Economic recession during the opening months of the year increases the demand for shrimp in all main markets of European Union. As supply available on the market was limited, prices started to move upwards. Many packers are not able to commit to advance contracts because of raw material shortages and rising pieces. In future prices are likely to go higher as the trade is expected to be brisk.
EU’s largest shrimp market is in Spain. Despite the economic crisis, Spanish imports in 2009 were almost on a par with the 2008 imports, at 160 000 tonnes. Argentine exports increased strongly in 2009 (+27percent) helped by record catches. In years of bumper production, export prices of Argentine seafood are very low. This situation helped the Spanish shrimp market to retain market share in the very difficult economic circumstances prevalent last year.
UK shrimp imports increase by 5 percent in 2009, with the cooked and peeled sector (C&P) mainly responsible for the increase. In this sector it is noteworthy that tropical suppliers increased their presence, while the traditional coldwater shrimp suppliers lost ground. Thailand exported 7 700 tonnes or 54 percent more than in 2008, and is now the number two supplier of C&P shrimp to the UK market. Viet Nam and Indonesia, too, expanded their exports to this market.
The other European markets reported stable imports, with the exception of Germany, where imports grew by a strong 17 percent. This market is very price conscious. In fact the average unit value of shrimp on the German market is EUR 5.83/kg, while some six years ago it was EUR 6.60/kg and has declined continuously since then.
Experts say that the markets are expecting improved supplies and lower prices from April onwards when the new harvest season begins. But the demand would be strong for shrimp in coming months.
