< Previousproduction, Ecuador may gain some market share. However, for now, the expectation is that pro-duction will continue to increase and prices will remain ﬂat or even go down. The success of a range of eﬀorts by the National Chamber of Aquaculture to increase Ecua-dor’s competitiveness, such as an expected trade agreement with South Korea and investments in the Sustainable Shrimp Partnership, remain to be seen.conclusionWith a calm ﬁrst half of 2019 behind us, and signals that de-mand may increase after summer, ShrimpTails expects that farmers are eagerly waiting for prices to increase during July and August and to stock their ponds again in September. Although the second crop is always smaller than the ﬁrst crop of the year, we do expect that this year’s second crop will turn out bigger than last year’s second crop. The impact of this on prices remains to be seen. The situation in Vietnam is reason to worry and we can expect a price drop in September, and another drop by the end of the year, per-haps even to levels lower than we have seen in 2018.farm gate price portalShrimp prices continuously ﬂuctuate all over the world. The Seafood Trade Intelligence Portal ensures that you always have the latest prices in Bangladesh, Ec-uador, India, Indonesia, Thailand and Vietnam at hand. In our week-ly updates, we provide you with detailed context on these price developments. For more informa-tion, sign up for a free trial of the price portal and read our sourcing updates for even more in-depth information.GET YOUR ONE-MONTH TRIAL NOW!a weekly shrimp farm gate price update?andhra pradeshmekong deltaca mauguayaseast javakhulnaPEAk sEAsonlow sEAsonoff-sEAsonjanuaryjanuarymarchmarchjunejuneseptemBerseptemBernovemBernovemBerfeBruaryfeBruarymaymayaugustaugustaprilapriljulyjulyoctoBeroctoBerdecemBerdecemBerpacific white shrimpl. vAnnAmEiBlack tiger shrimpP. monodonrEGulAr hArvEstinG cAlEndEr*10shrimptails | introduction to sourcing updates* this hArvEstinG PAttErn is bAsEd on thE historicAl PAttErn of PrEvious YEArs; this YEAr’s hArvEstinG PAttErn mAY diffEr.sourcing updateecuadorin the previous edition of ShrimpTailS, we reported that there was some insecurity on how the situation in ec-uador would develop and that the positive viBe around ecuador had lost some of its Brilliance. looking at the first quarter, however, ecuador has continued to ex-cel, and never ceases to amaze. with record-Breaking production and exports, the country is expected to in-crease its shrimp exports By around 15% in 2019 to just past 600,000 tonnes and, if this trend continues, she may well reach more than 700,000 tonnes By the end of this year. the counter side, however, is that Both farm gate and export prices are still at an extremely low level and are not expected to rise. in fact, they could potentially decrease even more in the next few months. the Big ques-tion remains: is this development here to stay? looking BackLooking at the statistics of the ﬁrst quarter of 2019, we can easily recognize the increase in overall exports in comparison to the same period in May 2018. In the period January to May 2018, Ecuador exported 204,341 tonnes with a value of $1.3bn. In 2019, in the same period, Ecuador’s export volume increased by almost 23%, to a total of 251,611 tonnes and a value of $1.45bn. Looking at the export markets for January to April 2019, little change can be seen. Only Asia increased its share from 61% to 67%, mainly due to the con-tinued increase in direct exports to China. Both the US and Europe show a slight decline and now only represent 13% and 18% of the export market respectively. An interesting trend comparing year-to-date data between the US and Europe is that, while Europe shows an 11% decline in terms of the value of total exports in comparison to the same period in 2018, the US shows only 1% decline in total value. This leads us to conclude that espe-cially on the main European export markets for Ecuador – Spain, France and Italy – the price that importers are willing to pay for Ecuadorian prod-ucts has dropped drastically. This is conﬁrmed by the data presented in the southern European market update. Not only in Europe, but also in general, the low price level is a cause for concern. The average export price per kg in 2018 was $6.32. By April 2019, this price was already down to $5.73/kg. The STIP farm gate price portal shows that the biggest price drop can be found on the 30 and 40 head-on shell-on (HOSO) count per kg size, where from the beginning of this year until May the price has dropped by 50 cents from $5.10/kg in January to $4.60/kg in May. The steeper decline in price for larger sizes can be explained by the fact that these sizes are most in demand