US: Rise in shrimp imports from Vietnam

News 13:35 15/08/2016 502
(seafood.vasep.com.vn) Vietnam shrimp exports to the U.S. in May 2016 reached US$49.5 million; up 2.5% compared to May 2015. The figure to the market in the first 5 months of this year hit US$249.3 million; up 17.4% over the same period last year.

Compared with the same month of 2015, exports in Feb 2016 reported the highest growth of 52.3%. Exports in March, April, May 2016 reported smaller growth in which exports in Apr reached the lowest growth of 0.5%.

In Jan-May 2016, average import price into the U.S. reached US$9/kg compared to US$9.9/kg in Jan-May 2015. Specifically, the price of medium-sized peeled and deveined shrimp (the size found on many menus) in the U.S. market plunged to US$9.4/kg; much lower than US$15.5/kg in 2013 due to low harvests caused by disease outbreak. This price level was ideal for US restaurants to buy shrimp and stock up for year-end holiday menus and promotions.

Better outlook for the U.S. economy, USD’s strength stimulated local consumers’ spending. Besides, lower inventory and the larger number of consumers went to foodservices and restaurants in the summer that boosted the US’s demand for shrimp.

In the first months of 2015, the U.S. tend to import more black tiger shrimp. In Jan-May 2015, the proportion of black tiger shrimp exported to the U.S. accounted for 24% and whiteleg shrimp occupied 69%. As of May 2016, the proportion of black tiger increased by 3% to 27% and white shrimp increased by 1 % to 70%. During the period, out of shrimp products exported to the U.S., processed black tiger (HS 16) reported the largest increase of 164% over the first 5 months of 2015. In the US market, the price of some black tiger products from Vietnam as of July 1st 2016 is more competitive than those of rivals in the region (Indonesia, India, Malaysia). Specifically, Vietnam’s black tiger shrimp size 16/20 was priced at US$6.25/pound while black tiger with the same type from India and Malaysia have the price of US$6.60/pound; Vietnam’s black tiger shrimp count U-15 was quoted at US$8.30 while that of Indonesia was US$8.50/pound. The U.S. was the 2nd largest consumer market of Vietnam black tiger shrimp with the proportion of nearly 20%. Vietnam’s black tiger shrimp exports, especially HOSO black tiger to the U.S. are facilitated thanks to advantages of the supply on comparison with rivals.

As of May 2016, shrimp imports into the U.S. reached 218,480 MT, worth nearly US$2 billion; down 1% in volume and 10% in value compared to the same period of 2015. Indonesia is the largest supplier to the U.S., accounting for 22.3% of US’s total shrimp imports. It was followed by India and Thailand accounting for 20.9% and 13%, respectively. Vietnam ranked the 4th position, accounting for 12.4% of the market share.

 

Average price of shrimp imported into US (US$/kg)

Supply

Jan-May 2015

Jan-May 2016

Variations(%)

World

10.1

9.4

-7.3

Indonesia

10.8

9.5

-11.2

India

10.6

9.8

-7.5

Ecuador

7.9

7.8

-1.8

Thailand

11.6

9.8

-15.9

Vietnam

12.2

11.2

-8.2

China

7.2

6.7

-7.3

Among top 5 largest suppliers of shrimp to the U.S., only Vietnam increased both the volume and value of shrimp exported to the U.S. with 13% and 2% in turn. Thailand raised 8% in export volume to U.S. while the volume of shrimp exported to the U.S. from India remain unchanged compared to the same period in 2015. Notably, shrimp exports from Ecuador to the U.S. fell the most in the top 5 suppliers for the U.S. The U.S. tend to reduce imports from Ecuador and raise imports from Asian suppliers such as Vietnam, India, Thailand and China because these suppliers can meet US’s demand for shrimp skewers with reasonable price. While Ecuador surged shrimp exports to China because of high demand and low import duty.

Thailand planned to raise shrimp exports to the U.S. due to decline in its market share in EU market caused by GSP lost from EU.

 

Top 5 largest shrimp suppliers to US, Jan-May 2016 (Value: US$ thousand, Volume: MT)

Suppliers

2015

Jan-May 2015

Jan-May 2016

Variations (%)

Value

Volume

Value

Volume

Value

Volume

Average import price (US$/kg)

Value

Volume

World

5,460,271

587,507

2,200,953

220,418

1,982,174

218,480

9

-10

-1

Indonesia

1,100,983

114,494

508,528

49,212

442,253

47,529

9

-13

-3

India

1,284,690

135,650

444,359

43,600

415,556

43,817

9

-6

--

Thailand

755,512

73,883

285,600

25,778

261,526

27,810

9

-8

8

Vietnam

663,730

60,893

241,120

20,230

246,437

22,925

11

2

13

Ecuador

635,370

85,744

282,211

36,558

228,982

30,253

8

-19

-17

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