Shrimp Market Report - May 2009 – EU
The European market for shrimp is weak
The European market for shrimp continues to be weak with both demand and
prices remaining low. The retail chain segment has reduced its orders
significantly and stocks are said to be piling up as a result of consumers’ lessening purchase power
and reluctance to buy comparatively expensive products. Demand is decreasing
on all major shrimp import markets. Import annual figures for 2008 indicate
that shrimp imports decreased by 7% in Spain,
by 2% in France and by 8%
in the United Kingdom and
by 1% in Germany
compared with 2007. In
general, demand decreased more particularly for expensive shrimp products,
such as processed products, chilled products or value-added products but that
was not always the case, depending on the market and on the period, with
fairly good end-of-year consumption.
Argentina, Ecuador and China share the lead on the
Spanish market
Compared with 2007 figures, 2008 annual Spanish shrimp imports lost 7% in
volume and 3% in value. The decline in imports is not consistent across all
products but differs according type. In 2008, 94% of
total Spanish shrimp imports were warmwater frozen
whole products. In this category, the decrease was 6%, while chilled products
decreased by 26%, coldwater frozen products by 19%, whereas processed
products registered a remarkable 23% increase.
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During the last quarter of 2008, when the economic crisis started to have a
serious impact on European markets, Spanish shrimp imports remained fairly
good with 56 000 tonnes, corresponding to only a 1% decrease in volume on
2007 figures and to an 11% increase in value. In October-December 2008,
coldwater frozen whole imports increased by 8% on the Spanish market but
decreased noticeably in value and entered the Spanish market at an average
unit value of EUR 6.18/kg against EUR 7.48/kg during the same period last
year. Warmwater frozen whole products recorded the
opposite trend, with an average unit value of EUR 5.33/kg against EUR 4.73/kg
in 2007.
Argentina, Ecuador and China shared the majority of
shrimp exports to the Spanish market with 17% market shares respectively. Although
these three countries today have an equal position on the Spanish market,
their historical background is quite different. Argentina registered ups and
downs on the Spanish market depending on the availability of Pleoticus muelleri and, in
2008, despite a difficult start, landings were quite good (around 47 000
tonnes). Ecuador
constantly increased its market share over the years since 2002 with an
average growth rate around 25% a year, and between 2007 and 2008, registered
a further 30% increase on the Spanish market. Up to 2004, China was almost absent from the Spanish
market and it is only from 2005 onwards that China
started to export around 27 000 tonnes a year to Spain.
Strong imports by France
notwithstanding the economic crisis
French shrimp imports in 2008 for all categories combined were 2% lower
compared to 2007 figures but were nonetheless very good compared with
previous years. In terms of value, imports were
stable.
The 2008 decrease
in volumes – compared with
outstanding results in 2007 - affected all
categories. However, while frozen whole imports decreased by only 1%,
higher-priced products such as fresh (-6%) and processed ( 8%) products
experienced a more drastic drop, which is not surprising in a period of
economic slow down. During the last quarter of 2008, with the effect of the
economic crisis, the decrease in shrimp demand was more perceptible on the
French market and imports decreased by 5% on the previous year figures. However,
surprisingly, some shrimp products, and more particularly most expensive
products, recorded very good import figures at the end of 2008 (processed
products +5%, chilled products +28%), showing that despite difficult times,
French consumers did not relinquish costly end-of-year food expenditures.
In 2008, the origin of products imported by France changed somewhat compared
to previous years. Ecuador
increased the volume of its exports by 23% (20 000 tonnes) and continued to
dominate the market. Indeed, out of the total 105 300 tonnes of shrimp
imported by France,
almost 20% was of Ecuadorian origin. India
and Thailand encountered
more difficulties in exporting to the USA, thus in 2008 increased their
market share in the French market, respectively by 11% and 19%. Consequently,
India became the second
largest supplier to France
in 2008 with a 10% market share of total imports. Madagascar with its
high-value products continued to have the favour of French consumers thanks
to the certification of its high-quality product but also to a decreased unit
value of EUR 8.39/kg against EUR 9.20/kg last year. Brazil saw its exports to France drop
drastically by 43% as a result of a production collapse and various economic
factors.
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Shrimp becomes less affordable to UK
consumers
Repercussions of the economic crisis are particularly strong in the UK food
sector. The economic recession is driving consumers away from expensive
products, including shrimp, and from restaurants where shrimp is mainly
consumed. People have changed their habits to adapt to lower purchasing power
and consequently fast food outlets, and particularly the traditional fish and
chips takeaways, have seen their sales increase significantly. Another
striking example of new responses in the UK to address the crisis is the
tremendous success, beginning last September, of a shop online selling
short-dated and out-of-date food and drink at highly discounted prices; a
practice which is legal although questionable. In this context, it is not
surprising that demand for shrimp, considered a “luxury” food item, has decreased
substantially recently. Moreover, mainly due to the depreciation of the
British Pound, the average unit value for all shrimp categories increased
significantly from the end of last year, as well as prices in the retail
sector, making shrimp less affordable to many UK consumers. The average unit
value for shrimp on the UK
market in 2008 was as high as GBP 4.18/kg against GBP 3.72/kg in 2007, while
frozen whole coldwater products recorded an even greater increase of 0.85
cents/kg.
