Global farmed shrimp prices continue to fall

In China, the vannamei market was sluggish this week, with shrimp prices generally falling by 1-3 yuan per kilogram in many places. Since the beginning of June, factors such as weak consumption, heavy rain and high temperature weather, and the impact of diseased shrimp have exacerbated the decline in shrimp prices, putting farmers under great pressure. As one of the world’s major producers of farmed white shrimp, China is facing the dual challenges of weak demand and surging supply. The seasonal price decline this year has been particularly significant, with the price of 60/kg shrimp falling by 22% and the price of 80/kg shrimp falling by 25% compared with the same period last year. Domestic media reports show that the sluggish market has caused many producers to suffer losses. As high production is expected to continue until June and July, it is unlikely that prices will rebound in the short term.

In the global market, the prices of vannamei in countries such as Indonesia, India, Ecuador and Vietnam are generally lower, and the prices in some areas have fallen below the production cost. Take Vietnam as an example. According to data from Vietnam Seafood Processing and Export, in the first five months of this year, Vietnamese enterprises exported shrimp to 103 markets, bringing in US$1.3 billion, an increase of 7% over the same period last year. In Japan, Vietnam’s shrimp exports to Japan were US$183 million, down 4% over the same period. In the first five months of this year, Vietnam’s shrimp exports to China and Hong Kong reached US$260 million, up 21% over the same period. The slight increase in exports in the same period is a positive sign, but the shrimp industry continues to face many challenges as the world economic situation shows no signs of recovery and inflation is high. The price of frozen white shrimp in Vietnam has fallen sharply in the past few weeks and is currently 92,300 Vietnamese dong (about US$3.63) per kilogram. The main reason is that supply chain problems have led to a decrease in demand for raw shrimp, and prices of all specifications have fallen by a similar amount.

Inflation remains high in this market, as do the costs of housing, gasoline and gas. In addition, freight rates have soared 40% since May due to wars in the Middle East and China collecting empty containers to ship goods to the United States before new tariffs expire. Vietnamese shrimp also have to compete fiercely on price with Ecuadorian, Indian and Indonesian shrimp in the U.S. market.

Shrimp consumption in the EU market was very slow in the first quarter of this year as the market was severely affected by the long-running war between Russia and Ukraine, the euro depreciated against the dollar, and freight rates soared by 60% due to turnover, with China collecting empty containers for export to the United States.

Elsewhere, prices for head-on, shell-on shrimp from Ecuador, the world’s largest exporter of white shrimp, remained stable in week 24 at $3.90 per kg for 20/30 and $3.50 per kg for 30/40. Although the April harvest pushed exports to a record high of 111,684 tonnes, U.S. anti-dumping duties have had an adverse impact on trade.

In Andhra Pradesh, India’s main aquaculture state, the price of 60 shrimp per kg, head-on and shell-on, fell to 265 Indian rupees (about 3.18 US dollars). Although the price of small shrimp fell by 13%, the price of large shrimp remained stable.

Indonesian shrimp prices fell across the board in the 24th week as the new anti-dumping duties affected the price of raw materials in Indonesia.

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