VN - biggest supplier of processed shrimp to Australia

News 16:05 12/01/2017
(seafood.vasep.com.vn) Australia claims as the 9th biggest shrimp importer in the world, accounting for about 1.9% of total global export value of shrimp. In the last 5 years (2010-2015), the import volume of shrimp into Australia ranged from 31-42 thousand MT. That reached a peak at 42 thousand MT in 2010 and rocked the bottom point at 31 thousand MT in 2015 due to a fall in production, difficulties in global economics and currency fluctuations.

In the first 8 months of this year, Australia's shrimp imports reached 18 thousand MT, worth by over US$ 167 million; up 2.1% in volume but down 9.2% in value compared to the same period in 2015. Viet Nam remained as the largest supplier of shrimp to this market, making up over 33% of total shrimp imports into Australia.

In Jan-Aug 2016, the import value of shrimp into Australia from top 5 largest suppliers decreased; in which, imports from Indonesia (the largest one) dropped by 50%, followed by Malaysia with -30%, Viet Nam with -8.3%, Thailand with -1.9% and China with -0.3%. China, Thailand and Indonesia are the main competitors of Vietnam’s shrimp in Australia.

Australia stayed as the 7th largest buyer of Vietnam's shrimp, picking up 3.3% of Vietnam’s shrimp exports. In the first 3 quarters of this year, Vietnam’s shrimp exports to Australia fluctuated significantly. In particular, the export value recorded the positive growth of 18.4% and 10.4% in March and September, respectively. Meanwhile, exports in the rest months were lower over the same period of 2015. The export value hit the highest level in September with over US$12 million; up 10.4% year on year.

In QIII/2016, exports recovered from the first 2 quarters but down 11% over the same period of 2015. In the 9 months of this year, Vietnam's shrimp sales to this market amounted to US$75 million; down 9.9% year on year.

Shrimp is the most highly traded seafood product in Australia with annual consumption volume of up to 50,000-60,000 MT. To meet the demand, on average, Australia has to import 30,000 MT of shrimp. However, due to strict regulations on disease control and food safety, so far, there haven’t been any countries exporting fresh whole shrimp to Australia yet. Therefore, Viet Nam will have a big opportunity to ship shrimp to the market.

In the last 5 years, Viet Nam retained as the biggest seller of processed shrimp to Australia. However, due to strict regulations on shrimp as well as imported shrimp products, Viet Nam mainly shipped boiled shrimp or breaded shrimp, not frozen whole shrimp to Australia. Meanwhile, demand for fresh whole shrimp in Australia is still high.

Vietnam's authorities are actively discussing with the Australian’s for the ability to export fresh whole shrimp to the country. In QIV/2016, there will be an Australian delegation of authorities coming to Viet Nam to inspect Vietnam’s shrimp and review the conditions under which Vietnam may meet to export fresh whole shrimp to Australia.

Australia currently ranked the 4th among top largest shrimp importing markets from Viet Nam. If Viet Nam can export fresh whole shrimp to Australia, Vietnam's shrimp will gradually strengthen its position on the international market.

Written by Kim Thu

Compiled by Dieu Thuy

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