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?

Unilever to insist suppliers pay ‘living wage’ – value added prawn prices would probably double as labor intensive…

Interesting. Unilever has a tendency to bring trends to wider markets. Next retailers look at uptake and aspirational moves.

Imagine a living wage for all those shrimp de-headers, peelers and packers currently in developing countries. Makes the case more and more to go robotic….is the industry gearing up for this or not?

Where, which countries, which companies.