimp prices in the Mekong Delta reached their lowest level since Jan-23. The large ice-marinated tiger shrimp prices decreased by USD 0.81/kg (VND 19,300/kg) in Bạc Liêu to USD 7.85/kg (VND 187,000/kg). Also, prices for ice-marinated shrimp declined by USD 0.13/kg (VND 3,000/kg) since Jun-23, reaching USD 3.99/kg (VND 95,000/kg).

A shrimp farmer from Thanh Phong commune acknowledged the comparatively lower prices than previous years. Similarly, white shrimp prices have also seen a decrease, with 30 pieces standing at USD 5.04/kg (VND 120,000/kg) and 50 to 60 pieces priced in the range of USD 3.36-3.99/kg (VND 80,000-95,000/kg). Furthermore, the Vietnam Association of Seafood Exporters and Producers (VASEP) forecasts that shrimp exports will reach USD 3.5 to 3.6 billion in 2023, a 16 to 18% YoY decline. However, VASEP predicts a favorable export outlook for the second half of 2023 due to positive economic trends, rising import requests from the US and China, and inventory reduction.

Lastly, ​​the demand for Indian shrimp in China continues to be subdued in Aug-23, leaving exporters unsure about the timing of demand recovery. In W32, exporters holding established annual contracts for specific shrimp varieties are still sending shipments to significant Chinese buyers. However, other exporters are exploring alternative markets to compensate for the current shortage in demand.