The Price Of White Shrimp, a Major Global Supplier, Has Continued To Decline, And The Market Is Facing a Serious Challenge

In recent weeks, the prices of white shrimp, the main supplier in the global market, have shown a continuous downward trend, and the market is facing unprecedented severe challenges. According to the latest statistical data, during the 24th week (May 27th to June 2nd), the prices of Vannamei Shrimp in many countries, including China, Indonesia, India, Ecuador, and Vietnam, have shown varying degrees of decline, with some areas' shrimp prices falling below the production cost line, causing huge economic pressure on the farmers.

In the Chinese market, the production peak is currently underway, but the live shrimp price of 60 per kilogram in Guangdong Province fell to 30 RMB (about $4.14) per kilogram in the 23rd week. Although the price of smaller-sized shrimp (80 per kilogram) has slightly increased to 31.50 RMB per kilogram, the overall shrimp price level in Jiangsu, Fujian, and Hainan provinces is at a low level. Although the shrimp price is relatively stable, many producers are still facing the dilemma of operating at a loss, and it is expected that the low price trend may continue throughout the summer.

As the world's largest shrimp exporter, Ecuador is also facing numerous challenges with its HOSO (head-off, shell-on) product, although the average price has remained stable during the 24th week. Specifically, the price of 20/30-sized shrimp is $3.90 per kilogram, while the price of 30/40-sized shrimp is $3.50 per kilogram. Despite this, thanks to a bumper harvest in April, Ecuador's shrimp exports have hit a record high of 111,684 tons after experiencing an unexpected decline in exports in the first quarter of this year. However, the US's anti-dumping tariffs still pose a barrier to trade flow.

India, one of the main suppliers of shrimp to the US, also saw a general decline in shrimp prices in the 24th week. Among them, the price of 60-per-kilo live shrimp with the headshell in the main farming state of Andhra Pradesh has fallen to 265 Indian rupees (about $3.18) per kilogram. Meanwhile, the prices of 50-per-kilo and 40-per-kilo shrimp are 290 and 330 Indian rupees per kilogram, respectively. It is worth noting that while the price of smaller-sized shrimp (such as 70-per-kilo and 80-per-kilo) has dropped by 13% compared to last year, the price of larger-sized shrimp has remained relatively stable.

The shrimp price in Indonesia also continued to decline in the 24th week. According to data from Indonesian company Jala Tech, the price of 30-per-kilo shrimp has fallen to 762,000 Indonesian rupiah, while the price of 40-per-kilo shrimp has fallen to 708,000 Indonesian rupiah. In addition, the prices of 50-per-kilo, 60-per-kilo, and 70-per-kilo shrimp have fallen to 639,000 Indonesian rupiah, 609,000 Indonesian rupiah, and 577,000 Indonesian rupiah, respectively. For 80, 90, and 100 per kilogram shrimp prices, they have been reduced to IDR 54,800, IDR 51,900, and IDR 49,700, respectively. Jim Gulkin, Managing Director of Siam Canadian Group, pointed out that Indonesia's raw material prices have fallen due to the new anti-dumping tax.

The shrimp price in Vietnam also shows a downward trend, following Indonesia. The price of frozen whiteleg shrimp in Vietnam has plummeted in the past few weeks, currently standing at IDR 92,300 per kilogram (approximately USD 3.63), a decrease of IDR 10,000 from two weeks ago. The prices of all specifications of shrimp have shown a similar decline. Industry sources revealed that the demand for raw shrimp has decreased significantly due to the slowdown in purchases by shrimp processors and the constraints on the supply chain caused by rising freight costs and container shortages.

In summary, the global shrimp price is currently experiencing a significant decline, with the price of Chinese whiteleg shrimp falling below the production cost line, which poses unprecedented economic challenges for farmers. With the fluctuation of market demand and the continuous adjustment of the supply chain, the future trend of shrimp prices still needs close attention.