Prepared by INFOPESCA

China, Vietnam and Brazil increase share of US shrimp

Expanding farmed shrimp production in China, Vietnam and Brazil is reflected in increased shares for these countries in US shrimp imports this year. In contrast, Thailand and India, key suppliers to the US market, have both seen a reduction in their respective share of US imports during the first half of the year.

2003 - Another record year

2003 looks set to be another record year for US shrimp imports. Figures for the first half of the year show volumes up 14% on the same period last year to 195 000 MT. Total US imports for 2002 as a whole reached a record 430 000 MT and on current trends 2003 imports should pass the 475 000 MT mark for the first time. The increase in US shrimp imports in recent years has been helped by weak global shrimp prices due in part to increasing farmed shrimp production. EU restrictions on imports from certain origins have also resulted in increased offers to the US market further contributing to downward price pressure.

THAILAND, the world's leading shrimp exporter, is also the leading shrimp supplier to the USA, accounting for over a quarter of volume imports, or 115 000 MT, in 2002. However, the Thai share of 25.6 % of imports for the first 6 months of 2003 compares to 27.9 % for the same period last year. This share decline, despite a 4.5 % increase in Thai sales to the US, is due to strong increases in exports from other Asian as well as Latin American countries.

CHINA, the largest producer of farmed shrimp and the second largest supplier to the US market in 2002, increased exports this year by over 60 % to 18 000 MT. This increase in Chinese sales is no doubt linked to ongoing restrictions on its farmed shrimp products in the EU, a measure which has forced China to focus on alternative markets. The Chinese share of US imports is 9 % this year compared to 6.4 % for the first 6 months of 2002.

VIETNAM, another expanding Asian producer, increased sales by 46 % to almost 22 000 MT for the January - June period this year giving it a share of US imports of 11 %. From Latin America, Brazil is up almost 50 % to 14 000 MT equivalent to a 7 % share in US imports for the first half of this year compared to 5.4 % for the same period in 2002. Brazil has rapidly become the leading shrimp supplier to the French market and on current trends should become a much bigger player in the US market also. Finally, the recovery in the shrimp aquaculture industry in Ecuador is reflected in a 16% increase in US imports to 20 000 MT. However the Ecuadorian share of US imports remains largely unchanged at 10 %.

It is interesting to note the progress of US imports of Iranian shrimp. In 2002, imports from Iran amounted to just 500 MT. For the first 6 months of this year imports were almost 1 000 MT. While it is unlikely that this rate of increase is sustainable, the profile of Iranian shrimp appears to be increasing with at least one major French retail chain recently promoting the product.

OUTLOOK:

At the beginning of the second half of 2003, stable demand conditions in the US market mean that there is no immediate prospect of a price lift. In fact with above average inventories of black tiger prawns and no apparent shortage of white shrimp supplies from Latin America and Asia, prices may weaken further over the coming months. The strong import supply situation has been reinforced by increases in domestic shrimp landings over the July August period and this is urther adding to the uncertainty faced by importers. The reluctance to build inventory may mean continued downward pressure on prices going into the final quarter.