2004 an eventful year for the Chinese shrimp industry

There is no doubt that the major focus of the seafood industry in China during 2004 was shrimp. The US anti-dumping action relating to shrimp imports from China and other countries was a key issue for both the Chinese government and industry. With market prices for shrimp continuing to decline and exports also decreasing, shrimp producers experienced a difficult year. Nevertheless, consumers in China have never enjoyed such a good taste for shrimp as in 2004 and the product continues to increase in popularity.

Expansion of shrimp production continues in 2004

Preliminary statistics (not yet released) show that shrimp production in 2004 continued to expand. Volumes marketed within China increased following both increased domestic production and a reduction in exports. P. vannamei now dominates both production and markets within China. Other species such as P. chenensis, P. monodon, P. Japonica etc. witnessed a very stable production pattern with, however, depressed prices due to the pressure from P. vannamei.

Further decline in shrimp prices during 2004

Unlike other fish and fishery products, shrimp prices experienced a setback in 2004. Ex-farm prices for P. vannamei decreased to a low of 10-12 yuan/kg, down about 25% compared with prices in 2003. The chart below shows the price trend for P. vannamei throughout 2004 in the FUSHAN SHIWANYU wholesale market in Guangdong Province. Affected by P. vannamei, prices for other major species also witnessed a decline which varied according to the species.

Export markets diversified

Traditional markets for Chinese shrimp exports such as USA, Japan, South Korea shrank during 2004 (table below) while ASEAN markets expanded. The EU market also started to import Chinese shrimp following the lifting of restrictions on 6 July 2004. Last year, China exported about 3 255 MT of shrimp and shrimp products to EU markets. In total, China exported some 154 115 MT of shrimp and shrimp products worldwide in 2004, approximately 34 000 MT less than that exported in 2003.

Outlook

In view of both the level of domestic production and the reduction in shrimp exports in 2004, it is envisaged that shrimp production in China will be very much stable at current levels in 2005. Even though depressed shrimp prices affected the economic return to farmers, shrimp operations are likely to be profitable due to further technological improvements, good shrimp farming practices and reduced costs. The huge domestic market will also provide good potential for shrimp farmers. It is foreseen that market prices for shrimp in China will increase as shrimp become more and more popular among Chinese consumers in 2005. There is some uncertainty regarding shrimp exports due to the high custom tariffs imposed by USA. To maintain current momentum, Chinese shrimp exporters are likely to rely on the performance of EU markets during 2005.