W21: Shrimp Update

In W21 in the shrimp landscape, the Vietnamese shrimp is the main export seafood product of the country, accounting for 40%-50% of the total export turnover. VKFTA is a bilateral FTA between Vietnam and Korea, facilitating trade and import tariffs. VASEP proposes to review and abolish the shrimp import quota, optimize the shrimp quota bidding mechanism, coordinate with ministries, branches, localities, and the Vietnamese Embassy in Korea, and invest in improving technology and production lines. Also, VASEP organized a seminar to develop breeding stock and prepare raw materials for export, with the participation of shrimp exporters, management agencies, and scientists. By April 2023, seafood exports had only reached over USD 20.6B, a 31% lower than the same period in 2022. Shrimp from the Southern Hemisphere have also entered the crop early, increasing the price drop. Shrimp farmers in Vietnam are worried about losses due to a 30% decrease in the price of Black tiger shrimp. Investment costs have increased, and high-tech farming households have suffered heavy losses. The total export turnover in Cau Mau province in the first three months of 2023 reached USD 275M, a decrease of 26% YoY. Vietnamese shrimp processing and exporting enterprises face difficulties due to a lack of collateral and credit institutions, and high loan interest rates. In Japan, the Japan Shrimp Association will hold a 7-day event from June 6-12, 2023, "More Sea You Will Love Ebi Fes! 2023 in OSAKA". It includes tasting a variety of shrimp dishes, learning about marine litter and food loss, and the "All Japan Shrimp Championship". In addition, IBIDEN Bussan, a dry food manufacturer in Motosu City, Gifu Prefecture has developed a 100% plant-based "alternative food" that looks like a shrimp but is not a shrimp, which is 100% plant-based and has less than half the calories and fat compared to real shrimp.

Shrimp imports to the US, EU, and Japan decreased by 62%, 31%, and 50%. Shrimp farmers in Louisiana State have asked the US government to limit shrimp imports to prioritize domestic consumption. Indonesia exported USD 5B of shrimp, while Egypt's imports fell 67.3% in February 2023. Ecuador's farmed shrimp exports increased after China lifted its Zero COVID-19 policy, despite the efforts to reduce dependence on the Chinese market. In Argentina, the shrimp prospecting in national waters within the ban on juvenile hake was postponed until Monday, May 29, 2023 due to weather alert reports. Marketers are facing low demand and falling prices, so the postponement may help improve the situation.