A drop in demand for shrimp in Japan, especially vannamei, has contributed to a drop in prices going into the summer, with expectations of an upturn in late summer and into the fall.
Japanese importers were offering shrimp at the end of May in the following price ranges (per block).
Vannamei, headless, in 1.8 kg blocks sold for JPY 2,900 (USD 23.58, EUR 21.59) at 16-20 count per pound, JPY 2,540 (USD 20.65, EUR 18.91) for 21-25 count, JPY 2,314 (USD 18.81, EUR 17.23) for 26-30 count, and JPY 2,065 (USD 16.78, EUR 15.37) for 26-30 count.
Flower shrimp (Penaeus semisulcatus), headless, in 2 kg blocks sold for JPY 5,800 – 6,000 (USD 47.14 - 48.77, EUR 43.19 – 44.69) at 8-12 count per pound, JPY 5,000-5,200 (USD 40.64 – 42.26, EUR 37.24 – 38.73) at 11/15 count, JPY 4,700-4,900 (USD 38.29 – 39.82, EUR 35.00 – 36.49) at 16-20 count, JPY 4,200-4,400 (USD 34.13 – 35.76, EUR 31.28 – 32.77) at 21-25 count, and JPY 3,700-3,900 (USD 30.06 – 31.69, EUR 27.56 – 29.05) at 26-30 count.
Meanwhile, 16-20 count black tiger (frozen headless, shell-on) sold at the Tsukiji wholesale market at the end of May in the range of JPY 4,104 - 4,320 (USD 33.04 – 34.78, EUR 30.28 - 31.87) per 1.8 kilogram block.
Prices have been declining, and vannamei prices in particular have fallen over the last couple of months on light demand, and buyers are pressing for further reductions. Demand is expected to increase in August, as August to October is a traditional peak period for shrimp prices.
In 2014, Vietnam, Indonesia and India all shifted from black tiger to vannamei shrimp, so that overall Asian farmed vannamei production increased from 2.12 million metric tons (MT) in 2013 to 2.37 million MT. Black tiger production, meanwhile, fell from 744,000 MT to 635,000 MT. India increased vannamei production the most, to take advantage of strong demand following early mortality syndrome (EMS) outbreaks in Southeast Asia. Now, as production in that region is recovering, demand has again weakened.
Adding to downward pressure in Japan is the weak yen. The Japanese currency last week fell to 124 to the dollar, its lowest level since 2007.
In the first three months of calendar 2015, Japan’s frozen shrimp imports totaled a little over 24,000 MT, and were valued at nearly JPY 33 billion (USD 266.7 million, EUR 242.8 million), according to the Japanese Ministry of Finance. Japan’s top sources during the period were Vietnam (5,368 MT), Indonesia (5,692 MT), India (3,389 MT), Argentina (2,558 MT), China (1,747 MT) and Thailand (1,950 MT). Wild cold-water shrimp from Argentina have gained market share due to favorable pricing. The high figures for Vietnam reflect considerable imports of Indian shrimp for processing and re-export to Japan.
Japan’s Fisheries Agency has reported cold storage holdings of shrimp on 31 March of 60 MT, down 9 percent from a month earlier, and 8 percent from a year earlier.
Regarding domestic supply, Tokyo-based Nippon Suisan has announced its intention to domestically cultivate up to 200 metric tons per year of vannamei shrimp in Kumamoto Prefecture by the year 2018. As the production cost will be about JPY 100 more than the retail sales price of imported frozen product, they will aim at the higher priced fresh sushi market.
