Weekly Product Updates

W48 Shrimp Update: Vietnamese Shrimp Exports and the Global Shrimp Council's Ambitious Campaign

Fresh Coldwater Shrimp & Prawn
Food Safety & Quality
Fresh Common Shrimp & Prawn
United States
Regulation & Compliances
Published Dec 8, 2023

Challenges Persist for Vietnamese Shrimp Exports

By the end of Nov-23, Vietnamese shrimp exports are estimated to reach USD 3.15 billion, reflecting a 22% year-over-year (YoY) decrease. Shrimp exports are dominated by price competition amid an excess of global shrimp supply and low selling prices. Exports to most major markets were lower than the same period last year, except for a few small markets such as Hong Kong and Switzerland, which increased by 5%, and Taiwan, which increased by 19%. Shrimp demand in Southeast Asia and the Far East is expected to improve towards the end of the year due to the Christmas, Lunar New Year, and Lunar New Year holidays taking place from Dec-23 to Feb-24. An increase in prices is expected during this period as total output is seasonally low.

The Vietnam Association of Seafood Exporters and Producers (VASEP) commented that the last two months of 2022 marked the period when seafood exports plummeted to the lowest level of the year (except for February during the Lunar New Year holiday). Although the total export turnover of seafood and some key products recorded positive growth in Nov-23, it has not shown a positive trend because compared to previous months, there was no breakthrough in sales. With current developments, shrimp exports in 2023 are estimated to reach about USD 3.4 billion, predicting a 21% YoY decrease.

In Q3-23, Vietnamese shrimp exporters faced significant challenges, grappling with a decline in sales value and reduced profits amid weak global demand. During the Jul-23 to Sep-23 period, Vietnam's global seafood shipments amounted to USD 2.5 billion, marking a 12% YoY decrease. Over the first nine months of 2023, the country's total seafood export value declined by 23% YoY to USD 6.6 billion. Notably, shrimp exports contracted by 26% to USD 2.5 billion. This downturn, initiated in Q4-22, resulted from subdued global demand and heightened competition from other exporting nations. Vietnam's leading pangasius exporter experienced a 17% YoY drop in sales value in Q3-23, contributing to a 29% YoY decline in revenue for the first three quarters of 2023.

NFI Hosts Global Shrimp Council for Pioneering International Campaign

The National Fisheries Institute (NFI), representing the United States (US) seafood industry, has agreed to host the Global Shrimp Council, which is spearheading an international campaign to promote the shrimp market. Launched at the Global Shrimp Forum in the Netherlands on September 6, 2023, the Global Shrimp Council is a producer-led promotional body focused on marketing and encouraging global shrimp consumption. NFI announced its collaboration with the organization on December 5 to establish a precompetitive partnership aimed at promoting US shrimp consumption. The council aims to raise between USD 8 million and USD 10 million to commence operations in 2024 and has enlisted the expertise of Miguel Barcenas, the creator of the successful "Avocados from Mexico" campaign, to outline its structure. The NFI is considered the perfect third party, providing participants with a reliable partner who is not a producer which can transparently hold the funds, manage them, and wire the money to its designated recipients based on the council's instructions.

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