US shrimp market trends: increasing imports with Asian suppliers dominating; average unit prices remain steady although still low compared to previous years.

US shrimp imports are back on a positive track and a new record now looks likely for 2005. During the first nine months of the year, shrimp imports increased both in terms of volume (+4% to 359 430 MT) and value (+1% to US$2 420 million) compared to the same period of 2004. Average unit values have, however, declined by 4%.

Suppliers

The import increase has not been evenly spread among suppliers and, as a result, there are changes in import shares. Some countries have managed to increase exports, despite the imposition of US import duties. Meanwhile, other countries subject to antidumping duties have exported less shrimp to the US market (Brazil, China and Vietnam). On the other hand, some smaller suppliers have improved their position with increased sales.

Asian suppliers have dominated imports this year accounting for 72% of total volumes, an increase of 4 percentage points compared to 2004. Meanwhile, the import share of Latin American countries declined from 25% to 23%. During the January – September period, Ecuador was the only Latin American supplier to export more than 10.000 MT.

Thailand remains by far the leading supplier, despite a 36 % decline during the first half of the year. During the third quarter, however, imports from Thailand increased strongly and during the full nine month period supplies from this country increased by 33% in volume and 25% in terms of value, despite antidumping tariffs. Thailand accounted for 31% of US imports and was the only country to export more than 100 000 TM to the US market. In terms of average unit prices, these exports show a 5% decline compared to same period of 2004.

Behind Thailand, Indonesia and Ecuador have overtaken China this year following strong increases from both countries. Both suppliers accounted for 11% of US volume imports representing increases of 21% and 29% respectively compared to 2004. The three leading supply countries represent 52% of total US volume imports.

Other suppliers benefiting from the increase in US imports included India, Malaysia, Guyana, Canada, Panama and Peru. On the other hand, China fell to fourth position and its exports registered a significant decline in both volume and value terms compared to 2004 (-29% and -36% respectively). Among suppliers to register declines included India, Bangladesh, Venezuela and Mexico, which showed falls of between 9% and 67%.

PRODUCTS

The general rise in US shrimp imports is based on an increase in frozen breaded and peeled shrimp. Imports of other categories dropped, with volume declines ranging between 1% and 67%. The category showing the biggest decline was “frozen, other preparations”.

Headless shell-on frozen shrimp: This was the main imported product, accounting for 47% of total shrimp imports. However its import share declined compared to 2004 when it accounted for 50% of total imports. Imports of headless and shell-on products declined in the smallest and largest size categories, while imports of medium sizes increased. Average unit prices remained stable for this category. However, for 26/30 and 15/20 counts, average unit prices fell by 8 % and 5% respectively.

For large sizes the major suppliers were India (31%), Vietnam (16%), Bangladesh (14%), Mexico (8%) and Indonesia (8%). These countries jointly accounted for 77% of imports of the large counts (<15 and 15/20). For medium sizes (31/40, 41/50 and 51/60) the larger suppliers included Thailand (33%), Ecuador (20%) and Indonesia (12%), which represented 65% of imports. Latin American countries dominated the smallest size grades (< 70 and 61/70). Ecuador, Venezuela, Thailand and Brazil represented 72% of imports of these counts.

Peeled frozen: Despite a drop of imports during the first half of the year, this category has since shown a positive trend. During the January- September period, imports of peeled frozen increased by 3% compared to 2004. The main suppliers were Thailand (26%), Indonesia (18%), Vietnam (13%) and Ecuador (10%).


Breaded frozen: This category recorded a strong increase. Compared to the same period of 2004, breaded frozen shrimp products increased 192% in terms of volume and 162% in terms of value. However unit values registered a significant decline compared to 2004 (-11%). China and the Thailand accounted for a significant part of the increase with US import sales for both countries jumping 352% and 69% respectively compared to same period of 2004. China accounted for 72% of total imports of this category, while Thailand accounted for 15%.


Latest trends
The holiday buying season which is supposed to have started, is as dull as most observers predicted, with quiet demand that can easily be satisfied with the current levels of supply and inventories. For some categories and origins, traders and wholesalers are forced to offer discounts in order to stimulate sales. However, a small increase in trade was observed during November, especially spot sales due to the Thanksgiving holiday, with shrimp becoming more and more popular in the list of luxury food for this occasion.

Meanwhile, the ‘bond’ and the ‘tariff’ issues' (imposed on importers of shrimp from countries affected by the anti-dumping measures) are causing a drop in the number of importers, as bonds are required now for the second year of shipments, while the first year bonds are still being held.

The Thanksgiving weekend is over and marketers concentrate again on the year end holiday buying period. Those who are most optimistic believe that the first weeks of December could show a pick-up in spot buying activity. However, intense activity looks unlikely particularly as the buying period has started slowly and as consumer demand conditions have not improved much so far.

Santiago Caro and Martin Leites (INFOPESCA)
© 2005 FAO