Increased European shrimp consumption during 2004

Key European markets imported record volumes of shrimp last year with consumption boosted by lower euro prices. Import volumes for Spain, France, Italy and Germany increased by between 1 and 11% compared to 2003. UK volumes were also up, +1% to a record 91 400 tonnes despite a decline in frozen (unprocessed) shrimp imports.

Increased Spanish imports of South American farmed shrimp in 2004

Although imports from Argentina, its number one supplier, declined last year, Spain increased overall volume shrimp imports thanks to a jump in sales of farmed shrimp from both Latin American and Asia. Argentina has dominated Spanish shrimp imports in recent years thanks to strong landings of the wild shrimp, Pleoticus muelleri. However, with Argentinean landings on a downward trend since 2002, sales to Spain have been decreasing with volumes down almost 30% last year. Despite this decline, Argentina remains the leading shrimp supplier to Spain in both volume and value terms.

The drop in wild shrimp sales to Spain last year was more than compensated for by increased volumes of Latin American farmed shrimp. Sales from Brazil jumped by 21% while volumes from Ecuador were up 40% to over 9 000 tonnes. This increase allowed Brazil to consolidate its position as second largest shrimp supplier to the Spanish market. Helped by competitive prices, the penetration by Brazil of the Spanish market has been striking in recent years increasing from less than 4 000 tonnes in 2001 to the current level of almost 18 000 tonnes. On current trends, Brazil should overtake Argentina as the leading volume supplier to this market in 2005. Parallel to the strong Latin American performance, there was also a strong increase in sales to Spain by a number of Asian suppliers notably Indonesia which almost quadrupled exports to 5 600 tonnes.

French shrimp imports pass 100 000 tonnes for the first time in 2004

French shrimp imports increased from 73 000 tonnes in 2001 to a record 101 000 tonnes (€531million) in 2004. This increase follows a sharp rise in sales of Brazilian shrimp to France over the period: from just under 6 000 tonnes in 2001 to almost 24 000 tonnes last year. With an import share of almost 24%, Brazil is now the leading supplier, in volume terms, to the French market having overtaken Madagascar during 2003. In the key frozen category (excluding chilled and prepared), Brazil accounts for 28% of imports followed by Madagascar at 14%.

As in the Spanish market, the increase in Brazilian sales to France in recent years has been helped by competitive pricing. Average unit values for imports of Brazilian frozen shrimps amounted last year to around €3/kg compared to an average of over €5/kg for all French frozen shrimp imports and to an average of over €10/kg for imports from Madagascar, the second largest shrimp supplier to the French market in volume terms. The relatively higher average prices for shrimp from Madagascar, due in part to its sales of large wild shrimp, has meant that Madagascar remains the largest shrimp supplier to France in value terms.

Canada lifts UK processed shrimp imports in 2004

UK shrimp imports exceeded 91 000 tonnes for the first time last year thanks to an increase in both processed and chilled shrimp volumes. The increase in processed imports was due to a more than doubling of sales from Canada, to over 7 000 tonnes, as well as to increases from Norway and Denmark. The increase in processed imports was achieved despite a fall in exports from Iceland, the leading shrimp supplier to the UK market.

Ecuador the leading supplier to the Italian market in 2004

Although Italian shrimp imports increased by 3% in volume terms last year, lower average euro prices meant that the value of Italian imports fell by 12% to €339 million. In the frozen segment, which accounts for over 80% of imports, import values fell by 13% with volumes up by 2% to almost 50 000 tonnes. The processed shrimp segment was the only one to grow in both value and volume terms.

The Italian market followed the Spanish trend last year with a shift in consumption from wild P. muelleri to farmed P. vannamei. Imports of frozen wild shrimp from Argentina, up to last year the leading supplier to Italy, fell by 34% to just over 6 000 tonnes. At the same time, sales of farmed shrimp from Ecuador increased by over 50% to 10 300 tonnes allowing Ecuador to become the number one volume supplier to Italy in 2004. As in Spain, the shift in imports from wild to farmed shrimp was helped by a significant price differential between the two categories, with average unit values for Ecuadorian shrimp at €4.32/kg compared to €8.03/kg for Argentinean shrimp.

European prices remain weak during first quarter of 2005

Indications from the first quarter of 2005 point to a continuation of some of the trends seen in European markets during 2004: weak euro prices and increased volumes. French figures for January this year show frozen shrimp imports up 20% on January 2004 but average values down 13%. Some traders are, however, anticipating a possible pickup in prices as the year progresses due to disease (Latin America) and tsunami induced supply constraints. The dollar / euro rate will also remain a key influence on price movements during 2005.

Gerry O’Sullivan
© 2005 FAO