EU raises importing warmwater shrimp

News 15:03 13/06/2016
(seafood.vasep.com.vn) Vietnam shrimp exports to EU in Jan 2016 continued the downward trend of 2015. Exports in the next months of Feb and Apr started to post the year-on-year growth. Vietnam shrimp sales to EU in Jan-Apr 2016 reached US$164.4 million, up 12.1% year on year. In the early 2016, orders from European importers rose thanks to lower inventories and stable demand.

Among the single markets in the EU bloc, Belgium has outstripped the Netherlands to be put in top 3 largest importers of Vietnam shrimp (the UK, Germany, Belgium). Export value to the UK and Belgium in the first 4 months of this year showed the respective increase of 38.9% and 65.1% while exports to Germany downed 3.9%.

According to ITC, in Jan-Feb 2016, shrimp imports into EU reached US$953.5 million, up 1% year on year, out of top 4 largest shrimp suppliers to EU (India, Ecuador, the Netherlands and Vietnam), imports from India, the Netherlands and Vietnam rose but imports from Ecuador fell.

Among EU bloc, the UK and France was two leading markets. In Jan-Feb 2016, these two markets raises importing shrimp with the respective growh of 4.1% and 2.8%. Belgium, ranking the 7th among leading markets in EU bloc, rose 7.8% in shrimp imports.

The UK: Sharp rise in demand for warmwater shrimp

While EU reduced importing shrimp from Vietnam in 2015, Vietnam shrimp exports to the UK always reported the growth in 2015. In 2014, the UK was the third largest importer of Vietnam shrimp in the EU bloc. In the early 2015, the UK rose to the second rank. Since Aug 2015, the UK has overtaken Germany to become the largest importer of Vietnam shrimp in the EU. In Jan-Apr 2016, Vietnam shrimp exports to the UK reached US$37.3 million, accounting for 4.3% of the Vietnam’s total shrimp exports.

The rise in Vietnam shrimp exports to the UK was attributable to that the market raised importing warmwater shrimp while the supply of coldwater shrimp fell and its price rose.

In the UK retail market, in 52 weeks ended on Apr 23rd 2016, sales of coldwater shrimp downed 12.3% in volume and 2.1% in value from the same period of previous year. The figure fell to 14,226 MT (worth by US$258.3 million) from 16,260 MT (valued at US$265.3 million).

In the period, the price of coldwater shrimp rose to US$18.2/kg, up 11.5% from the same period of previous year due to shortage of shrimp supply.

In the period, the sales of warmwater shrimp rose and surpassed the sales of coldwater shrimp for the first time in the last 3 years. Sales of warmwater shrimp reached 16,445 MT, up 15.4% from 14,252 MT of the same period of previous year. The value reached US$352.7 million, up 9.6% from US$322.9 million.

The sales of warmwater shrimp rose partly thanks to its reasonable price. Its price fell 4.7% for chilled warmwater shrimp (US$24.1/kg) and downed 5.9% for frozen warmwater shrimp (US$17.2/kg).

The global supply of coldwater shrimp expected to decline in the coming time.

In 2015, EU raised importing warmwater shrimp. It is expected that this trend will continue in 2016.

Despite advantages from FTA between Vietnam and the EU (EVFTA), Vietnam shrimp exports to EU in QII/2016 are expected to post a slight rise because uncertainties still exist in the market like migrant crisis and the problems of the Greek economy. Therefore, European importers will not buy for restoring in inventories and they will buy what they really need.

By Kim Thu

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