In 2011, buyers found it a constant struggle sourcing farmed shrimp at a price that’s conducive to the cost-effectiveness of their businesses. Unfortunately for them, it appears as though this problem will not be going away in the near future, and prices will remain high for at least the next year, particularly for large sizes of U25s and up.
In the last few years, global shrimp production has averaged 4.5 million metric tons, including 2.5 million metric tons of farmed product. Market prices have increased by 30 to 50 percent in this period.
In week 49, shell-on black tigers (Penaeus monodon) held at USD 6.74 (EUR 5.04) per pound, a price point that the product had held throughout 2011. In fact, this price has prevailed since the second half of 2010. By way of comparison, the same shrimp were quoted at around USD 5.25 (EUR 3.92) per pound in week 49 in 2009 and at around USD 4.75 (EUR 3.55) in the corresponding week of 2008.
For shell-on white shrimp (P. vannamei) the market price in week 49 in 2011, was USD 3.79 (EUR 2.84) per pound, which was also the price it held at the same stage of 2010. In the corresponding week of both 2009 and 2008, the price was around USD 2.70 (EUR 2.02) per pound.
Shrimp in its various forms is one of the world’s favorite seafood items, but recent supplies have been unable to match the demand — a situation that has been created by key producing nations falling foul of one crisis or another.
Firstly, the disease outbreak experienced by Indonesia’s leading shrimp company, PT Central Proteinaprima (CP Prima), in 2009 continued to affect the country’s output this year. Secondly, Thailand, the world’s No. 1 shrimp exporter, which in 2010 increased its output by 9 percent, has seen its shrimp farming industry ravaged this year by flooding and temperature problems. Even Vietnam’s industry, which had switched a lot of its black tiger farming to vannamei with quick success, is now being unhinged by a potentially catastrophic disease outbreak.
It’s also worth noting that China, which produced 1.3 million metric tons of shrimp last year, of which 188,000 metric tons was exported, is expected to reduce its shrimp exports in the future because of a burgeoning domestic appetite for the product — a demand that is being matched by its fast-growing consumer wealth.
If there has been a positive in the industry this year, then that would be the fresh dynamism of India’s shrimp producers. Many have been switching over from black tiger farming to vannamei and are achieving strong export volumes as a result.
The Kolkata region remains India’s main producing region for black tigers, while the southern aquaculture region has been shifting more to vannamei.
The country expects its 2011 shrimp harvest to increase between 25 and 30 percent year-on-year to about 300,000 metric tons, 60 percent of which will be vannamei. To accommodate this larger supply, processing plants have been running at 150 to 200 percent capacity for much of 2011.
In the long-term, the shrimp industry as a whole will get back onto its required trajectory and there will be greater output, but buyers around the globe should expect the high prices to remain for anywhere between 12 and 24 months. Supply chains will undoubtedly be put under pressure throughout 2012.
