Argentina and Brazil: Key Players in European Shrimp Markets in 2002

The US showed signs of a slowdown in shrimp imports at the start of the fourth quarter of 2002. Volume imports were down 12% to 43 000 MT in October compared to October 2001. Despite this decline, US imports for the first 10 months of 2002 are up 7% on the same period for the previous year. This latter trend is in line with import trends in other key shrimp markets with Japan, Spain, France and the UK all showing volume increases for the first 9 to 10 months of 2002.

The Italian market remains an exception with imports down 5% during the January - September period. All markets continue to show a decline in the value of shrimp imports in 2002. Unit import values for frozen (unprocessed) shrimp are down at least 14% on 2001 values in the main European markets.

Argentina Consolidates Position

Spanish frozen (unprocessed) shrimp imports were up 3% for the first 9 months of 2002. This increase is largely based on sales of wild shrimp (Pleoticus muelleri) from Argentina. Argentinean shrimp increased its share of Spanish frozen shrimp imports from 22% to 30% over the 2001/2002 period (9 months). Other countries to increase sales of frozen shrimp to Spain last year include the Netherlands (re-exports of warmwater shrimp) and Brazil which now accounts for over 4% of Spanish imports.

Increasing Market Share for Brazil

The Brazilian performance is more striking in the French market where Brazil looks set to be the leading supplier of frozen shrimp in 2002. Brazil is exporting whole frozen Penaeus vannamei shrimp to France where it is cooked and sold in retail markets in whole chilled form.

The strong Brazilian performance has been helped by competitive pricing. Average unit values for Brazilian imports into France are at less than €6 / kg. Typical retail prices for the cooked product in French hypermarkets were around €10 / kg during the fourth quarter of 2002. While Brazil is set to replace Madagascar as the leading shrimp supplier to France in volume terms, Madagascar remains by far the most important supplier to France in value terms.

Sales of Madagascar shrimp to France, which includes both wild and farmed product, were worth €85 million for the first 10 months of 2002.

The average unit value for Madagascar's shrimp sales is over €10 / kg, one of the highest among shrimp exporters to France. This value is explained not only by the presence of wild shrimps in exports from Madagascar but also by larger average sizes compared, for example, to Brazilian shrimps. Despite a 7% decline in the overall value of French shrimp imports in 2002 (10 months), Madagascar managed to increase the value of its sales to France by 15% over the period.

The strong increase in imports of frozen warmwater shrimp from the Netherlands, a feature of French imports during the first half of 2002, was not maintained during the second half of the year. In value terms, however, the Netherlands is the second most important supplier to France over the first 10 months of 2002 with total sales (all categories of shrimp) of €47 million.

Shift from cooked & peeled to whole frozen imports

UK shrimp imports during the January - September period in 2002 were characterized by a switch from cooked and peeled to whole frozen shrimp due, apparently, to a sharper fall in the price of the latter. The overall value of UK shrimp imports for the period is down 5% on 2001. In the whole frozen category, India consolidated its leading position by increasing import share from 22 to 27%. Bangladesh moved up to second position following a sharp decline in imports from Indonesia.

Outlook

Going into 2003 there are no indications of a return to higher shrimp prices in European markets. Medium term output predictions in a number of key countries such as Brazil appear positive. The falling value of the dollar, if this trend continues, should also provide a constraint on any significant price increases during the first half of the year.