W35: Shrimp Update

In W35 in the shrimp landscape, Camara Nacional de Aquacultura (CNA) reported that Ecuador's frozen shrimp exports decreased by 3% year-over-year (YoY) in volume and 23% YoY, reaching an 18-month low in Jul-23, according to the National Chamber of Aquaculture. Ecuador exported 100.1 thousand tons of frozen shrimp worth USD 504 million in Jul-23, but the average export price per unit fell 21% YoY to USD 5.03 per kilogram (kg), the lowest since Feb-21.

China remained the primary market of Ecuadorian shrimps, with export volumes falling in Jul-23 by 4% YoY to 53.2 thousand metric tons (mt) and export prices falling by 25% to USD 4.62/kg. From Jan-23 to Jul-23, shrimp exports from Ecuador to China increased by 32% in volume to 428.8 thousand tons but only 9% in value as the average unit price fell by 18% to USD 5.11/kg. On the other hand, in the first seven months of 2023, shrimp exports to the US declined by 3% to 114 thousand tons, and values fell by 16%, with the average export unit price down by 13% to USD 6.20/kg.

The National Aquaculture and Fishing Authority of Colombia (AUNAP) has announced that an agreement has been reached in W35 between Colombia and the US to allow the export of Colombian shrimp to the US market. This agreement opens new opportunities for Colombia in the US market, and marks the culmination of a certification process that began in the 1990s. The certification process is expected to be completed by Sep-23, paving the way for Colombian shrimp to enter the US market.

Lastly, shrimp farming in the Mekong Delta, Vietnam, is experiencing significant growth, but shrimp farmers face various challenges. Shrimp prices have been increasing since Aug-23, and forecasts suggest this upward trend will continue until the end of 2023 and possibly into Q1-24. Shrimp prices have increased by an average of USD 0.21 to 1.04/kg (VND 5,000 to 25,000/kg) since mid-Jul-23, with fluctuations occurring two to three times a day. The demand for raw shrimp exceeds the available supply, partly because some farmers have stopped stocking shrimp due to losses. The market is experiencing instability due to farmers discontinuing stocking while processing factories increase their purchasing and processing activities.