MMR Shrimp: Latin America consolidates market share in key European markets

The increase in Argentinean shrimp sales was a key feature in several European shrimp markets during 2001 / 2002. This year Brazilian, and increasingly Ecuadorian, shrimp products are making the biggest impact.

Argentina’s landings of wild shrimp reached a record 83 500 MT during the 12 month period to June 2002. This figure was more than double the level for the previous 12 months.

A result of this increase was a strong penetration of Argentinean shrimp in both the Spanish and Italian markets. Since the peak in landings, there has been a decrease to 47 000 MT (year ending June 2003) and this is reflected in lower imports into Spain and Italy this year.

The strong expansion in shrimp farming in Brazil has, in contrast, lifted this country into the top position as volume supplier to the French market this year. Brazil has also taken over the second position among frozen shrimp suppliers to Spain. Similarly, the revival of the Ecuadorian farmed shrimp industry is reflected in a strong evolution of first half 2003 sales to both Italy and France.

Spain: Argentina remains a key supplier despite production decline

For the first 5 months of 2003, Spanish frozen shrimp imports are down 15% to 37 000 MT. A key factor is the decline in Argentinean imports which have fallen over 50% to 7 000 MT compared to January – May 2002. Argentina’s share of frozen imports dropped from 34% in 2002 to just 19% this year. Despite this decline, Argentina remains the leading shrimp supplier to Spain.

In second position, Brazil has overtaken Morocco this year thanks to the strong development of the Brazilian farmed shrimp industry. The Brazilian share of Spanish volume imports has increased from almost 4% in January – May 2002 to 7.5% during the current year. Other countries showing significant volume penetration of the Spanish market so far this year include Senegal (+ 93% to 1 200 MT) and Ecuador (+ 59% to 1 200 MT).

France: Brazil now the leading shrimp supplier

France continues to increase its imports of shrimp. Following an 8% increase in 2002, imports for the first 6 months of this year are up 11% to almost 39 000 MT. 2003 should therefore be another record year. The increase in imports is being fuelled by weak prices. Average unit values are down 11% for the January – June period.

Frozen shrimps account for almost 80% of total imports. Compared to the first half of 2002, frozen volumes this year increased by 10% to over 30 000 MT. Thanks to a very competitive pricing strategy, Brazil is increasingly dominating this category. Brazilian supplies increased by 90% during the first half of this year while its unit values dropped around 30% to less than €3.70/ kg which compares to almost €6/kg for frozen shrimp imports as a whole. Brazilian whole frozen shrimps are generally processed in France and sold on to the retail sector for sale in chilled whole cooked form.

If Brazil is the number 1 supplier to France in volume terms, Madagascar remains by far the leading supplier in value terms. Despite relatively high unit values, over €10/ kg, shrimp from Madagascar enjoys a strong position in the French market. This is due both to close links between the 2 countries and to a positive image for the product in France. The value of imports from Madagascar are up 14% to over €47 million for the first half of this year.

Italy: Ecuador increasing market share

Italian shrimp imports for the first 6 months of 2003 are down 4% on last year to 23 300 MT. The value of imports is down slightly to less than €154 million. In the frozen (unprepared) category, imports are down 7% to 19 500 MT. This decline can be accounted for, as in the case of Spain, by a sharp fall in supplies from Argentina, down almost 60% to 3 000 MT. The Argentinean share of Italian frozen shrimp imports has fallen from 36% in 2002 to 16% this year. This trend can be linked to a 40% increase in unit values for Argentinean shrimp, to €9.12/kg.

The Spanish share of Italian imports is also down, from 13% during the first half of 2002 to 10% this year. The reduction is also due to the reduced availability of Argentinean shrimp as Spain is a re-exporter of this product to Italy.

The gap in supplies from Argentina is being filled by increased imports of frozen shrimp from both Latin America and Asia. As in other markets, the penetration of Ecuadorian shrimp appears to be returning to former levels. Ecuador is the leading supplier of frozen shrimp to Italy this year with a share of imports of 16%, up from 10% last year. The increased penetration of Ecuadorian shrimp has been helped by more competitive pricing. Average unit values for the product have fallen by 15% to €5.52/kg.

OUTLOOK

Current indications suggest that first half trends regarding supplies of Latin American shrimp into Europe will continue into the second half of this year. General projections for increased Brazilian shrimp projections are positive while Ecuadorian shrimp exports for the first 7 months of this year are up 12% on the same period last year. The negative trend in Argentinean shrimp landings shows no sign of change with landings for the January – July period down 24%. The firming of Argentinean shrimp prices should however be more than balanced by continued weakness in farmed shrimp prices in European markets.

© 2003 FAO
Gerry O'Sullivan