Shrimp Market Report - July 2008 - EU
Spain and Italy which have experienced a constant expansion of their shrimp imports in recent years, recorded a sudden decrease at the beginning of this year with only 26 000 tonnes imported by Spain (a 24% drop in volume and a 29% drop in value compared to the same period last year) and only 13 000tonnes imported by Italy ( a 14% drop in volume and a 15% drop in value). This decrease was mainly due to lower shipments from major suppliers and in particular from Argentina. 
After having regained its leading position among shrimp exporters to Spain at the end of 2007, Argentina plummeted again to the fourth position and to the fifth position in Italy. As anticipated in the previous GLOBEFISH Highlights, Argentine shrimp catches were exceptionally low during the first quarter of 2008 (-78% on 2007 figures). Moreover, the situation is not expected to improve since official catch figures for April and May also appear extremely low. However, the decrease in imports was not only caused by the lack of availability of Argentine Pleoticus muelleri. Indeed, all major suppliers to Spain and Italy registered a drop in their exports to these two markets and this is particularly true for Vannamei producing countries. The two exceptions to this decrease among top suppliers were Morocco (+8% - mainly Parapenaeus longirostris) on the Spanish market and of India (+27% - mainly Black tiger) on the Italian market.
China, current leading supplier to Spain, saw its exports decrease by 16% on this market and by 57% on the Italian market. Ecuador also diminished exports to Spain (with a 6% drop in volume) and to Italy (with a 13% drop - still remaining, however, by far the number one supplier with 31% market share) and chose to exports more products to France. In terms of value, the decline was even more important fas far as major exporters to Spain and Italy are concerned. Argentina recorded a striking 66% drop in value on the Spanish market.
Consequently, the average unit value for all suppliers and all categories combined, lost 0.31cents/kg on last year on the Spanish market. For Pleoticus muelleri from Argentina the decrease was of minus ?1.22/kg compared to last year unit value and of minus ?5.75 on 2006 unit value.
Malaysia saw its shrimp exports decrease on all European markets during the first quarter of 2008 (-3% on the French market, -44% on the Italian market, -33% on the UK market) and the situation is expected to worsen in the coming months due to a recent voluntary suspension of seafood exports to EU by Malaysian authorities following an EU inspection mission and in order to avoid a ban.
French market in further expansion
Contrary to Spain and Italy, France continued to expand its shrimp imports in the first quarter of 2008 with 23 500 tonnes worth 11.3 million euro, a 11% increase on the same period last year in both volume and value terms. It is mainly in the frozen whole category that the expansion occurred (+ 15%), whereas processed products decreased by 4% and chilled products by 19%. Ecuador confirmed its position as the number one supplier to France with an outstanding 63% increase of its exports compared to last year (4 700 tonnes) strengthening its market share (20%). India reached the second place among top suppliers to France with a 4% increase. Brazil continued to loose ground with only 1 900 tonnes corresponding to a 42% decrease on last year figures. The general growth of shrimp imports in France was also due to the recovery of Madagascan exports (+50% on last year figures). Madagascar has always been a traditional supplier of high value shrimp to the French market but demand had somewhat shrank in recent years to benefiting countries producing cheaper products. Colombian exports to the French market, which have been growing constantly in recent years, also recorded a notable 62% increase.
Shrimp market continues bleak
Shrimp exporting countries - such as Thailand, Indonesia, Ecuador, India, etc. - which presently expand their presence on the European market in order to counterbalance adverse circumstances on the US market will soon encounter further difficulties also on the European market where consumption is slowing down significantly. Given the general economic situation, shrimp prices are unlikely to continue at such a low level.
The international prices for shrimp appear to differ from the global trend of increasing food prices. This situation is unlikely to prevail much longer. The final change in shrimp prices will still depend on many factors including the rising costs in fishing, farming, processing and transportation etc. In the short run, however, there is very little room for shrimp price increases, given the present bleak demand in the EU market.
