by Amy Zhong : SEAFOODNEWS.COM [SeafoodNews]

Last year global shrimp output increased due to higher production in Ecuador and Thailand. However, Asia’s shrimp output was lower than expected, especially that of China and Vietnam.

In China, the shrimp industry produced 650 thousand tons in 2016, according to shrimp supplier Siam Canadian. About 80% of that was sold domestically. China’s annual output in 2016 was about 10% to 15% lower than that of 2015. This was due largely from low output in Guangdong.

A lack of modern aquaculture equipment is the main reason for China’s situation, said Siam Canadian’s manager for the Chinese region. Shrimp farmers were struggling for survival, he said. They had not done enough to prevent diseases, they bought shrimp seed at low prices but with high mortality rates, and they bought feed which was cheap but had pollution problems. Farmers have failed to work together as a group to solve problems and improve the situation, so China’s shrimp production is expected to continue its decline in 2017.

Vietnam Situation

Vietnam has been bothered by the problems of changeable weather and prevalent diseases in its aquaculture sector.

Farming of giant tiger prawns has also encountered difficulties. Production dropped by 30% last year due to pond salinization in the drought weather. Damage to tiger prawns, however, was smaller than to the farming of white shrimps.

Vietnam’s shrimp output rises slightly every year, according to the data from the annual meeting about seafood market. Overall, its white shrimp production generally increases with the rise of giant tiger prawns. “If Vietnam expanded its production of giant tiger prawns,” said Bill Dresser, the CEO of Sea Port Products Corp and chairman of the National Fisheries Institute Shrimp Council, “it could benefit shrimp consumption in both Vietnam and America,”

The country’s shrimp industry is troubled by unenthusiastic bankers and high-interest rates, following the prevalence of diseases in 2013. But annual output still reached 250 thousand tons. The high prices of giant tiger prawns are likely to motivate domestic farmers to increase their production. Although these prawns grow slowly and their stock density is low, the demand is stable and their prices stay at high levels.

Indian Situation

In India, shrimp aquaculture is stable and there is a reduction in its production of giant tiger prawns.

India’s aquaculture situation is better than that of Vietnam. But diseases have led to a reduction of about 5% to 10% in its shrimp output during 2016. Local farmers have been fighting diseases such as the EHP (enterocytozoon heptopenaei) and white spot syndromes, said Sree Atluri from Devi Seafood.

India’s shrimp production has been stable for the past two years. The annual output of 2016 is about 5% higher than that of 2015 due to the increase in shrimp output at the end of last year. There are new aquaculture regions where shrimp grow comparatively fast, according to Alturi. Although the prospect is optimistic for India’s shrimp production, farmers are worried about the exchange rates of the rupee.

India has gradually cut back production of giant tiger prawns during the past few years, while Vietnam’s output plummeted. So Bangladesh is under great pressure to meet market demand for these prawns. But the country is still troubled with problems of transportation.

Thailand Situation

Thailand’s output was not as high as expected last year due to lackluster performance in the fourth quarter. But the prospect is optimistic for this year. The country has done well in disease control last year.

However, Thailand’s output was lower than planned in the second half of 2016 due to diseases and heavy rainfall. Sellers encountered difficulties in sales, though shrimp sizes are comparatively large.

According to insiders, Thailand’s shrimp production declined in the fourth quarter because of the EHP. They are optimistic about the situation this year, however. Farmers have invested more in the ponds with low output. They will be renovated this year, which in turn raises the success rates of aquaculture.

Indonesian Situation

Indonesia has invested US$2.2 billion in shrimp aquaculture to build a profitable industry, but exports may continue to be reduced this year.

Such diseases as white spot syndromes have reduced Indonesia’s shrimp output by about 5% to 10% in 2016. Sumatra’s production is growing slowly, but it has the problem of exceedingly high stock density. The country’s shrimp output has decreased for the past two consecutive years.

Market shares of Indonesia’s products is estimated to decline to 55% in the American market this year. The numbers are likely to increase by 2% to 3% in both Japan and China. Total market share is expected to reach 18% in Japan and 10% in China.

The market situation for global shrimp farming will likely improve in 2017.

According to insiders, overall shrimp production tends to rise in the first half of this year. But India’s production is not going to improve until April or May owing to a temporary stopping of production in the east coast. The situation is similar in Thailand and Vietnam.

China’s seed stocking season starts in the late March and the fishing season begins in the late June. Shrimp production peaks around August to September. Diseases will be exerting a great influence on shrimp production this year. If everything goes well, more seed will be stocked in the mid of this year.

Vietnam’s shrimp output is expected to raise this year. China’s overall output is probably stable this year, according to Siam Canadian. But it is still too early to predict. According to insiders, China’s shrimp consumption will continue its increase. Prices are likely to stay stable without much increase in output. The country is expected to import more shrimp to sell in the domestic market or further process for export. The country is also expected to increase its competitiveness in the American market where large shrimp are more popular.

Source:

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