December 3, 2009

No festive cheer for US shrimp market

Demand for seafood products, especially shrimp, is likely to remain stable to moderate this month in the US markets. The US economy is starting to show signs of the downturn slowing down but these positive signs are yet to change consumers' perceptions.

Uncertainties continue to daunt the US consumers' minds and it is not proving to be good for the upcoming festive and Christmas season. Consumers are saving more and spending less, especially at restaurants where most shrimp consumption takes place, a report published by the SEAI said.

This trend is expected to persist into the upcoming festive season. Once the economic recovery is seen to be under way, increases in consumption, including those in high-value seafood, can be expected. Although shrimp imports into the US recorded a fall in value during the first half of the current year, the total quantum of imports remained more or less stable. This trend is expected to continue into the second half of the year as well.

As long as consumer confidence is low and consumption is down, high-end products such as shrimp will not show significant increase in demand, the report said. Over-supply and low prices continue to prevail in domestic market for the US wild caught shrimp that is setting the benchmark for the low prices.

However, on the other hand, Indian exporters remain bullish after the steep cut in anti-dumping duties on Indian shrimp exports to the US. Shrimp exports to the US have begun to look up in the past few months, they said.