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Shrimp Market Report - February 2008- Europe
GENERAL TREND
During the period January-September 2007, combined shrimp imports for the EU,
the USA
and Japan
decreased slightly compared to the same period in 2006. Within this group,
the EU was not only the major market with 439 000 tonnes imported (extra-EU
imports only) but was also the only market in expansion. All European markets
(excluding the UK)
continued to grow and to consolidate. The European shrimp market was largely
influenced by the US
shrimp market situation. Indeed, key exporting countries to the USA such as Thailand, Indonesia, Ecuador,
encountered more difficulties in exporting to this country due to the
devaluation of the dollar, the slower US economy
and anti-dumping tariffs. Therefore, they looked for new opportunities in
other markets and turned mainly to Europe
where the situation is more appealing.
Thailand
is the most striking example of this situation. Thailand became
the top supplier to Germany,
multiplying three fold its exports to this market in one year and it also
doubled its exports to the UK. Ecuador, one of
the booming exporters on the EU market consolidated its number one position
in Italy,
registered a 40% increase in the French market and developed on the Spanish
market with a 9% increase of its exports. Indonesia
also expanded its exports to the EU market and more particularly found a
niche in the UK
market. China
continued to gain market share in Spain. Argentina,
thanks to very good landings of Pleoticus muelleri during the first three quarters of 2007,
expanded notably on the Spanish market where it retrieved its position as
number one supplier. It also doubled its volumes exported to the Italian
market. India
had more difficulties on the UK market,
where it remained first supplier but with a 10% decrease. Black tiger (number
one species in India)
is loosing in popularity in some world markets and has difficulties in
competing with the cheaper Penaeus vannamei which is produced extensively in other Asia countries. However, despite
this gloomy situation, India
increased by 15% its exports to France. Brazil
continued to show signs of weakness and registered a
20% decrease on the French market during the January-September 2007 period
compared to 2006. French annual statistics for 2007 show that Brazil has been
overtaken by Ecuador
as top supplier. On the Spanish market Brazil
represented only 4% of total imports, in contrast to the highs of previous
years in this market.
SPAIN ARGENTINA RECOVERED ITS TRADITIONAL POSITION OF FIRST SUPPLIER TO
SPAIN
During the third quarter of 2007, shrimp volumes imported by Spain continued
to expand and reached a record high level with 122 000 tonnes. However, in
terms of value, shrimp imports showed the opposite trend and declined by 10%.
Indeed, shrimp products entered the Spanish market at an average unit value
as low as 4.86/kg, corresponding to a drop of 0.80 cents on the average unit
value of the past five years.
The period under survey was characterized by the Argentina recovery
of its top position among shrimp suppliers to Spain. During
years of gradual lower availability (2003-2005) of Pleoticus
muelleri, Argentina had lost ground on the Spanish
market, at the beginning to the benefit of Brazil and Ecuador and later to
the benefit of China (from 2005). In Jan-Sep 2007, Argentine shrimp exports
to Spain
almost reached 2002 levels with
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992 tonnes and the country regained its historical predominant market share
(+86% on 2006 figures). The cause behind the very low unit value in the
Spanish market was large volumes of low cost products from Argentina coupled
with the general slump in shrimp prices. Although imports in Jan-Sep 2007
were almost equal to 2002 figures, unit values for Argentine products were at
5.09/kg against 7.36/kg in 2002; it also correspondents to half the average
unit value for 2005 (10.54/kg) when availability was at its lowest level. Argentina shrimp
catches were expected to be at record high levels in 2007 but they did not
live up to expectations. Indeed, landings were extremely high up to September
but the last three months were disappointing. According to SAGPyA (Secretarνa de Agricultura, Ganaderνa, Pesca y Alimentos), total
annual Argentine shrimp catches for 2007 amounted to 46 400 tonnes
(provisional figures) representing a 4% increase only on 2006 figures.
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During
the period under review, China lost its
position of first supplier to Spain but
continued to see its shrimp exports to this country increase slightly (19 210
tonnes in Jan-Sep 07). Following difficult years due to the EU ban, China emerged
on the Spanish market in 2005 to constantly strengthen its position in recent
years.
Ecuador,
one of major emerging countries on the EU market due to the unfavourable US
situation, continued to increase its market share on the Spanish market
thanks to a 9% increase on 2006 figures.
FRANCE
RECORD-LOW UNIT VALUE ON THE FRENCH MARKET
During
the third quarter of 2007, French shrimp imports continued to increase in
terms of volume - at a 4% growth rate compared to the same period in 2006
but started to decrease in terms of value with a 3% drop compared to 2006. Total
shrimp imports for all categories combined amounted to 74 790 tonnes. The
average unit value on the French market was equal to 4.99/kg which was the
lowest level for the past 6 years. The decrease is not the fact of a single
country but is due to the world depression of shrimp prices. Brazil and Ecuador
continued to share the lead on the French market, with 15% and 14% market
share respectively. However, these two countries showed contrasting trends
during the period under survey. Brazil
experienced a 20% decrease on 2006 figures, whereas Ecuador
registered a 40% increase of its exports to France.
