Import volumes up in key European markets during first half of 2004.

In the approach to Christmas / New Year, industry indications in key European markets suggest a pick up in prices, particularly for Latin American farmed shrimp. However this trend is expected to be short lived. Assuming a continuation of the dollar / euro rate and a further growth in aquaculture production, shrimp prices in euro terms are expected to remain weak during 2005.

In volume terms, several European markets are likely to set new import records during 2004. Figures for the first half of the year show import volumes up in Spain, France and Italy compared to the same period in 2003.

Spain: volumes up 17% for the first half of 2004

Spanish shrimp imports passed the 140 000 tonne mark for the first time last year thanks largely to a more than doubling of imports from Brazil. Further increases from Brazil this year should also help set a new import record for 2004. Total Spanish imports were up 16% for the first half of the year compared to the corresponding period in 2003 with Latin American suppliers contributing significantly to the increase. Sales of frozen shrimp from Brazil almost doubled over the period while supplies from Ecuador, the third largest supplier, were up 140%. Imports from Argentina, still the main shrimp supplier to Spain, were up 13%. The various volume increases from Latin American suppliers have been accompanied by declines in unit values confirming the continued weakness in euro prices, at least for the first six months of this year.

France: increased market penetration for Brazilian shrimp

France imported over 94 000 tonnes of shrimp for the first time last year. On the basis of figures for the first six months of this year, total imports for 2004 could touch the 100 000 tonne mark. Volumes for the first half of the year are up 14%, to 44 000 tonnes, compared to the same period last year. As in Spain, Brazil is playing a key role in the upward trend in French imports. Its share of French frozen shrimp imports jumped from 25% during the first half of 2003 to 34% during the same period this year. Brazilian, as well as other Latin American supplies of P. vannemei remains the main raw material source for the French shrimp cooking industry. The sector has enjoyed a boom in recent years and its chilled whole cooked shrimp is now one of the leading seafood categories in French hypermarkets. Retail prices this year have been as low as €5.50/kg for the smaller sizes (80-100 pieces/kg) but there are signs that this situation will change in the approach to Christmas. Larger shrimp sizes from Brazil are now evident in French stores – 30 to 50’s per kg were retailing at the end of October in the Paris region at €12.99/kg. Some upward price pressure from Brazil has also resulted from lower than expected production this year. Volumes for the year are expected to be down some 10% on last year’s level of around 90 000 tonnes. This decline appears related to problems caused by above average rainfall levels in certain regions earlier this year.

UK: shrimp retail sales up despite fall in import volumes

Among leading European shrimp markets, the UK is the exception to the upward import trend this year. Total volumes are back 3% for the first half of the year compared with the first six months of 2003. The decline is due to an 11% drop in frozen warmwater shrimp imports following a fall in imports from India. In contrast, imports of processed shrimps are up 5% thanks to a boost in supplies from Norway and Canada.

Despite the fall in UK imports earlier this year, retail sales appear to positive with volumes up for the year ended mid August 2004 compared to the previous 12 months. According to TSN Superpanel data, increases in retail sales of chilled shrimps (both coldwater and warmwater) as well as frozen warmwater shrimp more than balanced a slight decline in sales of frozen coldwater shrimp.

Indications from the recent World Shrimp Markets conference in Madrid suggested a tightening in supplies of Latin American shrimp during the current quarter. In this context, import prices in euro terms can be expected to stabilize or show a slight upward tendency at least in the short run (although any further weakness in the dollar could alter this trend). Given projected increases in farmed shrimp production, competitive shrimp prices are, however, likely to characterize European markets again during 2005.

Gerry O'Sullivan
© 2004 FAO