magazine for sustainable sourcing and market intelligence18 Ecuador’s need and ambition to diversify26 thE Eu audit agEnda Asian countries under inspection28 india sourcing updateis it time for a uniﬁed approach towards shrimp marketing?#4 December 2018 china special food is heaven Powered by©2018 Stichting Seafood Trade Intelligence Portal (STIP). ShrimpTails is an STIP (www.seafood-tip.com) publication and has four issues per year.17 December 2018disclaimerLimitation 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. In the event a User and/or its organization or employer makes a business, trading and/or investment decision based on the information provided through ShrimpTails magazine and its Platform, this is the sole responsi-bility of the User and/or its organization or employer. STIP is not liable for damages of any kind, whether direct or indirect, arising out or related to the use of ShrimpTails magazine and its Platform, except to the extent the liability arises from the gross negligence or wilful misconduct of STIP. In no event shall the liability of STIP exceed the fees paid in the twelve months preceding the event causing damages.Editor-in-Chief Willem van der Pijl / STIP (NL)Editorial Assistant Sander Visch / STIP (NL) Editors Annette van Tits, Josanne Blokker & Ursula Beer / Editors Collective Amsterdam (NL)Contributors Jasmijn Venneman / STIP (NL), Adeyemi Ademiluyi / STIP (NL), Christos Rallis / STIP (NL), Nikki den Boon / 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), Shameem Ahmed / Solidaridad (BD) & Aquaconnect (IN)Graphic & Illustrative design Marnix de Klerk & Nina Mathijssen / Detour (NL)Website support Mathijs van de Venne / Everweb (NL)Support Bram Verkerke / Solidaridad (NL)Advertising and sales Jasmijn Venneman / STIP firstname.lastname@example.org t +31 6 40 81 33 61 silver membersShrimpTails and Seafood Trade Intelligence Portal are powered by Solidaridad Network. contents05 editorial 46 southern europe70 new friday ﬁsh dishshrimp on America’s Lent menu06 is it time for a uniﬁed approach towards shrimp marketing?09 introduction to sourcing updates42 spotlight onCatherine Lee May Ying 48 china special 50 a country of divided tastesunited in its love for shrimp60conquering chinaan Alibaba and Win-Chain perspective54 a map of the chinese warm water shrimp trade and market68 the us’s warmwater shrimp importsa deep dive in products and suppliers56 the chinese premium shrimp marketfood is heaven18 ecuador’s need and ambitionto diversify its markets26 the eu audit agenda Asian countries under inspection31 higher farm prices for domestic market shrimpmyth or reality?36 lenk brings aboard sven kamladea partnership 25 years in the making 44 introduction to market updates22 vietnam62 north-western europe66 united states28 india38 bangladesh34 indonesia12 ecuador14 ecuador breaks recordsbut not the Asian waycolumnsourcing updatesmarket updatesin-depth tailsdashboards04shrimptails | editorial 05shrimptails | editorialWow, I am proud. With this fourth edition, we wrap up the ﬁrst year of ShrimpTails. And what a year it has been. We found the right format to bring high-quality intelligence on the industry to a broad audience. In doing so, we have been able to deliver on our mission to create trans-parency and to change mindsets about the possible and impossible of a more sustainable and responsible industry.I’m proud of all our contributors. First and foremost, I’m proud of my team, who frowned when I suggested to start this magazine but have been doing a great job ever since. Our partners – Fresh Studio, Hatﬁeld, Jala, AquaConnect, Solidaridad Bangladesh and Andres – have been in-valuable to the quality of our content. Without the willingness of many of our ShrimpTails sources to share their passion and insights with us, we would not have been able to do this. I’m thankful to our partners at the Editors Collective Amsterdam who manage to transform our writ-ing into a pleasant read for all of you. I knew I could rely on our designer couple at Take a Detour to take ShrimpTails out of the box and deliver a one-of-its-kind B2B seafood magazine. Solidaridad Network has con-tinued to support us ﬁnancially to ensure our continuing growth. Last, but not least, without the support of our loyal members, who have been reading ShrimpTails and cheered us on many times, all of this would have been much less fun.I believe this ﬁnal edition of 2018 is the best one yet. It emphasizes the need to increase global shrimp consumption. George Chamberlain, president of the Global Aquaculture Alliance, will call you to action, to think about the possibility of a uniﬁed approach to marketing shrimp. As the cherry on the cake, we present you with a China special, taking a deep dive into Chinese eating habits, market channels and market players. On the market and sourcing update side, we will show you that, unfortunately, the market has not stabilized, prices at origin are again under pressure, and there is uncertainty about what will happen when the ﬁrst Indian and Vietnamese crops of 2019 come to the market in April. Some markets may have smaller inventories than last year, creat-ing more demand at the beginning of 2019 when supply is low. However, if