Indonesia Shrimp Market Update : June 16, 2015
Supply of Indonesia vannamei raw material expected to be plentiful until Mid July. Farmers will harvest their ponds prior to the Ramadan Holiday (Eid el Fitr) that will run from about July 15 – 23.
Business should be back to normal by 27 July. Normally price is lower during the holiday period due to lack of demand from processors who are closed and will usually move up at some point after. This year due to more uncertainty in the market as well as plentiful supply from other origins, it is difficult to predict when prices will should move up again.
Some farmers will harvest their ponds in East Java area and in Central Sulawesi area soon and the main sizes are 30 – 50 pcs/kg HOSO. The ponds in Lampung (South Sumatra) area still supply medium sizes (50 – 70 pcs/kg) HOSO due to ongoing incidences of white spot disease.
Due current sluggishness in overseas markets, some processors are offering aggressive prices to move out existing inventories. We do not see much likelihood for prices to move up until demand from US, Canada, EU, Japan, China, etc improve. We understand that overseas inventories remain higher than usual, particularly in the USA and importers are buying conservatively.
With good supply of raw material in producing countries, it seems that prices will remain soft or static until overseas demand increases.