W40: Shrimp Update

In W40 in the shrimp landscape, India's frozen shrimp exports fell 13% year-over-year (YoY) to 66.8 thousand tons in Jul-23, with export value dropping by 23% YoY to USD 460 million. This decline has been ongoing for four consecutive months. The Indian shrimp export volume to the United States (US) market saw an 11% YoY increase,but a 10% drop in value. The Chinese market saw a 31% drop in shrimp export volume and a 46% drop in value. The Indian shrimp industry faces significant difficulties: shrinking demand and fierce competition. Furthermore, the Indian shrimp production in the second half of 2023 will be lower than in the first half, resulting in a full-year production drop of at least 15%.

Ecuador is a leading shrimp exporter, and is set to surpass India in shrimp exports as it faces disease-related challenges. Ecuador is on track to export 1.5 million metric tons (mmt) of shrimp in 2023, with China being the destination for 900 thousand mt in the first half of 2023. Ecuador anticipates a 15% rise in shrimp exports for 2023 as its adaptability and resilience make it a vital player in the global shrimp market. On the other hand, India experienced a 30% drop in broodstock imports, which will potentially lead to a significant production decline in the second half of 2023. Vietnam experienced a 31% drop in shrimp exports in Q1-2023 and a 39% drop in Q2 2023.

On the other hand, the shrimp industry in the US market is experiencing stabilizing prices, with shrimp import volumes increasing. In Jul-23, the US imported 69.5 thousand tons of shrimp, a 3% YoY increase. The value of shrimp imports was USD 571.3 million in Jul-23, a decrease of 8% YoY from USD 621.5 million. Just-in-time ordering, a trend in the industry, allows orders to be filled immediately, reducing costs and ensuring quick access to shrimp products. Ecuador is a prominent shrimp supplier for the US due to its proximity and lower transportation costs.

In Japan, black tiger shrimp wholesale prices in Tokyo fell by 13% YoY in Sep-23 due to an ongoing global downturn and lower import demand due to high domestic seafood supply. The wholesale shrimp prices drop was the largest in several weeks, reaching USD 14.45 per kilogram (JPY 2,145.25/kg). The lower domestic demand has also pressured the drop in prices, with Japanese shrimp imports lower than in 2022 and the five-year average since May-23. High shrimp import prices due to a weaker Japanese currency and increased domestic seafood supply caused by reduced exports from outright bans or market concerns about the release of wastewater from the Fukushima plant have affected demand for imported shrimp. Low global shrimp prices are expected to lead to reduced supply in the coming months, eventually causing global prices to rise.

According to the Vietnam Fisheries Association Chairman, Vietnam's shrimp export value has steadily increased since May-23. Despite a decline in export value in the first eight months of 2023, Vietnamese shrimp remains the primary component of the Vietnamese fisheries industry, contributing 40 to 45% of the total seafood export value annually. The VietShrimp 2024 event, scheduled for March 20 to 23, aims to improve the domestic shrimp industry's situation and promote sustainable development.