U.S shrimp market in 2013: Limited supply and higher price due to restriction of shrimp imports

News 08:25 03/06/2013 502

(vasep.com.vn) In March 2013, shrimp imports into the U.S. continued their trend dropping 5.3 percent year-on-year, leading to an 8 percent reduction in shrimp imports into the market, observed in the first 3 months of 2013 against the same period of 2012.

The U.S.’s shrimp imports from most of suppliers, witnessed a tremendous dive in which imports from Thailand were down 27 percent in value and 21 percent in volume, although Thailand still took the lead in supplying shrimp to the U.S. with the proportion of 21.8 percent in value and 21.4 percent in volume among total shrimp imports into the U.S. Shrimp imports from Vietnam also slumped of 20 percent in value and 7 percent in volume.

Among top 8 largest shrimp suppliers for the U.S., India was the only supplier with a positive growth with an increase of 51 percent in value and 69 percent in volume.

Decrease in shrimp imports into the U.S. was mainly attributable to that domestic shrimp producers endeavored to prevent importers from purchasing shrimp abroad. While domestic shrimp production making up less 5 percent of the country’s total shrimp supply also tumbled remarkably.

According to the National Marine Fisheries Service, in the first two months of this year, the U.S.’s domestic shrimp output touched 3,608.5 MT, down 243 percent from that of the same period of 2012. Shrimp production in Mar 2013 continued to sink of 47 percent.

Through the early year to date, limited shrimp supply pushed shrimp price up continuously in the U.S. market. In the market, the price of HLSO whiteleg shrimp saw the growth of 17 percent from US$4.1 per pound of Jan 2013 to US$4.7 per pound registered in the early May 2013. At the same time, the price of HLSO black tiger shrimp was up to 11 percent from US$6.4 per pound to US$7.1 USD per pound.

The U.S.’s imposition of duty barriers and biased and unpersuasive information to restrict importing shrimp from abroad, will increasingly slash shrimp supply for the market. As a result, almost certainly, U.S consumers will not afford high price of shrimp determining a further collapse of the market.

Shrimp output of Asian producers fell tremendously due to early mortality syndrome (EMS) outbreak. Thus, shrimp exports from China, Vietnam, and Thailand to markets including the U.S. declined sharply. The shrimp market became volatile because of the excessive concerns on EMS’s potential impacts and on the pathogen causing it. Amid these concerns, some shrimp consumer markets decided to ban shrimp imports from EMS-affected countries to protect their shrimp industry. U.S. shrimp association the Southern Shrimp Alliance (SSA) raised EMS concerns and called for the government to investigate EMS’s potential impacts to human health and restrict the importation of shrimp to protect their small shrimp sector.

In the early May of 2013, the Global Aquaculture Alliance identified that a strain of Vibrio parahaemolyticus is the pathogen causing EMS or AHNS (acute hepatopancreatic necrosis syndrome). It is the result after months of research by a team at the University of Arizona led by Donald Lightner, expert in shrimp diseases.

Donald Lightner’s report on EMS’s cause has eased concerns of consumers. The researchers affirmed that frozen or defrosted shrimp likely pose a low risk for contamination of wild shrimp or for the environment because the pathogen causing EMS can’t survive in frozen environment. Thus, frozen shrimp can’t spread the disease. Moreover, researchers found that frozen shrimp products can’t transmit the disease to live shrimp. Therefore, concerns on EMS and some countries’ banning shrimp imports from EMS-affected countries are irrational.

Shrimp imports into the U.S., Jan-Mar 2012/2013 (Source: USDA)
Suppliers	Jan-Mar 2012		Jan-Mar 2013		Variation in value (%)	Variation in volume (%)
Suppliers	Value (US$thousand)	Volume (MT)	Value (US$thousand)	Volume (MT)	2012 vs. 2013	2012 vs. 2013
Total shrimp imports into U.S	1,079,982	121,665	971,006	111,519	-10	-8
Thailand	288,788	30,482	211,854	23,931	-27	-21
Indonesia	183,062	19,370	162,520	17,454	-11	-10
India	101,806	10,309	154,202	17,442	51	69
Ecuador	134,471	19,208	131,985	17,648	-2	-8
Vietnam	103,704	8,566	82,501	7,948	-20	-7
Mexico	81,830	8,167	73,340	5,751	-10	-30
China	49,316	7,334	40,442	6,448	-18	-12
Malaysia	49,025	6,390	38,834	5,568	-21	-13
Peru	15,239	2,120	19,634	2,310	29	9
Honduras	4,754	724	2,804	458	-41	-37

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