farmers across Asia and South and Central America stock at full scale in February 2019, we will see another drop in prices from April onwards. You will read all about it next year!Willem van der PijlDirector Seafood Trade Intelligence Portaleditorial 06shrimptails | a uniﬁed approach towards shrimp marketingis it time for a unified approach towards shrimp marketing?shrimptails | a uniﬁed approach towards shrimp marketing 07gEorgE chambErlain, PrEsidEnt of thE global aquacul-turE alliancE, talks about why thE industry should now unitE to incrEasE global shrimP consumPtion.Of all the world’s food producers, aquaculturists are perhaps the most innovative and creative. To cope with the rapid changes with-in this young and dynamic sector, they must continuously adapt to new challenges including diseases, volatile prices, and ever-advancing technology. My aquaculture story began with an adolescent enchantment with the sea and dreams of aquacul-ture feeding the world. Almost miraculously, a series of mentors helped me at each stage in my career beginning with my educa-tion. During my graduate studies, I was fascinated to learn the under-lying principles of aquaculture and to discover the vast world of published scientiﬁc research. Then came a decade of corporate aquaculture, where frequent international travel opened my eyes to the enormous diversity of aquaculture practices and opened my heart to the camaraderie of its people around the world. About two decades ago, I joined some great partners and started a small shrimp farming compa-ny, where we have experienced the real-world ups and downs of business and have felt a personal connection with the brotherhood of global aquaculture producers. Around midway through my career, I decided that it was time to begin following the example of the many mentors that assisted me by volunteer-ing time with an aquaculture asso-ciation. I devoted seven years to the World Aqua-culture Society, an organization that fostered the research that was so much a part of my early career. Then, the need for an international aquaculture trade association to deal with mounting environmental attacks led me to assist in the establishment of the Global Aquaculture Alliance (GAA) over 20 years ago. To help the industry grow sustainably and reach its full potential, the GAA developed BAP certiﬁcation stan-dards for hatcheries, feed mills, farms and processing plants. VigilancE through discussions at goal As creative as aquaculturists can be, there are some issues that are simply too broad for a single farm, region or even nation to face alone. A diﬀerent approach is needed to identify and manage emerging issues. This requires the continual vigilance and involve-ment of stakeholders throughout the value chain, which – along with providing a platform for fruitful dialogues – is one of the key objec-tives of the GAA’s annual GOAL meeting. While the location of the annual meeting changes from year to year, the basic format is the same. It begins with presentations about the production status of the major aquaculture species and then moves into a discussion of issues and potential solutions. Over the years, the issues dis-cussed at GOAL have included mangrove conservation, an-ti-dumping, antibiotic residues, social issues, GMOs and manage-ment of various diseases includ-ing EMS, EHP, sea lice and ISA. Participants tend to be aligned on most issues, such as the need to manage new disease outbreaks. Occasionally, diﬀerent sectors of the value chain are at odds about the path forward. For example, when the issue of antibiotic residues ﬁrst emerged, a major shrimp producer questioned why buyers should be concerned about residues measuring in the parts per trillion, when there was no evidence that such low levels had any eﬀect on human health. Then a major buyer responded that even such low levels were against the law. Consequently, they simply would not purchase such contami-nated shrimp. Period! Such a clear and unambiguous message led to immediate alignment, and the dis-cussion moved from contention to consensus. At the 2018 GOAL meeting, which convened on 23-25 September in Guayaquil, Ecuador, a prominent international travel opened my eyes to the enormous diversity of aquaculture practices and opened my heart to the camaraderie of its people around the world”08topic of discussion was persistent low shrimp prices coupled with anticipated increases in produc-tion volume. Without an increase in consumption, prices are likely to drop below production costs, leading to industry contraction. Expressing their views through an audience-response app, 95% of the GOAL participants voted in favour of uniﬁed data collection and mar-keting for shrimp.a call to actionSuch was the energy around shrimp marketing at GOAL that 58 participants continued discus-sions in an informal roundtable, in which they pursued the need for a uniﬁed shrimp marketing programme. This is the magic of voluntary engagement – when diverse individuals are so moved by the need for change that they pull together as a team. It was this spirit that led to the formation of the GAA, and it is this same spirit that gives me optimism for the future of aquaculture. The group concluded that uniﬁed