VannameiTips

05 May 2023

VannameiTip #84

Shifting Market Dynamics: Navigating Price Fluctuations and Supply Chain Uncertainties in the Vannamei Shrimp Industry

The Barcelona Seafood Show was alive with activity as producers and clients from around the world convened. Although many meetings were engaging, only a handful of sales were made.

Throughout the show, the dominant sentiment was that shrimp prices would decrease, but the precise extent remains to be seen.

China’s May 1 holiday resulted in heightened local consumption as numerous Chinese vacationers travelled however, a considerable inventory remains in China.

 Meanwhile, India’s shrimp output failed to achieve large volumes.

The current situation in Ecuador involves:

  • Ongoing rain affecting harvests.
  • The initiation of the first May harvest.
  • Factories working to complete most pending orders.
  • Chinese clients insisting on substantial price reductions, rendering desired prices unattainable for          farmers.
  • Raw material prices remaining uncertain as everyone anticipates stabilization.

The ideal outcome entails finding a balance between raw material prices, factory selling prices, and the prices Chinese clients are willing to pay. This balance, however, may not be achieved if:

  • Farmers opt to harvest minimally, awaiting better prices in subsequent harvests.
  • Chinese buyers postpone purchases in anticipation of further price drops.

As of now, the prices for shrimp sizes 20-30, 30-40, and 40-50 have been reduced, but it remains unclear if these prices are final or we can still expect some price reduction. Meanwhile, the impact on 50-60 and 60-70 sizes is expected to be less pronounced due to their smaller volume.

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Shifting Market Dynamics: Navigating Price Fluctuations and Supply Chain Uncertainties in the Vannamei Shrimp Industry
 

This post was written by: Lily - Senior Analyst

Lily - Senior Analyst

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