by Chinese customers, causing the majority of farmers to target these sizes, and resulting in high availability and higher competition on these sizes. The 50, 60 and 70 HOSO count per kg have shown a more stable trend with a variation of approximately 5-10 cents increase or decline in the past months. Sources at large Ecuadorian importers mention that while prices are low, companies are still making money. The continuous record in production and export volumes leaves many asking if this is a permanent increase and/or whether there is a limit to the growth of Ecuador. The general impression of our local sources, both at the level of the top four ex-porters as well as on the small and medium-sized industry level, is that this is a permanent trend of growth in production. As described in the Ecua-dor special of December 2018, the driving force behind the production records is the increasing optimization of production. Adapting automated feeders, use of aeration, and specialized feeds all make it possible to produce with higher eﬃ-ciency. The quality of larvae, which has drastically increased over the years, also adds to better growth rates and higher production output. Another factor is the increase in production hect-ares that are structurally being added. With the shrimp industry seen as a very lucrative business and solid investment, an increasing number of new Ecuadorian farmers, seemingly not bothered by low global prices, have started to produce shrimp and are selling their product to the bigger companies. Adding to this, the number one ex-porter, Santa Priscila, told ShrimpTails that they plan to add an additional 2000 ha of ponds in the coming three years. Last but not least, in the course of the past months, various sources have mentioned the increase in production to have been largely inﬂuenced by the increase in water temperature caused by El Niño. Our ShrimpTails sources, however, mention that while of course the climate helps, its inﬂuence is not that great and it is therefore not the main reason for the increased production output in the past months. Looking forward, the general impression on price development is that prices will most likely not see a big increase any time soon and will probably be ﬂat, or even decrease. Some Shrimp-Tails sources do express the hope that the stable oﬀer of the Ecuadorian product might lead to a slight price increase in the coming months, under the inﬂuence of the current problems in India with decreases, lower stocking of farmers and delayed harvests. With prices structurally low and production structurally high, the in-dustry is continuously addressing strategies to increase the value of Ecuadorian shrimp. Jose Antonio Camposano, president of the CNA, in an interview with magazine Revista Lideres, mentions amongst other strategies: (i) the Sustainable Shrimp Partnership (SSP) adopting a blockchain approach and (ii) a trade agreement with South Korea, which should increase trade with a country that appreciates the high-quality Ecuadorian shrimp.12shrimptails | ecuador sourcing updatelooking aheadJasmijn VennemanThe Sustainable Shrimp Partner-ship (SSP) joined the IBM Food Trust ecosystem on 6 May to improve the visibility of its shrimp supply chain, identify stakeholders and improve trace-ability of operations from SSP certiﬁed shrimp farms to the end consumer. IBM Food Trust is a platform that speciﬁcally caters to global food supply chains, leveraging blockchain technology to provide visibility and foster accountability between key stakeholders through an immutable record of food system data. According to Pamela Nath, director at SSP, the goal of the consortium is to ensure that supermarkets and restaurants are selling premium quality shrimp, while consumers are assured insight into the crustaceans’ farming conditions by scanning the QR codes embed-ded on the shrimp packaging. A new deepwater port is being developed in Posorja, approximately 85 km south-west of Guayaquil, Ecua-dor. It has the ambition of becoming one of the most important ports on the South American west coast. The construction of the harbour began in July 2017 and is now entering its ﬁnal stage with the expectation to be operational in August this year. Where deep-sea reefers coming through the Panama Canal were not able to reach the Guayaquil port in the past years, with the new Posorja harbour, they will now be able to make it to Ecuador again. This facilitates added export capacity, supporting even further growth of Ecuador-ian shrimp export volumes.industry newsssp/ibm food trust new deepwater harbour in posorja, ecuador PricE of PAcific whitE shrimP in EcuAdor8.006.004.002.000.001 nov 20181 mar 20191 may 2019$/kgcount3040506070 13shrimptails | ecuador sourcing update1 jan 201914shrimptails | a purchase guidea purchase guide to the ecuadorian shrimp industryout now!