magazine for sustainable sourcing and market intelligence12 SOURCING UPDATE Ecuador70 SHRIMPTAILSpoll 64 UNDERSTANDING the shrimp consumer#9 April 2020“everybody needs everybody” in a shrimp uniﬁed marketing approachcovid-19causes great disruption in theshrimp industries Powered by©2020 Stichting Seafood Trade Intelligence Portal (STIP). ShrimpTails is an STIP (www.seafood-tip.com) publication.14th April 2020disclaimerLimitation of liability: STIP is not responsible for any errors in or accuracy and availability of the infor-mation provided through ShrimpTails magazine or its Platform. The information provided through ShrimpTails magazine or its Platform is for informational purposes only and not intended to serve as the sole source of information for User to make a business, trading or investment decision. 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In no event shall the liability of STIP exceed the fees paid in the twelve months preceding the event causing damages.Editor-in-Chief Sophia Balod / STIP (NL)Editorial Assistant Sander Visch / STIP (NL) Editors Annette van Tits, Josanne Blokker & Jo Hamilton-Bilijam / Editors Collective Amsterdam (NL)Contributors Jasmijn Venneman / STIP (NL), Adeyemi Ademiluyi / STIP (NL), Leo Voetman / STIP (NL), Alban Caratis / Fresh Studio (VN), Andres Fajardo (EC), John van Herwijnen / Open Europe (ES), Moin Uddin Ahmed / Solidaridad (BD), Liris Maduningtyas / Jala (ID), Mazhab Uddin / Consultant (BD) & Aquaconnect (IN) Graphic & Illustrative design Marnix de Klerk & Nina Mathijsen / Detour (NL)Website support Mathijs van de Venne / Tenpitch (NL)Support Bram Verkerke / Solidaridad (NL)Advertising and sales Hon Sophia Balod / STIP firstname.lastname@example.org t +31 6 38 270 166 silver membersgold membersShrimpTails and Seafood Trade Intelligence Portal are powered by Solidaridad Network. contents05 editorial 54 southern europe06 hungry for shrimp a call to action for a uniﬁed marketing approach08 introduction to sourcing updates20 producers’ perspectiveon the uniﬁed marketing approach28 recirculating aquaculture systems the MARES project in Vietnam56 a european perspective on the uniﬁed marketing approach 64 understanding the shrimp consumer 70 our ﬁrst pollthe feasibility of a united marketing approach24 buying artemiawhat to consider32 company proﬁles44 trade ﬂows of shrimpin 201948 shrimp-le and easy tips to make your shrimp stand out40 samskipstreamlines seafood supply46 introduction to market updates18 vietnam58 north-western europe62 united states30 india42 bangladesh36 indonesia12 ecuador14 “everybody needs everybody” in a shrimp uniﬁed marketing approach60 a new year, new chancesSeafood Sustainability Indexcolumnsourcing updatesmarket updatesin-depth tailsadvertorials38 spotlight onAllan Cooperinterviews04shrimptails | editorialcredit seafood nutricion partnership 05shrimptails | editorialI am writing this editorial from the comfort of my living room, as we enter week 3 of self-isolation in the Netherlands due to the COVID-19 crisis. I am lucky, I continue to remind myself, as all around the world, the situation is dire. Governments, shrimp farmers, processors and markets have been struggling to face the unprecedented impact of the pandemic that shook the entire industry. The ninth edition of ShrimpTails is dedicated to everyone in the shrimp industry trying desperately to keep their farms aﬂoat, maintain oper-ations in factories, and move their products. Many small and medium businesses are at risk, and the consequences not only for the economy, but more importantly for people’s livelihoods are very real. We have tirelessly gathered information from our sources to oﬀer you the best possible interpretation of what will happen and what has happened since 2020 started. It is diﬃcult to provide a projection seeing as we have not yet experienced a crisis of this scale before, however, we aim to provide you with the most accurate picture in our sourcing and market updates as of writing.In this time of uncertainty, the markets have been hit really hard, mak-ing the issue we are diving into in this edition both relevant and insight-ful. In this issue, we examine whether the uniﬁed marketing approach used for Hass avocado in the US can feasibly be applied to shrimp. As avocado and shrimp are obviously two diﬀerent products by