Vietnam shrimp exports hard hit by South Korea’s ethoxyquin test

News 09:38 16/09/2014 502
(vasep.com.vn) South Korea’s Animal, Plant and Fisheries Quarantine and Inspection Agency (QIA) decided to test the ethoxyquin contents in frozen shrimp shipments from Vietnam in one year from 1 January 2013 to 31 December 2013.The level permitted by QIA is 0.01mg/kg.

The decision creates more burdens on the local shrimp exporters already facing a hardship situation.

In 2012, South Korea and Australia were two good destinations for Vietnam shrimp. Exports to these two markets increased while shipment to other major markets witnessed a regression.

At the same time, in 2012, South Korea was the fifth largest consumer of Vietnam shrimp with an import value of US$171.4 million, 8.8 percent up from 2011 while exports to other major markets such as the U.S., EU declined respectively by 18.6 percent, 24.5 percent and with a slight increment in the Japanese market equal to 1.7 percent.

Shrimp exports to South Korea declined sharply in 2013.The General Department of Customs showed that in Feb 2013, shrimp sales to South Korea downed 50.2 percent over the same month of previous year.

During the same period, shrimp shipment to 8 others, totally 10, largest importers underwent a deep decrease over Feb 2012 in which exports to Japan and EU went down of 40 and 33.5 percent respectively. Besides, lower consumption in global markets due to economic turmoil caused a further decrease of Vietnam shrimp exports.

According to the U.S. Census, in Jan 2013, shrimp imports into the U.S. reached 44,862 MT, down 11.6% compared to Jan 2012. Shrimp purchase from suppliers shrank such as shrimp imports from Thailand down of 24 percent, Ecuador 16.7 percent, Vietnam 19.5 percent, China 28.7 percent. Particularly, imports from India in the month rose sharply of 70 percent.

According to National Marine Fisheries Service (NMFS), in the first month of 2013, shrimp imports into Japan reached 13,649 MT, down of 13.1 percent compared to the same period of 2012 (15,708 MT) in which imports from China dropped of 40 percent, Thailand and Vietnam down of 18.6 percent and 16 percent respectively.

In Jan and Feb 2013, shrimp exports reached over US$242.2 million, down of 6 percent in comparison with the same period of 2012. The U.S. surpassed Japan in holding the lead of Vietnam shrimps imports.

However, Vietnam shrimp exports are facing difficulties due to the risk of countervailing duty in the market. EU’s demand for shrimp declined tremendously due to economic distress, downgrading the EU market to the fourth position, formerly the third largest importer of Vietnam shrimp, after China. In the first two months of 2013, shrimp exports to EU continued to sink of 4.2 percent.

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