Nothing changed in global Prawn – shrimp market will hinge on China, US foodservice…

It’s always been thus!

BUT – what is of note but not shown in the headlines is the ability to turn on/off the shrimp production taps to market. Flexibility on demand with white shrimp. Big difference to slow salmon protein.

No headline mention by Rabobank of increase in Chinese white shrimp aquaculture for 2021. The real driver metric to watch perhaps?

China accounted once for 60% of global shrimp farming production and this can have serious blowback to countries like Ecuador who, once again, turn to US foodservice value added regional markets instead of the smaller heads on flow to Europe/China.

Europe is ambivalent. Japan likes it big…..and convenient.

Choose your market.

More Prawn “predictions” as global production grows…

Problem here is that this report sows division in the shrimp industry and downstream supply chain and has absolutely zero effect on end consumer markets….

Division between farmers, processors, exporters, importers, distributors, retail and foodservice.

Price is at all time low and now it is time for all players to turn towards servicing end consumers with quality and volume. Keep pushing product. It is already a perceived luxury good traded as a commodity. Healthy, sustainable – food safe and easy fast to prepare from frozen.

End consumers do not see price elasticity or react to changes in shrimp prices back upstream. If it ever gets too expensive they buy chicken. (in case of mega disease problems – but shrimp can last 24 months frozen).

Global trade side, and because shrimp is, unlike salmon, fully responsive to market demand with a full lifecycle under a year, all extra production is absorbed by a well developed and tested supply and demand model that had been 40 years in the making.

This is dispriting message from Rabobank for the shrimp industry.

Who is the message meant for?