Low production of shrimp in Southeast Asia, while ex-farm prices may move upwards

A general overview implies lower availability of raw material in major shrimp producing countries, particularly in Asia.
In China, farming efforts this year have slowed, even though EMS disease has in general been under control. Farmers that lost crops in 2015 to disease are not keen to continue farming shrimp this year. Reportedly, production is recovering in the Hainan area but in Zhanjiang and other areas, availability of good quality post larvae is poor, likely due to environmental pollution.

Availability of raw material is also limited in India. As of June, overall production during the first half of the year remains lower than average in Andhra and Tamil Nadu, the two major faming areas of vannamei. Farms in Tamil Nadu are affected by the heat wave and diseases (EHP, white feces). Early harvests mostly consisted of smaller sizes (10g/pc) destined to domestic markets at strong prices for farmers and traders. Export processors in Andhra and Tamil Nadu are sourcing raw material from Odissa and West Bengal to supplement, as production in these areas are better.

Poor availably of local raw material is also reported in southern Viet Nam due to drought and saltwater intrusion as well as EHP and white feces disease. According to the Ministry of Agriculture and Rural Development (MARD), production in large farming areas in Ca Mau, Kien Giang, Tra Vinh and Ben Tre provinces is poor, with conditions showing no sign of improving in the near future. Since May/June, Chinese traders have been heavily trading in Southeast Asia, buying shrimp directly from farmers in Viet Nam and Thailand at good prices. As a result, local export industries are now facing a raw material shortage.

In some positive news for the sector, overall production in Indonesia has shown signs of improvement so far this year. Vannamei shrimp farmers that took a break from farming in 2015 are now reporting high density production with new areas being developed for farming. Fortunately, there has been no severe drought, though white feces disease has been reported throughout the country. Meanwhile, the Ministry of Fisheries plans to revitalize black tiger farming particularly in Northern Kalimantan (Tarakan). The dry season is expected from July onwards

Ecuador reported moderate to high production supplies during the first quarter of the year. However, since the earthquake in April, supplies have slowed down.