China Shrimp Market Update General Information : September 21, 2016
A) Total harvest – Vannamei White shrimp 2012-2016
|Quantity ( metric tons )||0.95 million||0.9 million||0.80 million||0.75 million||0.70 million|
|Percentage of domestic sales||60%||65%||70%||75%||80%|
|Imported shrimp||45,000 tons||50,000 tons||75,000 tons||100,000 tons||115,000 tons|
B) Disease Issues
EMS started in China 2010-2011. A number of methods have been tried to bring the disease under control but mostly with mixed results. EMS is still prevalent in China.
C) Other causes for production problems include:
1) Weak fry, China fry suppliers are very fragmented, several hundred small players using cheap prices to attract farmers. Quality is very inconsistent.
2) Poor quality feed – again, too many players in the market, many using poor quality fish meal and other ingredients.
3) Pollution – Industrial pollution has a major impact on water quality
4) Weather – Typhoons, flooding, etc.
5) Many shrimp farmers have converted shrimp ponds to fish ponds to take advantage of high prices for live fish in the China market.
D) Production cost increases
1) Feed ( 6-8% increase per year )
2) Labour and farm rental cost ( 6-8% increase per year )
E) Shrimp harvest in China
Shrimp season in China is typically end June to November.
F) Production Forecast for 2017
Expectations for production for 2017 similar to 2016, about 0.70-0.75 million tons for total harvest.
G) Other developments
1) More and more farmers are supplying live shrimp directly to restaurants at good prices, instead of selling to factories for reprocessing for export.
2) Imports of shrimp from India and other Asian countries for further processing continues to grow.
3) Imports of shrimp from South and Central America for domestic consumption continues to grow.
4) China breaded shrimp exports continue to be strong and prices remain competitive.
5) More and more China shrimp processors shifting part of their production capacity for the domestic market. Some factories looking at setting up facilities in other countries such as Indonesia to capitalize on exports from 3rd countries directly to USA and other markets as well as import product into China.
6) Currently, China raw material prices for shrimp are good and worthwhile for the farmers. 100 pieces per KG ( HOSO ) selling at RMB 30/KG. Farmers are happy with such a price, however failure rate is too high and this discourages many farmers from seeding.