The
average unit value of Penaeus vannamei
from Brazil
was 3.10/kg and remained more competitive than products from Ecuador at
3.68/kg. Penaeus vannamei
offered on the French retail market has various origins (sample promotional
prices include: 40-60pc/kg 7.50/kg - 80-100pc/kg 6.50/kg from Brazil, Ecuador, Guatemala and Venezuela;
80-100pc/kg 4.94/kg from Colombia).
India,
third supplier to France,
increased by 15% the volume of its exports, followed by Madagascar which
experienced a further decrease with -4%. During the period under survey, the
French market for coldwater shrimp was on a downward trend. All major
supplying countries saw the volume of their exports decrease significantly
compared to 2006: Netherlands
( 11%), Belgium (-9%), Denmark (-21%).
UK
THAILAND
DOUBLED ITS SHRIMP EXPORTS TO THE UK
During the third quarter of 2007, UK
continued to register a fall in its shrimp imports (-3% in volume and -5% in
value), although the gap with previous years was less striking than at the
beginning of the year. Imports of frozen products were stable and corresponded
to almost 48% of total imports (29 550 tonnes). The situation was more cloudy
for the processed category which decreased by 6% (31 200 tonnes). Processed
products in the UK
being mainly coldwater shrimp species, the drop in supply in this category
was mainly due to lower availability from key partner countries. Iceland the
number one exporter to the UK with almost 20% market share (11 590 tonnes),
decreased by 9% the volume of its exports during the period Jan-Sep 2007
compared to the same period in 2006. Denmark, which
holds the third rank among UK shrimp
suppliers, followed the same trend with a 13% decrease, so did Canada (-10%)
not to mention Norway
which experienced a drastic 40% drop.
Coldwater shrimp corresponded to only 45% of total imports during the Jan-Sep
2007. This represents a 16% drop on 2006 figures and an important change in
the traditional pattern of UK shrimp
imports.
Among warmwater shrimp exporters, India (number
two supplier to the UK)
reduced its exports to this country from 8 400 tonnes in Jan-Sep 2006 to 7
500 tonnes Jan-Sep 2007 (-10%). Indonesia was able
to benefit from this situation and increased by 20% its exports to the UK. However,
the most striking phenomenon was the boom in Thai shrimp exports to the UK. Volumes
of Thai origin doubled compared to 2006, with almost 6 000 tonnes. Thailand is a
newly emerging country on the UK market
and this trend may be confirmed and enhanced in the coming months. The number
one importing country for Thai shrimp products is the USA (61% of its shrimp
exports in 2006) and the UK may be becoming a good subsidiary market to
compensate for weak export figures to this market.
ITALY ARGENTINA
REGAINED GROUND ON THE ITALIAN MARKET
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Similarly
to almost all European countries, Italy saw its shrimp imports increase
during the third quarter of 2007 (+3%) but with products of lower value
(-10%). Total shrimp imports amounted to 50 243 tonnes with Ecuadorian
products representing 30% of the total. However, the increase in Ecuadorian
exports on the Italian market weakened during this period (-1% in volume and
-17% in value). Ecuadorian shrimp production and sales registered a major
growth in recent years. Although the USA is the
first market for Ecuadorian exports, it seems that many farmers prefer to
sell their productS to the EU. Argentina clearly
regained ground on the Italian market thanks to growing availability of Pleoticus muelleri and its
exports to this market more than doubled. Spain,
re-exporter of Argentine products, followed the same trend and recorded a 64%
increase.
GERMANY BOOM OF
IMPORTS FROM THAILAND ON THE GERMAN MARKET
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German
shrimp imports continued to expand at a soaring growth rate (+ 31% compared
to 2006). Contrary to other European importing countries, imports in terms of
value followed the same trend and the average unit value remained stable on
the German market. Unit value for frozen products were generally slightly
down but were balanced by processed product unit value for which the trend
was slightly up.
With an 18% market share (6 340 tonnes), Thailand took the
first position among top suppliers to Germany during
the third quarter of 2007, leaving India in
second position. Thailand
multiplied three fold the volume of its shrimp exports to Germany in only
one year, and products offered on this market (5.99/kg in 2007 against
6.53/kg in 2006) did not really reflect the price slump faced by Thailand. Despite
the predominance of Thailand,
India
did not loose ground on the German market and increased by 26% its shrimp
exports to this country. As in the case of Thailand, India had to
find new markets to balance very low export figures to the USA due to
the rising rupee against the dollar and to US anti-dumping duties. All
exporting countries with no exception - showed a positive development on
the German market. Netherlands
third supplier increased by 13% the volume of its exports to Germany (mainly
re-exports of processed products) and Vietnam had a
10% increase.
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The
EU market picture is slightly modified with the strengthening position of
exporters which are traditionally suppliers to the USA. This
trend is expected to continue and to be enhanced in future. A general trend
may also emerge for world producers to offer higher quality products and to
reduce quantities, in order to put an end to the present price weakness. For
example, in this context of over production, the aim of Thai shrimp farmers
would be to reduce shrimp production by 20% in 2008. Thailand, Ecuador and China have
recently made efforts to develop the production of organic shrimp and
environmentally friendly techniques. Producers are also encouraged to export
more value added products. On the other hand production costs are expected to
increase in 2008 due to rising oil prices.
Report prepared by Karine
Boisset
© FAO GLOBEFISH 2007
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