$79,-suppliers of Paciﬁc white shrimp (L. vannamei). But, with growth comes change, and changes must be made to the shrimp farming sector, in particular concerning the set-up of Ecuador’s processing plants and exporters, in order for it to reach its full potential. The Purchase Guide to the Ecuadorian Shrimp Industry provides you with the most up-to-date overview of the Ecuadorian shrimp industry. In chapter 1, we describe the latest status of the industry as a whole. Chapters 2 and 3 will give you de-tailed company proﬁles of estab-lished as well as up-and-coming processors and exporters who may well become your future partners and help you expand your business in Ecuador.Of course, every guide has its limits in terms of the level of insight and detail that it can provide. So, if you ﬁnd yourself in need of any further intelligence or simply want to share your passion for the Ecua-dorian shrimp industry, contact me at firstname.lastname@example.org your copy of ‘a purchase guide to the ecuadorian shrimp industry’ now at $79 and receive: - The most up-to-date and must- have information on the status of Ecuador’s shrimp industry.- Detailed proﬁles of Ecuador’s shrimp exporters, including: - Extensive proﬁles of Ecuador’s top 4 shrimp exporters. - 11 proﬁles of Ecuadorian ex- porters that are actively looking to expand their markets. - 18 mini proﬁles of other Ecuadorian shrimp exporters. The Ecuadorian shrimp farmers are proud of their robust shrimp sector, going strong for over 40 years and driven by people with years of experience in shrimp farming dedicated to delivering a high-quality product. This dedication has been fruitful, with the shrimp industry now even surpassing bananas as the country’s top export product after petrol. According to the Central Bank of Ecuador, shrimp exports in 2018 reached a total revenue of $3.2bn, while banana exports were valued at $3.1bn. Over the coming years, Ecuador is expected to further grow its shrimp sector and will consolidate its po-sition as one of the world’s largest business opportunities and 33 exporterprofiles at hand15shrimptails | a purchase guidei first got to know the shrimp industry Back in 2015, when i travelled to guayaquil in ecuador to source or-ganic shrimp for anova seafood. it was an experience i still rememBer to this day. the Beautiful, vast land-scapes were covered in what appeared to Be endless extensive shrimp ponds. the size of the sector amazed me. something in particular i recognized Back then, and still see to this day, is the proud attitude that is reflected in the entire shrimp sector, Both at farmer and exporter level. for me, as a purchase manager, it was clear that ecuador had something good to offer: high-quality products and reliaBle exporters.Jasmijn Vennemansourcing updatevietnamFresh Studiomost farmers in vietnam stocked their ponds for the first crop of the year. this is contrary to what happened in india, where a significant numBer of farmers decid-ed not to do this. with the harvests now in full swing, prices in vietnam have seen a rapid decline since may. we expect prices to go down even further until the end of june when the harvesting season should come to an end. prices may staBilize in july and august when there will Be less shrimp availaBle. as for septemBer, when vietnam’s farmers will harvest their next crop, it is dif-ficult to predict what will happen with the prices. one possiBility is that, with current price levels, farmers de-cide not to stock at all or to only partially stock. if this were to happen, the volume of the second crop will Be lower than we would normally expect. looking BackAt the time of publication, harvesting of the ﬁrst crop of Paciﬁc white shrimp (L. vannamei) is still in full swing. This is unusual for Vietnam. In the last edition of ShrimpTails we explained that the ﬁrst crop of the year is normally stocked around February and March. But this year, stocking was delayed by many farmers who were disillusioned with the outcome of 2018 and the mild prices observed in the ﬁrst months of 2019. By the end of March, many farmers had to proceed with stocking in order to place a crop before the rainy season and secure some ﬁnancial revenues. Because of this, raw materials have surged in vol-ume from the end of May until now, which, com-bined with an astonishing production increase from 41,000 to 46,000 tonnes in the ﬁrst quarter (up 9% according to data from the Vietnam Association of Seafood Exporters and Producers (VASEP)), has caused the farm gate prices to fall dramatically. In early June, the prices