Market Trends of asia-pacific shrimp Industry
Growing demand for Asian shrimp across the globe will propel the production
- Asia accounts for two-thirds of world shrimp production, which is anticipated to grow at a steady or declining pace. With the rising production costs and diseases, many individual farmers in the region are either exiting or reducing their seeding rates. Indonesia accounted for the major production share in the region, accounting for around 40% of the total regional production in 2022, followed by Japan and India.
- Early in 2022, weather issues, diseases, and increasing feed costs in China and India had a negative impact on the overall growth. Diseases occurring in the region are a combination of consistently occurring issues such as Enterocytozoon hepatopenaeic (EHP) and early mortality syndrome (EMS). These issues lead to a decline in production and an inclination in production costs. To increase shrimp production in India, the Department of Animal Husbandry and Dairying launched a development program for inland fisheries and aquaculture, which helped provide financial aid and quality seeds to increase production quality across the country. The government launched the Pradhan Mantri Matsya Sampada Yojana (PMMSY) for five years, i.e., 2020-2021 to 2024-2025, which aims to enhance shrimp production and achieve an ambitious target of producing 1.4 million metric tons by 2024.
- Shrimp farming in Asian countries grew by 2.68% from 2017 to 2022. Vietnam, one of the major producers, is experiencing flat growth. Vietnam's shrimp production aimed to reach 1 million tons for the first time in 2023. The increase in shrimp production will help Vietnam's shrimp industry maintain its competitiveness with leading exporting countries such as Ecuador, India, Indonesia, Thailand, and China.
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Average regional prices are expected to remain stable, with ups and downs happening in major producer nations
- The shrimp prices in the region grew by 0.96% in 2022 from 2021. Shrimp production in Asia was expected to grow marginally in 2023. The prices are unlikely to recover significantly from their current levels. The combination of a global recession and a glut of shrimp in the market led to a decline in prices in the latter half of 2022, broadly in line with what was expected at the end of the first half. Feed costs are expected to improve somewhat as they reach their peak, but not enough to enable the Asian producers to expand.
- In Vietnam, the prices of white leg shrimps from intensive farms slightly increased by USD 0.08 – 1.6/kg in early May 2022. During the same period in the country, white leg shrimps (100 pcs/kg) were sold at USD 4.10 - 4.19/kg. The price of black tiger shrimp ranged between USD 9.73 – 10.16/kg for 20 pcs/kg, up by USD 0.04/kg from 2021, USD 8.00/kg - 8.45/kg for 30 pcs/kg, up by USD 0.21/kg from 2021, and USD 6.91-USD 7.35/kg for 40 pcs/kg.
- Shrimp prices in China grew by 5.77% from 2017 to 2022. In China, the domestic prices of commercial shrimp reached a low point, implying that farmers were no longer interested in stocking up for the wet season, which had become more challenging. Therefore, the low price of commercial shrimp in China can be the basis for a rise in consumption and export. If Vietnam fully implements the export safety certificates for shrimp, the prices of Vietnamese shrimp products will likely increase. The prices of shrimp exported from India, Thailand, and China reflected the advantages of being members of the WTO and the disadvantages of the shrimp diseases in Vietnam, which significantly affected the export prices of Vietnamese shrimp.
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