December 5, 2013

 

 

Japan is expected to raise the maximum residue limits (MRL) for ethoxyquin on Vietnam's shrimps to 0.2 part per million (ppm), 20 times higher than the current level of 0.01 ppm.

 

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), Japan's Ministry of Health, Labour and Welfare (MHLW) approved the MRL for ethoxyquin on Vietnamese shrimp and reported it to the World Trade Organisation (WTO) on November 29, 2013. The final decision on the MRL of ethoxyquin is expected to be officially announced by the end of January 2014 by MHLW.

 

In 2012, ethoxyquin inspection by Japan on Vietnamese shrimp took a heavy toll on Vietnam's shrimp exports. Vietnam's shrimp consignments must be tested for ethoxyquin five times (from raw shrimp to exported products), leading to increasing costs for exporters. Shrimp exports to the market in 2012 rose by only 1.7% over 2011.

 

In January-June of 2012, Vietnam's shrimp exports to Japan posted an on-year growth of 28%. However, shrimp shipment to the market started to fall sharply after Japan inspected ethoxyquin residue on 30% of shrimp consignments imported from Vietnam with MRL of 0.01 ppm in May 2012.

 

Japan decided to test ethoxyquin residue on all shrimp consignments from Vietnam in late August 2012. Thus, shrimp exports to the market remained on a two-digit reduction in the last six months of 2012.

 

Vietnam's authorities and enterprises had reportedly taken massive efforts to minimise ethoxyquin residue in exported shrimp. Vietnamese authorities sent official letters to Japan's relevant agencies, requesting the country to raise MRL for ethoxyquin in shrimps to one ppm, similar to that for finfish.

 

Recently, the National Agro Forestry Fisheries Quality Assurance Department (NAFIQAD) recommended MHLW to re-establish MRL for ethoxyquin from 0.01ppm to 1ppm. Vietnam's shrimp exporters have also strengthened the control of ethoxyquin residue from shrimp farming to processing.

 

According to safety alerts of food imported into Japan, till November 25, 2013, the number of shrimp consignments exported to the market, which contain ethoxyquin residue, has reduced to four, from 17 of last year.

 

In January 2013, Vietnam's shrimp exports to Japan began to recover as ethoxyquin problem was improved. Through October 2013, shrimp exports to the market enjoyed an on-year growth of 13% to reach US$574.5 million. Moreover, Vietnamese shrimp exports to Japan were further boosted due to Thailand's shortfall of raw shrimp caused by EMS and rise in global shrimp price.

 

The volume of frozen raw shrimp accounted for 69% of Japan's total shrimp imports. Through September 2013, Vietnam surpassed Thailand to claim the first position in supplying frozen shrimp to Japan with 24,806 tonnes, up 8.1%. While Thailand exported 15,964 tonnes of frozen shrimp to the market, the figure represents a drop of  38% due to vast decline in shrimp output due to early mortality syndrome (EMS).

 

Until September 2013, export value of Vietnamese frozen shrimp to Japan reported the growth of 37% -on-year owing to increase in average import price of frozen shrimp into the market.