China Shrimp Market Update : March 14, 2017
According to white shrimp suppliers, major China shrimp pond seedings will start to take place late March.
White shrimp suppliers are saying 2017 shrimp production in China is expected to be similar to 2016, no major improvement anticipated. Factors include:
1) Land prices have moved up and many shrimp farm areas have been sold for commercial real estate. Hainan which was a major farming area in the past, has seen close to 40% of its shrimp farms was converted to commercial real estate. In Guangdong, there has also been a conversion from shrimp farms to commercial real estate but on a smaller scale.
2) Over abundance of sub-standard quality post larvae and feed.
3) Industrial pollution affecting many farming areas.
4) Typhoon and flooding – not predictable but has become more and more common over the past decade and has had a severe impact on aquaculture.
5) EMS and other shrimp diseases are still widespread and no proper structure or plan is in place on the government level or within the private sector to get control of this situation as they have in Thailand and other countries.
If China production remains at same level as 2016, white shrimp suppliers believe raw material prices will be the highest among shrimp producing countries. However, the Chinese domestic market seems to be able to accept these levels and consumption remains strong. Shrimp processing factories producing for exports will remain dependent in imports of raw material from India, Indonesia and other Asian countries.