Slump in global shrimp markets affects exports

The decline in the strength of the dollar against some major global currencies, slower growth of the US economy, anti-dumping tariff disputes and reduction in consumer confidence have all weakened the world’s biggest shrimp importer, the US, which accounts for an annual shrimp import of 5,50,000 tonnes valued at around $4 billion.

Shrimp Market Consistent Fall

This decline which has affected all categories and types of shrimp imports has deleteriously affected shrimp exporting countries, including Asian countries.

Indian shrimp exports to the US has been consistently falling in recent years while those to competing destinations such as EU and Japan have proved more resilient. While shrimp exports still remain the biggest constituent of Indian marine exports, it has been falling in both quantity and value in the export basket.

The position of India among the top shrimp exporting countries to the US has fallen to eighth in 2007. Following 10 years of constant expansion, 2007 was the first year when shrimp imports into the US witnessed a fall in quantity and value. The year 2008 has also not been significantly different.

Shrimp Market Survey

A survey conducted among the US consumers revealed that about two-third are reducing their consumption pattern and about half of them are eating out less. Most of the US consumers are turning to lower priced products. But a report published by the Marine Products Export Development Authority has also pointed out that the US consumers are less likely to cut back on retail seafood as against other foods. “These trends are likely to affect the demand for shrimp in the restaurant sector as one of the trade channels, while the effect on household consumption is not clear yet,” the report added.

Shrimp Market Volume Unchanged

US shrimp imports in the first half of 2008 at 2,36,000 tonnes remained almost unchanged in terms of volume compared to the same period in 2007. Asian countries such as Thailand, Indonesia, China and Vietnam still dominate US shrimp markets, accounting for the bulk of the imports. However, India is still to regain the importance that it had in the US shrimp market before the anti-dumping measures were initiated against the country.