The Hindu Business Line : Global shrimp prices likely to weaken

Kochi, Nov. 27 International shrimp prices, which were already depressed before the financial crisis, are likely to weaken further during the course of the year, the UN Food and Agricultural Organisation has said.

The import demand from the European Union, the US and Japan are likely to slow down and prices are likely to weaken further.

The EU, which until recently was an exception against the depressed shrimp markets of Japan and the US, has also begun to show signs of weakness.

The volume of shrimp imports into the EU was down 10 per cent during the first half of 2008 to 3,37,600 tonnes.

While France alone was able to increase its purchases, countries such as Italy and Spain registered massive declines, a report by the Seafood Exporters Association of India said.

Shrinking markets

With shrimp prices remaining weak and demand falling, shrimp production from both caught and farmed sources is expected to contract, as many Asian as well as South and Central American producers are reducing output.

While India has just commenced vannamei shrimp cultivation, countries such as Thailand are cutting down on vannamei cultivation and shifting to black tiger farming. Farmers in Thailand say that while vannamei cultivation is becoming unprofitable under the present circumstances, black tiger cultivation is becoming more profitable.

Squid prices also continue to remain low due to limited buying interest by Japan and the rush by Argentine squid fishing fleet to sell at discounted prices, the report said. This situation is expected to continue until early 2009.

Prospects for fish production in 2009 now point to a limited growth as weakening demand is expected to depress prices.

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