Japan raises 20 times of Ethoxyquin limits on Vietnam shrimp

On November 29th 2013, Japan Ministry of Health, Labour and Welfare (MHLW) will approve the MRL for ETQ on Vietnam shrimp and then reports it to the World Trade Organization (WTO). The final decision on the MRL of ETQ is expected to officially announce Vietnam shrimp by the end of January 2014 by MHLW.

In 2012, ETQ inspection by Japan on Vietnam shrimp took a heavy toll on Vietnam shrimp exports. Vietnam’s shrimp consignments must be tested ETQ for 5 times (from raw shrimp to exported products), leading to increasing costs for exporters. Shrimp exports to the market in 2012 were up only 1.7 percent over 2011.

In the first 6 months of 2012, Vietnam shrimp exports to Japan posted an year-on-year growth of 28 percent. However, shrimp shipment to the market started to fall sharply after  Japan inspected ETQ residue on 30 percent of shrimp consignments imported from Vietnam with MRL of 0.01 ppm in May 18th 2012. In the late August 2012, Japan decided to test ETQ residue on all shrimp consignments from Vietnam. Thus, shrimp exports to the market remained two-digit reduction in the last 6 months of 2012.

During the past time, Vietnam’s competent authorities and enterprises have taken great efforts to minimize ETQ residue in exported shrimp.

Vietnam’s authorities sent Japan’s relevant agencies official letters to recommend Japan to raise MRL for ETQ in shrimp to 1ppm, similar to that for finfish. Recently, National Agro Forestry Fisheries Quality Assurance Department (NAFIQAD) recommended MHLW to re-establish MRL for ETQ from 0.01ppm currently to 1ppm. Besides, Vietnam shrimp exporters strengthened to control ETQ residue from shrimp farming to processing.

According to safety alerts of food imported into Japan, until November 25th 2013, the number of shrimp consignments exported to the market that contain Ethoxyquin residue has reduced to 4 ones from 17 of last year.

In January 2013, Vietnam shrimp exports to Japan started to recover because ETQ problem was improved. Through October 2013, shrimp exports to the market enjoyed a year-on-year growth of 13 percent to reach US$574.5 million. Moreover, Vietnam shrimp exports to Japan were further boosted thanks to Thailand’s shortfall of raw shrimp caused by EMS and rise in global shrimp price.

The volume of frozen raw shrimp accounted for 69 percent of Japan’s total shrimp imports. Through September 2013, Vietnam surpassed Thailand to claim the first position in supplying frozen shrimp to Japan with 24,806 MT, up 8.1 percent. While Thailand exported 15,964 MT of frozen shrimp to the market, down 38 percent because of vast decline in shrimp output due to EMS.

Until September 2013, export value of Vietnam frozen shrimp to Japan reported the growth of 37 percent year-on-year owing to increase in average import price of frozen shrimp into the market.