oﬀered to farmers for Paciﬁc white shrimp were nearly identical to those oﬀered at the same time last year when prices hit rock bottom. Towards the end of June, prices went down even further and reached a new low. We expected demand to return after Easter once buyers in the US and EU markets had cleared their inventories, but market demand remains low according to some of our sources in the fac-tories of Cà Mau. With large volumes of shrimp in storage and low demand, Vietnamese suppliers are in a position to oﬀer attractive prices to customers. Currently, the 26-30 count per kg Paciﬁc white shrimp peeled and deveined (PD) cut deveined (80% net weight frozen count) is oﬀered at $6.25/kg (FOB Port of Ho Chi Minh), which is identical to the price oﬀered last year during the same period. While this year’s Paciﬁc white shrimp season seems to take the same path as last year’s, 2019 has so far seen an upturn for farmers and ex-porters of black tiger shrimp (P. monodon). In 2019, the prices of black tiger shrimp recorded on our price portal were roughly 1.7 times higher than at the same time last year. Hence, prices of black tiger shrimp have experienced record highs throughout the main harvesting season – which ends in July – while Paciﬁc white shrimp farmers continue to struggle with challenging prices for the second year in a row.We expect prices of Paciﬁc white shrimp to continue their downward trend until the end of June when the last shrimp of the ﬁrst crop are harvested. There is a chance that farm gate pric-es will reach a new record low in the last week of June. While prices will stabilize somewhat in the months from now until August, we don’t expect a signiﬁcant price recovery before September. Being in between the ﬁrst and second crop of the year, plenty of shrimp will continue to be oﬀered on the market in these months. This generally changes when buyers start to place orders for the Christmas period.Shrimp harvested over this summer (July and August) should be particularly small in size, as the current prices – associated with the peak of the rainy season and disease outbreaks – may compel farmers to shorten their production plans. We can also normally assume that prices for large-sized shrimp will stabilize by the end of July but, taking 2018 as a reference, this is unlikely to happen in 2019. As such, farmers are concerned about how the second half of 2019 will unfold. Many may choose to partially stock instead of delaying like they did for the ﬁrst crop. In such a scenario, the output of shrimp from Vietnam would decrease in August and September when demand for raw materials from processors is normally high. This, in turn, could trigger a slight price recovery. However, like last year, we will need to keep an eye on India and Ecuador – which supply huge volumes of shrimp at cheaper prices, in turn diverting demand away from Vietnam – to understand the outcome of the summer season in Vietnam.16shrimptails | vietnam sourcing updatelooking aheadUndercurrent News reported that a US congressman is calling on the US Customs and Border Protec-tion (CBP) to investigate allegations that Minh Phu is possibly evading anti-dumping duties on shrimp from India by selling Indian shrimp as Vietnamese products. In 2017, while Vietnam exported $3.55bn of shrimp, a total of $426m of shrimp was imported from India to Vietnam, of which Minh Phu alone imported $141m (23%). The allegation is that a certain proportion of the shrimp sold in the US by Minh Phu and its US sub-sidiary MSeafooddo not come from Vietnamese farms but from India. A ShrimpTails source who wished to remain anonymous told us that despite the extra logis-tical cost, Indian shrimp imported to Vietnam remains cheaper in many cases than shrimp purchased from a local farm.State-owned company Electricity Vietnam (EVN), the sole power distributor in the country, announced an increase in its electricity prices by 8.36% as of 20 March 2019. This decision has received a mixed response in the country, as this means that electricity bills have risen signiﬁcantly for retail from $0.0749 to $0.0803 per kWh. The impact on shrimp farming and processing will be signiﬁcant as electricity represents about 10% of the production cost for the farmer and about 60% of the production cost for the processor. This rapid increase in electricity costs will therefore further the competitiveness gap between Vietnam and other producing countries in the immediate term, unless loans are provided to companies to upgrade their equipment and limit electricity consumption as a result. company newsdomestic newsfarmers and processors to suﬀer from increase electricity billsPricE of PAcific whitE shrimP in viEtnAm (mEkonG dEltA)8.006.004.002.000.001 