W11 Shrimp Update: Vietnam's Shrimp Exports Surge as Mexico Implements Temporary Fishing Ban

Published 2024년 3월 22일

In W11 in the shrimp landscape, Vietnam's exports surged in Jan-24, reaching USD 242 million, driven by robust demand from China and Hong Kong, which saw a staggering 275% YoY increase. However, competition from Ecuador remains a challenge in the Chinese market. While the US, Japan, and Korea also showed positive growth, uncertainties loom, including the ongoing US anti-subsidy investigation and competition from other countries like India and Ecuador. Meanwhile, Mexico implements a temporary ban on shrimp fishing in specific Pacific waters to protect shrimp populations during their reproductive cycle, aiming to ensure sustainable aquatic resource management.

Vietnam's Shrimp Exports Start 2024 Strong, But Uncertain Future

Vietnamese shrimp exports started 2024 with a positive performance. Vietnam's shrimp exports reached USD 242 million in Jan-24, reflecting a significant 71% year-on-year (YoY) increase. China and Hong Kong emerged as the leading import markets, with a 275% YoY surge in Vietnamese shrimp exports, reaching USD 42 million on Jan-24. This growth is attributed to strong Chinese demand and import prioritization policies, potentially presenting an opportunity for Vietnam in 2024. However, competition from Ecuador, Vietnam's primary competitor in the Chinese market, is expected to remain a challenge.

The United States (US) market maintained its growth trajectory, with a 77% YoY increase in Jan-24, reaching USD 41 million. However, the ongoing US anti-subsidy investigation into shrimp imports from Vietnam, alongside competition from India and Ecuador, poses a potential uncertainty for future growth. Shrimp exports to Japan and Korea also exhibited positive growth, with a 30% and 21% increase in Jan-24, respectively. After a decline in 2023, the European market showed signs of recovery with a 22% YoY increase in shrimp exports during Jan-24.

Despite the positive start, Vietnamese shrimp businesses anticipate various challenges in 2024 that may hinder export recovery. Vietnamese shrimp faces stiff competition from Ecuador and India in price and supply. This oversupply situation could lead to a price reduction cycle extending into the H1-24.

Temporary Shrimp Fishing Ban Implemented in Mexico's Pacific Waters

The Mexican Ministry of Agriculture and Rural Development (SADER) has announced a temporary ban on the commercial use of all shrimp species in specific Pacific Ocean waters and specific coastal regions, effective March 20, 2024, in the Pacific Ocean waters within Mexico's federal jurisdiction, including the Gulf of California, lagoons, estuarine systems, marshes, and bays of Baja California Sur, Nayarit, Sinaloa, and Sonora. The restriction also encompasses the marine area between Ensenada, Baja California, and the Guatemala border.

The measure aims to promote the sustainable management and use of aquatic resources by protecting shrimp populations during their reproductive cycle. This includes safeguarding spawning stocks, reproductive processes, and the recruitment of juvenile shrimp into breeding and growth areas. The temporary ban is implemented based on technical recommendations from the Mexican Institute for Research in Sustainable Fisheries and Aquaculture (IMIPAS). The transportation of shrimp in any form from restricted coastal areas requires a validated and issued Fishing Guide from National Aquaculture and Fisheries Commission offices.