April 28, 2009

Brazilian state shrimp production poised for recovery

Rio Grande do Norte, north-eastern Brazil, farmed shrimp industry is poised for resurgence this year, as a result of higher production and solid expectations on recovering the international market.

The optimistic forecast follows a disappointing 2008 that saw many harvests affected by abundant rains in the state.

The Brazilian Association of Shrimp Breeders (ABCC) president Itamar Rocha said farmed shrimp production may surge by 500 percent this year, with foreign sales also exhibiting an upward tick.

Rio Grande do Norte is Brazil’s most important shrimp producer and exporter, but was hit quite hard by the retraction of the external market and by infrastructure and production problems.

According to Rocha, the state produced 26,000 tonnes of shrimp last year and barely exported 6,000 tonnes.

He said that small shrimp will be most in demand, adding that as of May, a revision of prices will be carried out and then an overview of exports will be drawn, and if the expected growth does not occur, the internal market will still dominate.

He stressed that Brazil shrimp production is worth BRR40 million (US$18 million), whereas global shrimp production is valued at US$14 billion.

Fifty containers with 1,000 tonnes of Brazilian shrimp harvested from the states of Ceara and Rio Grande do Norte will be shipped to Europe in late May.

According to local media, the shipment will effectively mark the return of domestic shrimp's sale on the international market, at a time when both states project increases of around 20 percent in local production.

US$1 = BRR2.228 (Apr 28)