How a Chinese blogger changed the shrimp market dynamics

Lily - Senior Analyst
Lily - Senior Analyst
21 Feb 2024
Vannamei Tip
# 106

On February 18, a professional blogger with an following of 2 million people brought to light concerns over the sale of Ecuadorian vannamei shrimp by a specific brand, alleging the concealed addition and excessive use of sodium metabisulfite. This revelation, coming from such an influential figure, has not only ignited online debates but also triggered a rigorous inspection regime at Tianjin Port. Now, all containers arriving at Tianjin Port are being tested before entry, causing delays in release and extra costs for importers.

Containers from two companies were found exceeding sulfur dioxide limits and were returned, with several ports suspending imports of shrimp from these exporters. On the other hand, we have not received a clear indication that the Chinese government has changed any regulation.

The process of adding sodium metabisulfite, a common practice in the seafood industry, is used to preserve the color and freshness of shrimp, ensuring they remain appealing to consumers from the moment they are caught until they reach the dinner table.

The limit of sulfite in China was not new, but until now, rejections due to sulfite levels have been rare. Amid these developments, the market response has been mixed, with some Chinese stakeholders adopting a ‘wait-and-see’ approach.

The impact of these inspections and the resulting market shifts demonstrate the volatile nature of the shrimp industry, influenced by regulatory measures, quality control standards, and consumer trust.

This incident is very new in China, so the impact on the short-term demand of the Chinese market remains uncertain. The careful approach, along with the current delays and  extra checks at ports, could potentially soften demand from China, leading to a downward pressure on shrimp prices in the near term. Professionals within the shrimp market must stay informed and adaptable as the situation continues to evolve.

We will continue to monitor this situation closely, providing updates and insights as new developments unfold.

Read our follow up article: The Blogger’s impact: Latest developments in the global shrimp market

 

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