Shrimp - Global Sales in the First Half of 2023

Vietnam: A difficult start with signs of recovery

Vietnam, one of the world's leading shrimp exporters, saw exports to China and Hong Kong fall 16% to a total of $281 million in the first half of 2023 compared to the same period last year. This development was particularly evident in the first few months of the year, when the decline in exports was significant. China and Hong Kong are major buyers of Vietnam's shrimp, in particular they mainly import frozen raw shrimp. These make up a significant share of 97% of total imports from Vietnam.

However, despite the generally difficult start to 2023, Vietnam recorded a positive turnaround in June. For the first time since the start of the year, the country's shrimp exports recorded a 16% year-on-year increase, bringing total exports to $67 million. Since March this year, the monthly decline rate has also steadily decreased, indicating a gradual recovery of Vietnam's shrimp exports.

Argentina: Inflation hits the shrimp industry hard

Argentina's shrimp market is currently in a difficult situation, mainly due to falling demand from Europe and China. Market demand is low while there is an abundant supply of whiteleg shrimp on the market, making it difficult for Argentine shrimp to remain competitive.

In addition, the Argentine fishing industry faces the challenge of high inflation, which has greatly increased production costs. The annual inflation rate already reached 94.8% in 2022 and rose to a shocking 114.20% in May 2023. This has resulted in stagnant revenues and negative profit margins for Argentine fishing companies.

Ecuador: Stable growth despite global challenges

Ecuador, another major player in the global shrimp market, recorded stable growth in its shrimp exports in the first half of 2023 despite global challenges. In total, the country exported 606,049 tons of shrimp worth around $3.3 billion. This represents a 19% increase in volume compared to the previous year, while the value of exports remained stable.

Notably, exports to China were particularly strong, with a volume of 375,591 tons and a value of $1.9 billion.

USA: Shrimp prices hit rock bottom, but recovery is imminent

The United States, one of the largest shrimp importers in the world, is seeing significant changes in the first half of 2023. Market sources point out that it is still unclear when shrimp import prices will bottom, but once they recover, the rebound will be significant.

Demand for shrimp is expected to increase once prices become comparable to chicken meat prices. This trend was predicted earlier this year and the decline in shrimp prices is expected to end by August.

Overall, the first half of 2023 presented a challenge for shrimp markets worldwide. However, Vietnam is pointing to a possible recovery, while Ecuador is showing strong growth despite global turmoil. The coming months will be instructive, especially for the US market, which expects a significant recovery in shrimp prices.