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UK annual import figures indicate
that in 2008 UK
total shrimp imports decreased by 8% in volume and by 3% in value. All
categories were affected by the drop and in particular, the frozen sector
decreased by 9%, the chilled sector by 17% and the prepared and preserved
sector by 8%. The proportion of coldwater shrimp imported by UK continued
to decrease in 2008. With only 32 700 tonnes imported, the major market for
coldwater shrimp in Europe shrank somewhat
and lost 11% on 2007 figures and 20% on 2006 figures.
Taking into account imports of the last quarter of 2008 only, in order to
observe the impact of the economic crisis, it is interesting to note that UK
shrimp imports amounted to 22 800 tonnes, corresponding to an 11% decrease
compared to the same period in 2007. However, due to the local currency
devaluation, in terms of value UK imports registered a 9%
increase on 2007 figures. Actually, with almost 106 million pounds, the value
of imports for the last quarter has not been as high during the past five
years, with products entering the UK market at an average unit value as much
as GBP 4.65/kg (against GBP 3.80/kg last year). This trend is particularly
true for prepared and preserved products imports (decreasing by 13% in volume
and increasing by 8% in value) and for frozen products imports (decreasing by
9% in volume and increasing by 11% in value) whereas chilled product imports
collapsed.
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In 2008, Iceland kept its
position of largest supplier to the UK (mainly cooked and peeled
products) but saw its exports to this country decrease by a further 15% in
2008 compared with the previous year. The second largest shrimp exporter to
the UK, Thailand, experienced the opposite trend with
regular increases of volumes exported to the UK over the past few years and a
5% increase in 2008 compared to 2007. Thailand,
having had difficulties in exporting to the USA,
found a niche in Europe and exported 9 800 tonnes to the UK in 2008. The
expansion of Thai exports was recorded in the frozen whole sector (+17%),
while C&P shrimp from this country decreased by 6%. Denmark also lost market share on the UK market
with 9 600 tonnes against more than 10 000 tonnes in 2007. India lost ground with a 26% drop but found a
good substitute market for its products in France. By far the biggest
increase in volumes sold to UK
was recorded by Viet Nam
(+65%). Norway increased
its market share in the prepared and preserved coldwater shrimp sector thanks
to an 18% increase in its total exports to the UK, while Canadian supplies
collapsed in this sector ( 33%).
The German shrimp market is rather static
The fact that Germany
entered into recession during the third quarter of 2008, and registered a
further 2.1% decrease of its GDP in the fourth quarter of 2008, did not have
a drastic impact on its shrimp sector. German shrimp imports, which had
developed steadily at a strong growth rate during the past few years, settled
down in 2008, decreasing only slightly (by 1% in volume and by 4% in value).
As in other European countries, the decrease in shrimp imports is mainly due
to a reduction in fresh (-70% of imports, on 2007 figures) and processed (-5%)
product demand. Lowered purchasing power and increased uncertainty push
consumers towards to less expensive products. Total whole frozen shrimp
imports were more or less stable and entered the German market at an average
unit value of EUR 5.21/kg against EUR 6.60/kg for C&P products and EUR
9.93/kg for fresh products.
The warmwater shrimp market in Germany was dominated by Asian countries,
which in 2008 saw their volumes to this market increase noticeably, with the
exception of India,
which experienced a 10% decrease. Coldwater shrimp products represented
around 30% of total imports with Danish (2 700 tonnes) and Greenlandic (2 300
tonnes) products accounting for half of imports in this category.
Outlook
In nearby all European countries, consumers have changed their habits to
adapt to new economic constraints. The trend which includes saving on
restaurant visits and on expensive food items is expected to last for some
time. All EU countries are predicting more difficult times and worsening
economic situation for all of 2009, giving little likelihood that
comparatively expensive food items, such as shrimp, will register an increase
in demand. The period of Lent (40 days before Easter) is normally a good
period for seafood consumption, particularly in Southern
Europe where the Christian rituals are more closely observed. However,
this year, demand seems to be below expectations. It appears, though, that
European consumers are not ready to give up with festive food and that they
are ready to pay higher prices occasionally on high quality products, such as
wild-caught products or organic products.
By Karine Boisset (GLOBEFISH)
© FAO GLOBEFISH 2009
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