nature, in order to understand the possibility of copying this model, we look at the issue from diﬀerent angles, whether they be from importers, producers or consumers. We also present the opportunities and challenges that go along with it, and have added bonus tips from marketing specialists on how to promote shrimp products. As we like trying new things, such as the “Shrimpless Shrimp: The Big Taste Test” in the previous issue, and we’d like to continue making you a part of our magazine, we’re launching our ﬁrst-ever ShrimpTails poll in this issue. You have heeded our call for help, and we thank you for the insights and opinions oﬀered.The shrimp industry will not be the same after this worldwide crisis. We have suﬀered losses as we tried earnestly to get by. But as I ﬁnish this letter dedicated to all of you, I sincerely hope that better days will come our way and that we will emerge from this adversity stronger, a little bit wiser, and more united than ever.Hon Sophia BalodEditor-in-Chief, ShrimpTailseditorial 06shrimptails | opening letterhungry for shrimpa call to action for a uniﬁed marketing approach JENNIFER BUSHMAN IS ONE OF THE INDUSTRY’S MOST PAS-SIONATE COMMUNICATION STRATEGISTS AND MARKETERS. FOR MORE THAN TWO DECADES, SHE HAS WORKED WITHIN THE SUSTAINABLE FISH AND SEAFOOD COMMUNITY, CREATING RE-LATIONSHIPS BETWEEN THE AQUACULTURE COMMUNITY AND NGOS SUCH AS THE MONTEREY BAY AQUARIUM SEAFOOD WATCH PROGRAMME. SHE PROMOTES “SEAGANISM” – EATING SUSTAIN-ABLY RAISED OR CAUGHT SEAFOOD TO HELP BRING BALANCE TO THE PLATE AND THE FUTURE OF FOOD.basically been rejected as too static for today’s changing ﬁsh and seafood landscape. It’s us as the shrimp industry that are too static. The results are taking shrimp down a path of mutually destruc-tive competition. Hyper-compe-tition among producers is what some would call a self-inﬂicted wound, but that doesn’t have to be an inevitable outcome. I’m urging you to take a chance and change the paradigm of competition. Today, I want to invite all of you to look around and not see your competition, but instead to dis-cover a community that can help spread the message about shrimp, a beautiful story that the world needs to know. As individuals, your voices simply aren’t loud enough. And as business oper-ators, we know that marketing too often gets pushed aside in the The world’s appetite for ﬁsh and shellﬁsh is growing as global de-mand increases at twice the rate of the world’s population. Con-sumers say they want to eat more ﬁsh and shellﬁsh, they want it at a reasonable price, and they want to be responsible stewards of the oceans. They also want the most delicious, easy to cook, aﬀordable, and sustainable ﬁsh and shellﬁsh in the market. You, who are raising shrimp, have developed systems that reduce car-bon, preserve important resources such as mangroves or rainforests, and bring jobs to economically disadvantaged communities. You are leading the way in developing solutions to one of the most critical problems of our time – how to feed a rapidly growing world while pro-tecting the future of our oceans. You have so much to be proud of and yet you’re caught in a race to the bottom. Despite your successes, you have failed in a crucial way. You have neglected your story. Make no mistake, the stories we tell about what we eat are as essen-tial to food as water and sunlight. Whether it’s a tale of happy cows, a Kentucky businessman with a recipe for fried chicken, or a sixth-generation farmer growing heirloom beans, we need stories to satisfy our appetite for belonging as much as we need food itself to sustain our bodies.Positioning – a much-needed shrimp marketing strategy – has I’M URGING YOU TO TAKE A CHANCE AND CHANGE THE PARADIGM OF COMPETITION”found that mil-lennials want to know more about how their food is produced. They’re looking for the behind-the-scenes story about the ingredients they buy and don’t hesitate to pay more for sustain-able brands. In terms of what the market wants, shrimp delivers on all fronts, and yet your product is on its way to becoming obsolete. As an industry, we need to focus on delivering, in the words of Simon Sinek, the why behind our eﬀorts and not just the what. We need a competitive strategy that brings shrimp producers, buyers, chefs, NGOs and distributors together. A plan that expresses