Weekly Product Updates

W44: Shrimp Update

Fresh Common Shrimp & Prawn
Seafood
Ecuador
Market & Price Trends
Frozen Coldwater Shrimp & Prawn
United States
Published Nov 8, 2023
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In W44 in the shrimp landscape, the Vietnam Association of Aquatic Products Exporters and Producers (VASEP) estimates Vietnam's seafood exports to reach USD 9.0 billion in 2023. Among the top export products, shrimp is expected to have the largest share with an estimated value of USD 3.5 to 3.6 billion; pangasius comes in second with a value of USD 1.7 to 1.8 billion, followed by tuna and squid, at USD 870 million and USD 650 million respectively.

By the end of Jul-23, Vietnam’s seafood export reached USD 7 billion, resulting in a 25% year-on-year (YoY) decrease. The main reason behind the decline is the weak demand for significant export products, such as shrimp and tuna. However, VASEP expects an increase in the seafood demand in the second half of 2023, based on optimistic expectations of economic recovery in major export markets such as the United States (US) and China.

Furthermore, Vietnam's seafood exports to the United Kingdom (UK) are expected to increase in 2023 and maintain a double-digit growth from 2022 to 2025, benefiting from the UK-Vietnam Free Trade Agreement (UKVFTA). Under this agreement, Vietnamese seafood products can enter the UK market with zero tariffs. This will create a competitive pricing advantage for Vietnamese products, especially when compared to other market players such as China, Thailand, Malaysia, Indonesia, the Philippines, India, and Brazil. Consequently, leading to a significant increase in exports.

In Sep-23, Ecuador exported 107,361 metric tons (mt) of frozen Vietnamese shrimp, valued at USD 548 million. The average export price in Sep-23 was USD 5.10 per kilogram (kg), representing a 2.8% month-on-month (MoM) increase, but still about 20% lower than the price in the same period last year. China was the top destination for Vietnamese shrimp, receiving 62,403 mt, with an average price of USD 4.81/kg. It presented a 10% YoY increase in the export volume and a 15% YoY decrease in the export value.

Meanwhile, from Jan-23 to Sep-23, Ecuador exported 912,211 mt shrimp products, witnessing a 15% YoY increase. The export value was USD 4.82 billion, presenting a 5% YoY decrease. The average export price was USD 5.28/kg, with an 18% YoY decrease.

Lastly, on October 25, a group of businessmen in the US filed a formal complaint, calling for an investigation on alleged dumping and subsidy practices applied to shrimp imported from Ecuador, Indonesia, India, and Vietnam. It is worth noting that this is not the first formal complaint against Ecuador. In 2004, the country received its first anti-dumping lawsuit, followed by a second one in 2021 for alleged subsidies. In both instances, Ecuador emerged victorious.

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