Consumers in
Current imports for Agama, a $200 million revenue importer, processor and distributor of shrimp, are currently practically nothing, Igor Salagaev, marketing manager at the firm, told Undercurrent News.
“Demand is very slow. Normally we import around 3,000 tons per month raw material, but at the moment, nothing,” he said.
Looking at yearly import statistics for shrimp, of which cooked, head-on, shell-on is the main product for the Russian market, it is clear that demand is dwindling. The volume of shrimp imported in 2012 was 30,245 metric tons – 21% lower than just two years previously.
So far for 2013 Agama has imported 10,843t, and Salagaev forecasts the year total will reach 26,500t – another 12% drop year-on-year.
“The big picture is that the coldwater shrimp market is going down,” he said. “The market will lose 10%, 15% of imports.”
“Just look at the monthly figures: the standard monthly imports is around 2,500 – 3,000 mt. In April- May it was about 1,000-1,400t. We have not been importing for the past months as well.”
There are two reasons for this drop in imports, and the first is the price for the importer.
Several of the largest Russian firms have traditionally focused on importing small sizes shrimp, 180+ pieces per kg, or 200+, said Salagaev, whose own firm Agama has been paying more attention to larger shrimp.
The prices for these shrimp have been increasing for several years now, and has stabilized at a level much higher than it used to be.
“People only just started to care about quality, last year maybe. Now they are beginning to buy good quality shrimp” “Russian importers are not interested. They were buying cheap, and selling on as a cheap product,” he said. “Now if they buy it they have to sell it at a worse margin.”
He also pointed out that the ruble has lost 10% against the euro and the dollar, which makes it even less worthwhile purchasing expensive products to sell cheaply.
The second reason for the drop in imports is that Russian consumers are buying less prawns at better levels of quality.
The MSC certification of Greenland’s shrimp fishery means little to
“People only just started to care about quality, last year maybe. Now they are beginning to buy good quality shrimp.”
Once again he has the statistics to back this: last year Agama’s sales of own-brand, larger sized shrimp was around 195t per month. This year sales have been 260t per month.
Around three months ago the firm, which is in the process of setting up a chain of stores throughout
“Another item is the 50/70, which is popular in
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