Recession crashes US shrimp market

The economic slump, anti-dumping tariff disputes, weakening dollar against other currencies and reduction in consumer confidence have severely affected the US shrimp market.

The US takes the biggest share of the world shrimp market, taking in 550,000 tonnes yearly valued at US$4 billion.

A recent survey reveals that about two-third of US consumers are reducing their consumption pattern as they have shifted to lower-priced food products. A half of them are eating out less, says the survey.

However, a report published by the Marine Products Export Development Authority said that the US consumers are less likely to cut back on retail seafood as against other foods. The report pointed out that "these trends are likely to affect the demand for shrimp in the restaurant sector as one of the trade channels, while the effect on household consumption is not clear yet." 

After ten years of constant volume shrimp purchase, 2007 was the first year when shrimp imports into the US witnessed a fall in quantity and value.

US shrimp imports in the first half of 2008 was almost unchanged at 236,000 tonnes in terms of volume compared to the same period in 2007. Asian countries such as Thailand, Indonesia, China and Vietnam still dominate US shrimp markets, accounting for the bulk of the imports. India will have to regain its important spot that it had in the US shrimp market as anti-dumping measures were initiated against the country. The position of India among the top shrimp exporting countries to the US has fallen to eighth in 2007.