your collab-orative eﬀort, while celebrating the diﬀerences that make each producer unique. It means delib-erately choosing a set of eﬀorts to deliver a fresh mix of energy and excitement around shrimp.Look at what the Pork Board did with “The Other White Meat.” The phrase “Got Milk?” was intro-duced in 1993, and almost 30 years later it’s still embedded in our cultural consciousness. Consider the success of the California Avo-cado Commission. Thanks to their eﬀorts, avocados now rank as one of the top-selling fruits in the US. In the 1990s, the average American ate about 0.68 kg of avocados; in 2018, this was 3.4 kg. Over 47.6 million kg of avocados are consumed on Super Bowl Sunday alone. Keep in mind that pork, milk, and avocados are all high-fat foods that were able to increase their market share at the height of the US’s low-fat mania. They succeeded in the face of obstacles far bigger than any our industry is fac-ing. We know that shrimp checks every box on the list of what most con-sumers want from their food. They only need to hear your story. It’s time for you to work together as an industry to tell it.quest for greater productivity, quality, and speed. Although those operational improvements may lead to short-term results, you are likely frustrated when those investments don’t translate into sustained growth and prices that equal the investment and eﬀort. These eﬀorts have converged over the course of the past several years. You and your competitors are charging down parallel tracks in a race that no one can win. In short, if you can’t sell shrimp at a price that makes sense, you can’t survive. But it’s not too late to change course. I’m proposing that we come to-gether to form a collaborative that operates diﬀerently than ﬁsh and seafood marketing councils of the past. One that hinges on getting your stories in front of a public hungry for shrimp as the growing number of shrimp farmers and farm eﬃciencies bring an increasing volume of shrimp to the market. And it’s a protein that aligns with the public’s values.The data is on our side. A recent Nielsen survey 07shrimptails | opening letterWE NEED A COMPETITIVE STRATEGY THAT BRINGS SHRIMP PRODUCERS, BUYERS, CHEFS, NGOS AND DISTRIBUTORS TOGETHER”08shrimptails | introduction to sourcing updatesIN OUR PREVIOUS EDITION, WE WERE STILL SPECULATING ON WHETHER THE INCREASED DEMAND THAT WE FORESAW FOR QUARTER ONE WAS STRONG ENOUGH TO SUSTAIN STABLE PRIC-ES IF ASIAN PRODUCERS WOULD EXPERIENCE A STRONG FIRST CROP. HOWEVER, ONLY THREE MONTHS LATER THIS IS NOT EVEN CLOSE TO THE PRESENT-DAY SCENARIO. THE COVID-19 OUT-BREAK IS HAVING A TREMENDOUS IMPACT ON THE INDUSTRY. WHILE IT IS NOT SURE HOW LONG IT WILL LAST, IT WILL ALMOST CERTAINLY HAVE AN IMMENSE IMPACT ON THE TOTAL PRODUC-TION OF 2020.LOOKING AHEAD INDIAIn February and March, farmers were preparing to stock their ponds, and initially everything seemed to move in the right direc-tion as the post-larvae supply was suﬃcient and the stocking was only slightly delayed due to cold weath-er circumstances in the Gujarat area. However, global outbreaks of the pandemic have reduced de-mand and slowed down shrimp im-ports from India, causing a direct drop in farm gate prices. Looking ahead, farmers in India will pre-sumably stock less than during a normal summer crop, as prices will not recover over the coming weeks. Should some markets recover in the third quarter, India could be able to supply quickly to these recovering markets, both from its inventory and the new harvest.VIETNAMWhile Vietnam has not been immune to the pandemic, it has acted quickly and has managed to contain the virus, building a strong defence against it. However, in the ﬁrst half of March 2020, the shrimp export volume of the main markets saw a year-on-year decline, notably introduction to sourcing updates LOOKING BACKConsidering shrimp export data of the main shrimp producers around the world, the combined output shows a positive growth of 6.45% in terms of export volume and a decline of only −1.16% in terms of export value of the group of pro-ducers presented in the table. As for most countries, we have complete export data over 2019, enabling us to see the performance of various countries. Export ﬁgures show negative growth for China (−24%), Thailand (−5%) and Argentina (−11%). Meanwhile, Ecuador shows the