The US shrimp market may not have fully recovered but there are good signs. According to the latest update from the National Oceanic and Atmospheric Administration (NOAA), in October 2023, the US imported 76,369 tons of shrimp, 9% more than the volume imported in October 2022.
This marks the fourth consecutive month of year-over-year increases after 13 consecutive months of year-over-year declines. Ten of the 21 largest shrimp suppliers to the US market exported more shrimp to the US in October.
That’s a good sign. The bad news: Americans spent $609.7 million on imported shrimp in October, 4% less than the $636.2 million spent in October 2022. This decline was due to average prices only reaching $7.98/kg in October 2023, 12% lower than the average price of $9.08/kg recorded the previous year.
The average price of imported shrimp in the US has fallen sharply since at least April 2022, when it was at $9.75/kg with only some short-term improvements (see chart below). The October average price was the lowest since January 2013.
According to NOAA data, the US imported 651,907 tons of shrimp worth 5.4 billion USD in the first 10 months of the year, down 9% in volume and down 20% in value compared to 715,638 tons worth 6.7 billion USD imported in The first 10 months of 2022.
Tariff-related investigations continue
In the last four months, shrimp imports into the US have increased, but the general downward trend is still maintained when the US Department of Commerce and the International Trade Commission (ITC) investigated the 4 largest shrimp suppliers to the US (India), Ecuador, Indonesia and Vietnam) for alleged dumping and/or illegal subsidies.
The American Shrimp Processors Association, in its petition to the two agencies, said it had documented “dozens of government subsidy programs” that benefit shrimp farmers and processors in source countries, including subsidized loans, tax incentives, subsidies, export credits, and the provision of land, water, and other inputs. The alleged dumping rates are 9.55 – 25.82% for Ecuador and 26.13 – 33.95% for Indonesia.
As reported by Undercurrent News, the ITC voted on December 8 to allow the investigation to continue as the agency determined that it had enough evidence that domestic manufacturers were facing difficulties due to low import prices.
India and Ecuador account for 38% and 24% of the US shrimp market share, respectively
NOAA data shows that India continues to be the largest shrimp supplier to the US, exporting 29,860 tons worth $225.8 million in October 2023, up 9% in volume and down 5% in value over the same period. The average price was $7.56/kg, down 13% from the $8.67/kg average reported a year earlier.
In the first 10 months of the year, India exported to the US 245,165 tons of shrimp worth 1.9 billion USD, volume down 5% and value 19% lower compared to the first 10 months of 2022.
Ecuador continues to sell more shrimp to the US, exporting 18,335 tons worth $124.1 million in October 2023, up 18% in volume and up 5% in value over the same period last year. With an average price of 6.77 USD/kg, down 11% compared to 7.58 USD/kg in October 2022. In the first 10 months of the year, Ecuador exported to the US 172,741 tons of shrimp worth 1.2 billion USD, up 2% in volume and down 10% in value over the same period in 2022.
Ecuador won 24% of the US shrimp market in October, becoming the second largest supplier to the US. But Ecuador, which saw a surge in supply, especially in early 2023, is expected to see growth slow, Rabobank reported. Factors contributing to this expected decline include increased domestic production in China, weak demand and higher inventory levels.
Rabobank estimates that forecasts indicate that Ecuadorian supply growth could hover around 5% in 2024, down significantly from the 12% increase recorded in the previous year.
Indonesia holds the 3rd market share
Indonesia, the third largest source of US shrimp, exported 13,009 tons worth $99.5 million in October 2023, up less than 1% in volume and down 15% in value compared to October 2022. Average price was $7.65/kg, down 15% from the $9.00/kg seen in October 2022.
In the first 10 months of the year, Indonesia exported to the US 120,077 tons of shrimp worth 971.9 million USD, the volume decreased by 15% and the value was 28% lower compared to the first 10 months of 2022.
However, it will not be surprising that the amount of shrimp from Indonesia will increase in the near future. According to a report by Undercurrent, the Indonesian Ministry of Maritime Affairs and Fisheries (KKP) plans to expand many new specialized shrimp farming areas in many different areas by 2024 to increase shrimp production. In a press release on December 7, KKP Minister Sakti Wahyu Trenggono emphasized that it will deploy the most intensive farming area expansion in Waingapu, East Sumba Regency, East Nusa Tenggara, Aceh, Lampung, Jembrana or South Sulawesi, with a total area of 1,800 hectares.
Other countries have increased the volume of shrimp exports to the US
Vietnam, the fourth largest shrimp supplier to the US in October, exported 6,755 tons to the US worth 71.3 million USD. Volume increased by 30% and value decreased slightly compared to October 2022. Average price was $10.57/kg, down 10% from the average of $11.70/kg calculated in October 2022
Thailand, ranked fifth in total shrimp exports to the US in October, exported 4,111 tons to the US worth 44.6 million USD. Volumes increased by 16% and values were slightly lower compared to October 2022. Average price was 10.84 USD/kg, down 14% from the average of 12.59 USD/kg calculated in the same period last year .
China also exported 229 tons of shrimp worth $1.4 million to the US in October 2023, a 63% increase in volume and a 50% increase in value. The average price was $6.01/kg, making it one of the cheapest sources of shrimp in the US and 8% lower than $6.53/kg a year earlier.
However, China is still slower than the 2022 pace, exporting 3,040 tons of shrimp worth $17.8 million to the US in the first 10 months of 2023, 34% less volume and 35% less value compared to the same period last year. .
To date, Chinese shrimp is the highest taxed item among all types of shrimp imported into the US. About $4.4 million in additional taxes had to be paid to bring goods into the US in the first 10 months of the year due to the trade war initiated by former President Donald Trump’s administration in 2018.
Mexico was the seventh largest source of US shrimp in October 2023, exporting 1,510 tons worth $16.3 million, but volume was 38% lower and value 37% lower than in October 2022. In the first 10 months In 2023, Mexico is still much slower than its previous pace. It sent to the US 11,911 tons worth $152.9 million, 27% less volume and 30% less value compared to the first 10 months of 2022.
Source: https://tongcucthuysan.gov.vn/