Vietnam shrimp exports to the UK keep growing

News 17:23 06/10/2015
(vasep.com.vn) The UK has been a potential market as shrimp sales to the market remained high growth rates while other markets declined. Even though shrimp imports into the UK slowed down, shrimp sales from Vietnam to the market saw positive growth. The increase was owing to the UK’s rising demand for small warm-water shrimp.

 

In May 2015, the UK surpassed Germany to become Vietnam's largest shrimp importing market in the EU. In August 2015, the UK accounted for 4.7% of the Vietnam’s total shrimp exports while the proportion to Germany was 3.1%. Through August, the proportion to the UK made up 4% while Germany took 3.9%.

The UK was the only market in the EU to report the positive growth of 24.4% in Jan-Aug 2015.  

Statistics of Vietnam Customs showed that in August 2015, Vietnam shrimp exports to the UK  worth US$12.7 million, up 7% from the previous month but down 15.4% from the same period of 2014. In Jan-Aug 2015, shrimp sales to the market hit US$72.4 million, up 24.4% year on year, which is the highest growth among Vietnam's top 8 shrimp importing markets. Vietnam shrimp exports to the UK has been increasing since February. 

Shrimp imports into the UK have been growing in the past 5 years, except for the drop of 11% in 2012. According to International Trade Center (ITC), in Jan-Jul 2015, shrimp imports into the UK touched US$ 481.5 million, down 1.6% year on year due to price rises led by economic crisis and the depreciation of EUR against USD.  

Between January and July 2015, Vietnam was the third largest supplier of shrimp to the UK, just behind Canada and India, representing nearly 11% out of total shrimp imports into the UK.

Among top 10 largest shrimp suppliers to the UK, shrimp imports from Vietnam experienced the highest year-on-year surge of 48.4%, followed by Canada, the largest source to the UK which was 47.4%.

Meanwhile, shrimp imports from India, Thailand, Indonesia dropped by 20%, 38% and 7%, respectively. Shrimp imports from India fell due to lower production and higher price. Imports from Thailand went downward as shrimp export duty to EU got higher. EU's generalized scheme of preferences (GSP) came to an end in 2014 and tax on processed shrimp from Thailand increased to 20%. From January 2015, tax on raw shrimp increased to 12% from the previous 4%.

The market share of warmwater in the UK is increasingly high. The product is often consumed for making sandwiches and salad.

100/200 count farmed vannamei is the safest substitute coldwater shrimpIn mid-June 2015, demand for small-sized warmwater shrimp rose as prices for coldwater shrimp were high at GBP 8/ kg.

With the advantage in producing value added products, Vietnam shrimp exporters have opportunities for raising its market share in the UK because the market is in high demand for ready-to-eat shrimp, cooked shrimp and finger food.

Shrimp exports to EU in general and the UK in particular in the last months of the year are expected to rise, but the reusults can be quite modest. 

Top 10 shrimp suppliers to the UK

(Value: US$ thousand, Source: ITC)

Supply

Jan-Jul 2014

Jan-Jul 2015

Variations (%)

The world

489,507

481,520

-1.6

Canada

63,370

93,418

47.4

India

75,519

60,453

-19.9

Vietnam

35,110

52,116

48.4

Bangladesh

60,580

50,077

-17.3

Thailand

63,447

39,293

-38.1

Indonesia

36,710

34,161

-6.9

Denmark

34,545

29,494

-14.6

Iceland

28,042

20,361

-27.4

Honduras

13,967

18,173

30.1

China

13,576

14,339

5.6

 

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