Fortunately for U.S. buyers, Thailand’s farmed shrimp industry is recovering from the early mortality syndrome (EMS) disease that sent prices soaring last year and into this year.
As a result of better supply from Thailand, along with Central America and South America, prices are softening. But farmed shrimp is still not the value it used to be for foodservice and retail buyers.
“While prices have dropped over the last two months, they are not at the price they were two to three years ago because of the high prices last year and the beginning of this year,” a major Northeast U.S. shrimp importer told SeafoodSource. “There was a price direction down of only about USD 0.20 (EUR 0.15) to USD 0.30 (EUR 0.22) a pound.”
As of late June, HLSO black tigers from Asia were selling for an average of USD 6.60 (EUR 4.85) to USD 6.70 (EUR 4.93) per pound on average; farmed shrimp from Central and South America shrimp dropped to USD 5.60 (EUR 4.12) to US 5.70 (EUR 4.19) a pound on average, when they had risen to USD 6.25 (EUR 4.60) a pound earlier this year.
U.S. shrimp imports through April are up 13.6 percent compared to the first four months of 2013, to a total of 364.7 million pounds, according to NOAA Fisheries. Imports from Thailand are, however, down 40 percent to 39.8 million pounds. Supply increases from Ecuador (19.5 percent), India (16 percent) and Indonesia (38.5 percent) have helped make up the balance.
Buyers have realized the biggest price drops on Central and South America 31/35s (USD 4.75/EUR 3.49 to USD 4.85/EUR 3.57 a pound on average in late June) and 36/40s (USD 4.70/EUR 3.46 to USD 4.80/EUR 3.53 per pound); 51/56s from Central and South America have dropped around USD 0.20 a pound in recent months to USD 4.50 (EUR 3.31) a pound up to USD 4.65 (EUR 3.42), on average.
“Ecuador and South America are going into their dry season, where the temperature drops around 20 degrees. Honduras is producing the smaller sizes,” the importer said.
While Thailand has come under fire by the U.S. State Department for ongoing human-trafficking issues, buyers don’t expect those concerns to hamper shrimp supply or drive up pricing. “I don’t think it’s going to affect the world price too much,” the Northeast U.S. importer said.
Because of Thailand’s EMS problems last year, large buyers have already been sourcing more from South America and Central America.
“China, primarily, has had to go to South America to get the shrimp they want. That is what has driven the price up to these levels,” the importer said.
And importers in Indonesia, Vietnam and Thailand recently dropped prices on some sizes to spur inventory movement, according to a Western U.S. distributor.
Prices on HLSO 16/20s from Asia were stronger in late June at USD 8.50 (EUR 6.25) to USD 8.60 (EUR 6.33) per pound, on average, while 13/15s jumped to USD 10.50 (EUR 7.72) to USD 10.70 (EUR 7.87) per pound.
Meanwhile, wild Mexican and U.S. Gulf shrimp prices have also remained strong. “Mexican shrimp is at the top of the shrimp-pricing chain in 2014 with average pricing over USD 8 (EUR 5.88) a pound,” the Western U.S. distributor said.
The Gulf of Mexico shrimp season started slowly, with primarily smaller sizes. As a result, ex-warehouse prices are averaging USD 6.90 (EUR 5.08) to USD 7 (EUR 5.15) a pound for 41/50s and USD 5.75 (EUR 4.23) to USD 5.85 (EUR 4.30) a pound for 61/70s.