funding is needed for shrimp mar-keting and that the approach can either be voluntary or mandatory. The mandatory model would form a USDA marketing board, as with 21 other marketing boards for agri-cultural commodities. The advan-tages of a mandatory programme are no free riders (those who enjoy the beneﬁts of a collective eﬀort without contributing to the cost), protection from antitrust issues, and the ability to pub-lish production data in real time. However, such a USDA marketing board would be diﬃcult and time consuming to es-tablish. A volun-tary fund-raising approach would be much easier and faster than the mandatory approach, but it has big challenges with free riders and it is more vulnerable to anti-trust issues.organizing committEEOne of the conclusions of the GOAL meeting was that an Or-ganizing Committee is needed to further study the options for a uniﬁed shrimp marketing pro-gramme and to start developing plans in collaboration with the full value chain. Remarkably, 15 of the 58 participants actually volun-teered to serve on this committee and discussions will be arranged at upcoming seafood shows in San Diego, Boston and Brussels. It will also be a major topic of discussion at the GOAL meeting in Chennai, India on 21-24 October 2019. This is an inspiring example of indi-vidual aquaculture stakeholders recognizing an issue that can only be solved with a uniﬁed approach and then working together to address it. So there you have it, a little insight into my daily life as an aquacultur-ist. But who am I? I’m not a great researcher, nor a corporate lead-er, nor a big business owner. I’m just an average guy who got some breaks and discovered the poten-tial of aquaculture. The unsung heroes are the many who take the risks, innovate, and engage in collective initiatives that drive sus-tainable development. shrimptails | a uniﬁed approach towards shrimp marketing95% of the Goal partici-pants voted in favour of unified data collection and marketinG for shrimp”an orGanizinG committee is needed to further study the options for a unified shrimp marketinG proGramme”09shrimptails | introduction to sourcing updatesthis last Edition of ShrimpTailS for 2018 contains sourc-ing uPdatEs on ViEtnam, india, bangladEsh, indonEsia and Ecuador. They provide The mosT up-To-daTe infor-mation in thE form of a rEViEw of thE PrEVious months and an outlook for thE rEmaindEr of thE yEar as wEll as forEcasts for thE start of 2019. thEy includE dEtailEd rEgional information for Each country, as wEll as counTry-wide producTion and exporT Trends, company nEws and intErnational tradE issuEs, amongst othEr rElEVant toPics.on what will happen when many farmers in Asia who will have taken a break in January 2019, are ready to start stocking again for a new crop. Will they be encouraged to stock at full scale for the ﬁrst crop of the year after the challeng-es brought by 2018, or will they be more cautious and only stock their ponds at a moderate scale?vietnamVietnam’s exporters will need un-til the end January to ship harvests of the last crop of 2018, which farmers will complete by the end of December. Although farmers could technically already stock as early as January 2019, most stock-ing is expected to happen from early February onwards. Peak harvests of the ﬁrst crop of 2019 will then take place from April onwards. ShrimpTails does not expect a signiﬁcant recovery of export prices for Vietnam before February 2019, when exporters in Vietnam and importers in espe-cially Europe have cleared their low-priced inventories. Although we are hopeful that farm gate prices will recover during the ﬁrst quarter of 2019 – not least to en-courage farmers to start stocking introduction to sourcing updates farm gate price portal looking backlate harvests in india and vietnam Through 2018, Ecuador main-tained production as usual and continued to harvest more than in previous years. Similarly, Indone-sia brought a successful second crop to the market and already stocked for its third crop. India and Vietnam are oﬀ-cycle with the second crop of the year and have been having a big inﬂuence on the current market dynamic. Normally, September and October are the busiest months of the year in terms of the year’s second crop from India and Vietnam being harvested as well as EU and US buyers making their purchases for the Christmas season. This year, however, due to low prices, most farmers in India and Vietnam only stocked their second crop in the ﬁrst weeks of September and har-vested this crop from early Novem-ber onwards. Weather conditions in this period were unfavourable and farmers in India and Vietnam had to deal with heavy rains and storms hitting their shrimp ponds, causing disease outbreaks, slower growth and higher mortality rates. Unfortunately for the farmers, with harvests coming to the markets in November, and demand from the EU and other markets being slow, the recent positive price trend came to a halt and prices, especially for the smaller sizes, stabilized or even slightly decreased once more towards the end of the year. looking ahEad In general, the production scenario for the coming months will depend Willem van der PijlNext >
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