Shrimp prices are expected to increase in the coming time thanks to strong demand (10-07-2018)
World shrimp supply is forecasted to be declined in the third and fourth quarter of this year due to Asian main shrimp producers such as India, Thailand and Bangladesh had passed harvest time and shortened shrimp seed release for new crop.
Vietnamese shrimp export in the first 5 months of this year reached approximately US $ 1.33 billion, up 8.6 per cent year on year. Of which, EU block was the biggest shrimp importer of Viet Nam with US $ 256 million, up 11.9 per cent compare to 2017. Shrimp export to countries in EU block got positive growth rate in the first 5 months, like Holland up 83.7 per cent, Germany up 53.6 per cent and Belgium up 39 per cent. Shrimp exports to the EU remained stable thanks to the reduction of imports from India. Besides, Vietnamese shrimp exporters still enjoy tax incentives when exporting to the EU market.
Japan was the second importer with US $ 230 million, but down 10.8 per cent year on year. This was caused by high and severe competition made by Indian shrimp on this market when this country tended to boost shrimp export to Japan. China and Hong Kong stayed at third position with US $ 202.9 million, down 7.4 per cent year on year. The US was pushed to fourth place with US $ 201.3 million, down 5.2 per cent. The reason for the depletion of shrimp import from the US was low demand due to high inventory and increased competition from the main competitor of Vietnamese shrimp (Indian shrimp). S. Korea stood at fifth place with US $ 151.1 million. It was obvious that among 5 biggest shrimp importers of Viet Nam, except EU and S. Korea got positive growth rate in the first 5 months, all 3 other importers got negative growth rate, of which, Japan was the import market with the highest decrease. These 5 biggest shrimp importers accounted for 78.5 per cent of total shrimp export value.
However, a good sign can be seen in the picture of country’s shrimp export in the first 5 months is the good growth rate recorded in almost market (except for Switzerland decreased by 14.6 per cent). Some markets got high rate are Canada, Australia, the Philippines, and other markets.
In May, white leg shrimp price continued to decrease in the Mekong Delta. Starting from April, the price of white leg shrimp of 80-100 units/kg in some provinces in the Mekong Delta has shown signs of decrease compared to previous months. This negative trend was prolonged to the end of May. The price of white leg shrimp size 40 units/kg was at VND 130,000, size 60 units/kg was at VND 75,000 and size 100 units/kg was only at VND 70,000. Moreover, shrimp price in the world market reduced also. The main reason is the increase in world supply while inventory remains in the import market as well as some political instability in the Middle East and China boosting import controls.
It is forecast that domestic and world shrimp prices will improve in the near future thanks to world shrimp supply should be limited when harvest time of major shrimp producing countries like India, Bangladesh, Thailand has gone and farmers in these countries did not enthusiastically prepare for the next crop. Thus, supply may decrease in the third and fourth quarter. In addition, many shrimp exporters of Vietnam have begun to sign new contracts for the holidays of the end of 2018 so shrimp prices are expected to increase again in August and September this year.
Huong Tra