W51 Shrimp Update: Ecuadorian Shrimp Exports to China Drop and Vietnamese Shrimp Dominates the South Korean Market

Declining Ecuadorian White Shrimp Imports in China

In Nov-23, the quantity of Ecuadorian white shrimp products arriving at the Chinese ports continued its decline for the fourth consecutive month, reaching 50 thousand metric tons (mt) with a value of USD 245 million. China's total warm water shrimp import volume in the same month was 74 thousand mt, valued at USD 395 million. Among the top five source countries by quantity, Ecuador led with 50 thousand mt, followed by India with 11.7 thousand mt, Argentina with 2.6 thousand mt, Thailand with 2.2 thousand mt, and Indonesia with 1.6 thousand mt. The monthly data revealed a 6.46 thousand mt decrease in warm shrimp arrivals compared to the previous month, resulting in a USD 2.3 million decline. For the first 11 months of 2023, China imported a total of 916.5 thousand mt of warm shrimp, amounting to USD 4.99 billion. Ecuador remained the primary supplier, contributing 70.5% of total shrimp imports with 646 thousand mt, worth USD 3.3 billion. Ecuador's pivotal role underscores its significance in shaping the dynamics of China's shrimp market.

Vietnam Dominates South Korea's Shrimp Market Despite Decline in Exports

In the first 10 months of 2023, Vietnam emerged as the primary source of various shrimp varieties for South Korea, contributing to a turnover of USD 295.4 million. Despite an overall 20% year-over-year (YoY) decrease in shrimp exports from Vietnam to South Korea, Vietnam maintained its position as the leading supplier, accounting for 46.1% of the market share. South Korea's total shrimp imports amounted to USD 640.2 million, reflecting a 21.9% YoY decline.

Despite facing challenges, the Vietnamese shrimp industry remains optimistic, as South Korea's projected annual shrimp demand growth of 8.9% over the next decade presents significant opportunities. To capitalize on this potential, Vietnamese businesses must adhere to strict food safety, quarantine, and environmental standards outlined by South Korean importers, ensuring sustained success in this lucrative market.

Projections indicate that the output from aquatic exploitation is expected to reach 3,861 million metric tons (mmt), while aquaculture is estimated to contribute more than 5,408 mmt. In terms of exports, the target is set at 3,861 mmt, with an ambitious goal of achieving USD 9.2 billion in export revenue. Notably, a significant focus in exports is directed towards shrimp, aiming to generate about USD 3.45 billion. In the context of expanding international collaboration, Vietnam is actively advancing two export Protocols, specifically addressing processed exploited aquatic products and live aquatic products, in partnership with China. This initiative includes ongoing discussions, as evidenced by the reception of a draft Protocol from the Chinese side, particularly concerning live seafood. This strategic move signifies Vietnam's commitment to enhancing trade relations and ensuring adherence to established protocols in the crucial aquatic products.