The report analyses the market situation over the year 2016.

In 2016, imports increased moderately in US, EU and Japanese markets. In China, strong demand was reported as a result of falling domestic production with foreign supplies increasing both directly and indirectly to this market. International prices remained stable throughout 2016.

Supply

Mixed production trends for farmed shrimp were observed in Asian producing countries during 2016, with a total estimated production of around 2.5 million tonnes. While disease remained a major concern, adverse weather conditions also had impacts on production particularly during the first half of the year. Fortunately supplies recovered in India, Indonesia, Viet Nam and Thailand during the second half of 2016.

According to a survey by the AQUA CULTURE Asia Pacific magazine, production in Thailand increased to 300 000 tonnes in 2016, whereas there were over 400 000 tonnes harvested in India and Viet Nam each. The Ministry of Agriculture and Rural Development in Viet Nam also reported production of 250 000 tonnes of black tiger production in the Mekong Delta area in 2016. In addition, Viet Nam imported over 300 000 tonnes of frozen shrimp for reprocessing/re-exporting in 2016. Indonesian production remained around 350 000 tonnes. In China, production remained below 2015 levels, estimated between 600 000–800 000 tonnes. Reports from six major farming provinces in southern China indicated that overall vannamei production declined by more than 150 000 tonnes in 2016.

In Latin America, production was estimated to be between 500 000–600 000 tonnes in 2016, with Ecuador and Mexico as the leading suppliers.

In terms of wild-caught shrimp, shrimp landings in Argentina increased (+17 percent) to total 167 300 tonnes in 2016, despite falling catches during the last two months of the year. Higher landings led to a year-on-year 32 percent rise in Argentinean shrimp exports. In the USA, 2016 landings of shrimp were the lowest since 2010.

In terms of prices, vannamei shrimp prices increased marginally during 2016. In the single largest import market, the USA, there was a 5.5 percent rise in import prices compared with 2015. US prices for Indian shrimp and Ecuadorean shrimp increased by 2.7 percent for and 7.8 percent respectively. However, compared with 2015, the average US import price from Indonesia, Thailand and Viet Nam was lower by 1.2–1.7 percent.

Export summary

The top five shrimp exporters to the international market in 2016 were: India (438 500, +14.5 percent), Viet Nam (425 000 tonnes, +18–20 percent), Ecuador (372 600 tonnes, +7.8 percent), Indonesia (220 000 tonnes, +21 percent) and Thailand (209 400, +22 percent). Exports from China also increased by 7 percent to total 205 300 tonnes. India’s top export markets included the USA, Viet Nam, the EU and Japan. For the second leading exporter, Viet Nam, all volumes to its main markets of China, the USA, the EU, the Republic of Korea and Australia demonstrated growth when comparing 2016 over 2015.

For Ecuador, the third largest exporter, Viet Nam remained its number one export market for shrimp. Compared with 2015, supplies to this market increased by nearly 39 percent reaching 165 700 tonnes in 2016. The total export value was USD 2.6 billion (+12 percent).

Thai shrimp exports maintained growth for the third consecutive year. In volume terms, more than 40 percent of Thai shrimp exports consisted of processed shrimp (85 200 tonnes). The total export value for shrimp was US$2.0 billion in 2016.

Another development was the increased exports of value-added shrimp from India, growing from 10 100 tonnes in 2015 to 23 400 tonnes (+130 percent) in 2016, mostly directed to the US market.

Import summary

Most of the large shrimp markets showed positive growth in 2016 compared with 2015. The top markets posting increased imports were the EU (+2 percent at 780 000 tonnes), the USA (+3.2 percent at 606 000 tonnes), China (+4–5 percent at 350 000–360 000 tonnes) and Japan (+4.6 percent at 223 600 tonnes).

In the emerging markets of the Middle East, imports were lower in most of the Gulf Cooperation Council (GCC) markets.

Japan

Stable consumer demand for shrimp throughout 2016 helped to maintain positive import growth in Japan (223 600 tonnes, +4.6 percent) compared with 2015. Leading suppliers were Viet Nam, Thailand, India, Indonesia and China. Nearly 27 percent of imports consisted of value-added products such as tempura shrimp, cooked shrimp, and sushi shrimp with rice.

USA

Except for Ecuador, the USA remained the number one destination for the major shrimp exporters. 2016 showed a record amount of shrimp imports to the USA as well as declining domestic landings. Both figures together correspond to the US total shrimp supply, which was approximately 3 percent higher than in 2015.

In 2016, the US Food and Drug Administration (FDA) rejected 133 shrimp consignments of shrimp destined to this market due to the existence of prohibited antibiotics. Shipments came from India (95), Viet Nam (17) and China (15). This was the third highest number of refusals reported since 2002.

Among the various product forms imported into this market, supplies increased for raw shell-on, raw peeled and cooked shrimp but declined for breaded shrimp. It is interesting to note that imports of large and medium-large shell-on shrimp (U/15 through 21/25) increased by 9 percent in 2016 reaching almost 90 000 tonnes, whereas imports of the medium sizes (31/40 to 51/60) were stagnant at 87 000 tonnes compared with 2015.

EU

Consumer demand for shrimp in the EU remained relatively weak in 2016. However, stable prices of vannamei did help to recover total EU shrimp imports in 2016 by 2 percent to total 783 900 tonnes. Imports from extra-EU countries, which supply 73 percent of imports, increased only by 1.5 percent while intra-EU trade grew by 25 percent. Among the top suppliers, imports increased from Ecuador, Argentina, Greenland and Viet Nam but declined from India. Beginning in late 2016, the EU Veterinary Authority has increased the mandatory quality checks of Indian farmed shrimp from 10 to 50 percent, a move that contributed to additional costs for importers and led to diversification of shipments to other markets.

Asia and other markets                                  

Strong regional and intra regional trade in shrimp persisted in Asia during 2016 in order to supplement local demand and facilitate re-exports. Year-on-year imports increased significantly in Viet Nam, China, the Republic of Korea and Hong Kong SAR.

China’s shrimp imports in 2016 increased by 4 percent to total 107 000 tonnes with Argentina, Canada, Ecuador, Thailand and Greenland as top suppliers. Some of this trade may not be reported; Undercurrent News recently published a report on China’s shrimp trade, which stated that “as much as 270 000 tonnes was smuggled across the Viet Nam-China border in 2016” in order for supply to keep up with falling domestic production and increased demand in Viet Nam.

For the last three years, there have been strong growth trends in legal Vietnamese shrimp imports. In 2016, Viet Nam was possibly the largest shrimp importer in Asia. Combined exports of tropical shrimp from Ecuador, India, Thailand, Iran and Malaysia to Viet Nam totaled 303 000 tonnes in 2016, which is 100 000 tonnes higher than in 2015. Another 20 000–30 000 tonnes were supplied by Venezuela, Argentina, Canada and other Latin American sources.

The report analyses the market situation over the year 2016.