Record year for imports as South American shrimp consolidates its penetration of key European markets during 2003

2003 looks set to have been another record year for volume shrimp imports in several key markets. Sales to the world’s largest shrimp market, the USA, increased by 19% to 460 000 MT during the first 11 months. This volume is 7% above the figure for the full year in 2002.

In Europe, French imports for the January October period were also up 19% at 75 000 MT and full 2003 figures for France are likely to be in excess of the record 79 000 MT for 2002 as a whole. Spain should also exceed its 2001 record of 133 000 MT. Spanish imports for the first 10 months of 2003 were up 10% to 109 000 MT. While Italian shrimp figures for 2003 are likely to be up on 2002 they will be below the record level of 2001 when strong Argentinean landings, and lower prices, of wild shrimp boosted imports. For the January – October period in 2003, Italian shrimp imports were up 8% to just under 44 000 MT. South American suppliers, notably Argentina, Brazil and Ecuador, remain key suppliers to these three European markets.

Among the leading world shrimp importers, Japan was perhaps the main exception during 2003. A 10% drop in average unit values for Japanese frozen shrimp imports was insufficient to boost imports, adversely affected by the sluggish Japanese economy during 2003. Volume imports of frozen shrimp for the January – November period fell 7% to 210 000 MT.

SPAIN: Increasing penetration of South American farmed shrimp

Frozen shrimp accounts for over 95% of total Spanish shrimp imports. Frozen imports for January – October last year were up just under 10% to 106 000 MT compared to the same period in 2002. The increase in imports came about despite a 3% unit price increase. This increase masks sharply contrasting price trends for the two leading suppliers to the Spanish market, Argentina and Brazil. Average unit values for Argentinean shrimp were up 57% while those for Brazil were down 23% compared to the first 10 months of 2002.

Argentinean landings of the wild Pleoticus muelleri declined in 2003 from the unusually high levels of 2001/2002. Prices increased as a result. Average unit prices for Spanish imports from Argentina were at €5.25/kg during 2002 while they jumped to €8.24/kg for 2003. Despite the increase, Argentina remains the leading shrimp supplier to Spain, with 22% of frozen imports, although its share was down significantly from a high of 30% in 2002.

Brazil, on the other hand, continues to expand farmed shrimp production, as well as its exports to European markets. During 2003, the country consolidated its position as the second largest supplier of frozen shrimp to Spain with volume sales up over 130%. Boosted by a 23% drop in average unit prices during the January – October period, it achieved a 10% share of Spanish imports, double the level of the previous year.

Other major suppliers to Spain include Morocco, down 15% in volume, and Colombia, up a third. Both these two countries each account for around 5% of Spanish frozen shrimp imports. The general increase in Spanish imports from Brazil and Colombia and the decline in supplies from Argentina and Morocco represent a shift from wild to farmed shrimp imports within the Spanish market.

FRANCE: Brazil now 25% of French frozen shrimp imports

The Brazilian performance in France during 2003 is just as striking as that in Spain. French imports from Brazil doubled to 15 000 MT during the first 10 months of the year confirming Brazil as the largest volume supplier to the market. The increase in sales of Brazilian shrimp continues to be underpinned by falling average prices. Unit values on sales to France dropped 27% to just €3.48/kg during the January – October period. This value compares to an overall average of €5.89/kg for frozen shrimp imports as a whole and €10/kg for shrimp from Madagascar.

Madagascar, which remains by far the most important shrimp supplier to France in value terms, still managed a 30% increase in volume sales despite its relatively high price levels. Historical links between the two countries have helped to promote close cooperation in the production and sales of shrimp and Madagascar’s shrimp products enjoy a positive image in the French market. This and the mix of large wild shrimp in supplies help explain the higher prices for product from Madagascar.

ITALY: Argentina still the leading supplier despite drop in sales

In contrast to both Spain and France, Brazilian exporters have to date taken limited interest in the Italian market. Nevertheless, volume sales, although small at around 600 MT for 10 months, increased by 41% during the January – October period in 2003. Given that average unit prices for Brazilian shrimp imports into Italy are some 50% higher than those in Spain or France, it is likely that Brazilian penetration of the Italian market will increase during 2004.

For 2003, Argentina was, once again, the leading frozen shrimp supplier to Italy. In line with trends in the Spanish market, Argentinean volume sales to Italy fell a third last year while average unit prices increased (Jan – Oct). Italian imports from Spain, which appear to be based on re-exports of Argentinean shrimp, were also down, 7%, in volume. On the other hand, sales from Ecuador were up 44%, pushing this country into second position as a supplier to Italy.

OUTLOOK: No significant pick up in prices in sight

While it is difficult to imagine the negative price trend for shrimps continuing through 2004, there appear to be few signs at present of a significant pick up in prices. Over the longer term, the proposed anti dumping action in the US market may, if it succeeds, have the effect of increasing price competition in non US markets. On the other hand, the somewhat more optimistic outlook this year in several major world economies suggests a boost to demand levels during the year. In addition, the current difficulties with poultry in Asian markets may have a similar impact. As usual, a key unknown remains the level of farmed, and wild, shrimp production during 2004.

Gerry O'Sullivan
© 2004 FAO