Shrimp exports increase by 71% in January 2024

Vietnam’s shrimp exports in January 2024 reached $242 million, up 71% compared to the same period in 2023. The prices of raw shrimp in some localities also rose in the first month of the year.

White-leg shrimp and black tiger shrimp exports recorded double-digit growth, while the export value of other shrimp types saw triple-digit growth. Fresh/frozen shrimp products experienced stronger growth compared to processed shrimp products.

Among the main destinations, China & Hong Kong showed strongest growth at 275%, reaching $42 million in January 2024. Thus, China & Hong Kong became Vietnam’s largest shrimp importing market in January 2024, accounting for 17.5% of the total.

In January 2024, shrimp exports to the United States continued the upward trend from the end of 2023, increasing by 77% to reach $41 million. The shrimp exports to the US in 2024 will be somewhat affected by the US countervailing duty investigation against shrimp from four countries, including Vietnam.

In the US market, Vietnam holds a 10% market share, ranking fourth after India (36%), Ecuador (22%), and Indonesia (18%). In 2023, peeled raw shrimp was the most imported category into the US, with slight growth; whereas breaded shrimp and steamed shrimp saw a decrease.

Shrimp exports to Japan and South Korea in the first month of this year increased by 30% and 21% respectively, reaching $37 million and $23 million.

After continuously declining in 2023, shrimp exports to the EU recorded a 22% increase to reach $30 million in the first month of this year.

Some shrimp companies stated that first-quarter orders have not shown signs of improvement because market demand remains weak. There are still issues such as high inventory levels, low purchase prices, and difficulties competing with shrimp from India, Ecuador, etc.

Some companies see more positive signals regarding orders, but they are concerned about the raw material supply amidst the offseason and diseases which may  result in low shrimp production.

The risk of countervailing duties are also a barrier to US importers and Vietnamese exporting companies. Vietnamese shrimp prices are still relatively high compared to other countries, causing apprehension among importers. Vietnam’s shrimp continues to compete with Ecuador and India in terms of price and supply, and the oversupply and price reduction cycle may continue until at least the first half of 2024.

(Source: https://vietfishmagazine.com/)