largest growth rate (26%), and India also demonstrates a positive growth (8%) despite production problems during quarters two and three. Over the ﬁrst two months of 2020, only China seemed to be experienc-ing the impact of the virus, as most sourcing countries proceeded as normal with harvests and stocking or preparations for the new season. The export ﬁgures only show Ec-uador exports being directed more toward the EU, but, despite the loss of its main market China, Ecuador grew in terms of exports. However, from March onwards the situation changed drastically as demand from the EU and US, both key markets, signiﬁcantly dropped due to the closure of restaurants. But sourcing countries, too, were brought under lockdown, making the management of factories and farms much more diﬃcult. All of the above has caused farm gate prices to decline rapidly, making farmers anxious about how to proceed with their next crop.Sander Visch09shrimptails | introduction to sourcing updatesthe EU with a drop of nearly 40%. The unpredictable situation due to COVID-19 will continue to cause diﬃculties in exports. Particular-ly, the sharp decrease in imports of the US and EU markets during lockdown and the strict super-vision of imports into China will strongly reduce Vietnam’s shrimp exports in the coming months. Al-together, a scenario of supply ex-ceeding demand will likely occur in the coming months, resulting in a continuous drop in prices.INDONESIAPrices continue to drop in Indo-nesia as its main markets US and China are severely aﬀected by the COVID-19 crisis. Prices for 40 count per kg have dropped almost $2/kg since February and the drop for 100 count per kg was an aver-age of $1/kg in the same period. Despite the looming national lockdown in the country, farmers have stocked abundantly, allowing them to harvest in time for the Eid al-Fitr celebrations in May. Even though farmers appear to be optimistic, they might be proven wrong and ﬁnd that prices are lower than expected.BANGLADESHIn Bangladesh, the new cultiva-tion season of black tiger shrimp (P. monodon) started in March. During the cultivation season for freshwater prawn (M. rosenber-gii), which ended in March, prices remained relatively stable for 20 count per kg and increased for 5 and 10 count per kg. By late March, prices were going down again as global market demand came to a hold as a result of the pandemic. Farmers may reduce their stocking if prices continue to decline due to low demand. This is indeed likely to happen, especially since Bangla-desh mainly sells its shrimp to the wholesale and food service indus-try in Europe, where restaurants remain closed for the time being.ECUADORChinese demand in Ecuador is said to have been completely absent due to the government-or-dered lockdown to contain the COVID-19 outbreak. Contrary to expectations, Ecuador’s February exports nevertheless show a 32% year-on-year increase, and a total export volume of 59,873 tonnes. This increase can be attributed to the successful moving of products originally destined for China to the EU and the US. By late March, however, most SME packers were closed, with employees at home out of fear of being contaminated and due to the curfew and partial lockdown of Guayaquil. Most larger packers were still produc-ing at that point but decreased production by −70%. The outlook for the coming months is highly uncertain. It will partly depend on how Ecuador ﬁnds a way out of this crisis. Even though large companies are eager to start up production in their plants as soon as possible, with Guayaquil at the centre of the outbreak it is more likely that the situation in Ecua-dor will ﬁrst deteriorate before it improves.YEAR-ON-YEAR EXPORT PERFORMANCE OF MAJOR SHRIMP PRODUCERSCOUNTRYVOLUME (TONNES)VOLUME (TONNES)VOLUME (%)VALUE ($ ’000)VALUE ($ ’000)VALUE (%)BANGLADESHCHINAINDIAINDONESIATHAILANDVIETNAMARGENTINAECUADOR35,701192,795615,691189,573143,106N/A185,440501,77020182019YEAY-ON-YEAR GROWTH-1.41-23.778.365.81-5.63N/A-10.7726.33-3.45-25.894.83-1.09-6.63-5.40 -19.0914.19370,7671,625,4274,898,8701,685,7891,387,2563,362,8621,052,1643,652,68435,198146,971667,141200,591135,591N/A165,475633,891384,0222,193,2324,673,1231,704,3101,485,7233,554,4031,300,4703,198,716sources: trademap, gacc, vasep, cna, bpsNext >
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