July 21, 2014

White shrimps drive down prices in China's markets

China's shrimp prices are declining due to a stream of white shrimps entering local markets, according to China Aquaculture Products Marketing Association (CAPMA).

In June, sales see a disappointing performance despite a large output.

Since late May, the vannamei shrimp price had decreased by about US$1.61 - US$3.22/pound for 40 shrimps. Farmers have sold a large quantity of their shrimp, due to the concern about the potential losses which possibly results from the prevalence of diseases at the early stage. This has led to a flood of shrimp coming into the markets of Zhongshan, Xinhui, Jiangmen and Shanwei.

Although the price is only US$3.06/pound for 40 shrimps in Dongguan, there is a very limited demand for vannamei. With the increase in shrimp supply, the price is falling in various areas.

More shrimps are expected to enter the market in the next few weeks as an oversupply in the vannamei shrimp market is expected.

Although processing plants will start purchasing shrimps in July, the price is expected to decrease further. This year, the market situation does not look promising during June and July.

However, improvement in shrimp price is anticipated during the August-September period.