October 1, 2004

Brazil Shrimp Exports To US Dive 54%

After rising steadily for six consecutive years, Brazilian exports of shrimp to the United States took a nosedive this year. Between January and August, the exports were down 54%, compared with the same period last year.

According to Itamar Rocha, president of the Shrimp Breeders Association, the plunge in figures were attributed to three reasons: a lack of government financing, a decrease in investments in new technology, as well as an anti-dumping suit brought by eight shrimp-producing states in the southern US.

As a result of the anti-dumping suit, Brazilian shrimp exporters now face a 23.6% tariff in the US and have little chance of exporting the volume (21,800 tons) they exported last year.

Rocha reports that Brazil will begin negotiations with the US on the issue immediately.

Meanwhile, Brazilian shrimp exporters are now focusing on the European and Asian markets. They hope to at least equal last year's results when shrimp export revenue totaled US$ 226 million with the sale of over 58,000 tons on international markets.

Rocha says that is a disappointment, pointing out that the original target for this year was to export 76,000 tons with revenue of US$ 300 million.