August 6, 2013

Global shrimp prices rise due to EMS spread

Global shrimp prices have escalated to nearly US$9/kg in just a month after shrimp production in several Asian countries decline due to the outbreak of the early mortality syndrome (EMS) in aquaculture farms.

The average shrimp price, which was between US$7/kg and US$8/kg four weeks ago for 20-30 pieces/kg have risen by about US$1 as a consequence of the reduction.

In this context, those that have benefitted from the current situation have been Ecuador and India, which have not been affected by the EMS and will see a rise in shrimp exports. So far this year, Asia, the most important production area in the world, has seen production of farmed shrimp decrease dramatically.

Thailand reported at the beginning of the year that it was expecting local shrimp production to be reduced by as much as 30% due to EMS. The disease spread from the eastern to the southern areas of the country, where the majority of the shrimp is cultivated.

The situation was even worse in Vietnam where as much as 80% of the output was affected by EMS. Disease outbreaks in 2012 meant shrimp farmers were unable to cultivate the next batch. Vietnam's shrimp industry is severely limited by the lack of funding for production.

Both Malaysia and China also experienced a sharp decline in shrimp production due to the disease. Until last June, shrimp world prices were decreasing as European consumer markets had been pressurizing exporting countries to lower them.

In Japan, due to a severe lack of black tiger shrimp (Caridina cantonensis), prices have shot to US$15.95/kg, with almost a US$5 increase. Thailand imports decreased due to the EMS outbreak, while those from Vietnam and India fell due to issues related to ethoxyquin.  Increased imports from both Indonesia and Argentina were insufficient to cope with the quantities needed.

In Japan, prices for Indonesian white-leg shrimp increased to US$13.1/kg, a US$1.8 increase compared to the previous price of US$11.32 during the first half of 2013.

Meanwhile, the US has also seen shrimp prices soar between 13% and 15%. Prices started going up at the end of December 2012 and have continued doing so during the first halfof 2013. Black tiger prices went from US$6.4 in January to US$7.4/pound in July. The white leg variety experienced a similar rise in price from US$4.10 to US$4.65/pound (a 13% increase), according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

Local producers in South America will also cut down farmed production this year due to the outbreak of the white spot virus.