sept 20181 nov 20181 jan 20191 may 20191 mar 2019$/kgcount3060100 17shrimptails | vietnam sourcing updateArticle realized with the collaboration of Patrick Sorgeloos (Artemia Reference Center, Ghent University), Philippe Léger (CEO, INVE Aquaculture), Geert Rombaut (R&D Manager, INVE Aquacul-ture), Eddy Naessens (Product Manager Shrimp Hatcheries, INVE Aquaculture), Alessandro Moretti (Product Manager Fish Hatcheries & Artemia, INVE Aquaculture)18shrimptails | the artemia paradox one of the most animated discussions in the gloBal aquaculture community undouBtedly remains the in-dustry’s dependence on Brine shrimp artemia for lar-val rearing. paradoxically enough, one can state that the very thing that has made large-scale aquaculture possiBle, if not well managed, might also Be one of the greatest impediments for further growth of our indus-try in the future.the artemia paradox vital resource or bottleneck?historic importance of artemiaHistorically, the major diﬀerence between some species in aquacul-ture and terrestrial animal farming has always been the fact that the larvae of shrimp and most marine species have to be oﬀered a live food, whereas chicken and cattle accept inert diets throughout their lifecycle. And because culturing of the zooplankton (the natural food of ﬁsh and shrimp larvae) was either commercially unfeasible or technically hard to implement, development of the artemia marketThe ﬁrst true commercial supply of Artemia cysts came from salt ponds in the San Francisco Bay area (California, US) and later from the Great Salt Lake (Utah, US). The latter one remains an example of a sustainably managed and harvested natural resource of quality cysts up to this day. Very soon, however, the increasing demand exceeded the yearly har-vest of approximately 30-50 met-ric tonnes. From the late sixties on, there was an aggravating cyst shortage, and the hatching quality of the available cysts became less and less reliable. It was only after the FAO’s Technical Conference on Aquaculture in 1976 in Kyo-to that the situation started to change for the better. the eﬀorts of early aquaculture pioneers were hampered by inade-quate larval food supplies.In a series of articles published on the INVE Aquaculture website, we will gather the thoughts of some of the leading Artemia experts and pioneers looking at the success and ad-equacy of past, present and future Artemia feeding strategies in ﬁsh and shrimp hatcheries worldwide. 19shrimptails | the artemia paradoxThe beginning of a solution to this problem came from the discovery by Seale (1933) in the US and Rollef-sen (1939) in Norway, that new-born ﬁsh larvae could be fed with the 0.4 mm nauplius larva of brine shrimp Artemia. A small crustacean species that thrives in salty, desert-like con-ditions where few micro algae and bacteria survive. This discovery was particularly interesting because of the unique reproductive system of this fascinating crustacean species.For the species to survive in its typically harsh environment, Artemia have developed the ability to produce “winter eggs”. These “eggs” are in fact cysts containing embryos that enter a period of dormancy. This is an intriguing bi-ological event when an organism is in a deep sleep, stops metabolizing and only wakes up when conditions are favourable. This means that these incapsulated inactive embry-os can be stored for a long time and only have to be incubated under the right conditions to produce free-swimming nauplii that are very well accepted as a food source for ﬁsh and shrimp larvae. All of a sud-den aquaculture had theoretical access to a source of live feed that could be produced on demand.”Patrick Sorgeloos (Founder and former Director of the Artemia Reference Center, Ghent University)Mandated by the FAO to do so and based on his earlier work at the University of Ghent, at that time Belgian biologist and researcher Patrick Sorgeloos led a number of initiatives from 1978 on to turn the limited global Artemia supply into a future-proof resource for profes-sional aquaculture. This work later resulted in the foundation of the Artemia Ref-erence Center and of INVE Aquaculture. The work done by Patrick Sorge-loos and his team focused on ﬁnding solutions for the major impedi-ments to the further development of Artemia use in aquaculture: - The need to explore new natural sources of Artemia in Europe, Asia, North and South America, and Australia and the introduc- tion of brine shrimp in other suitable habitats such as north- east Brazil, Vietnam and China. - Improvement of the cyst quality by developing new harvesting techniques such as harvesting at the water surface instead of at the lake shores where dirt par ticles build up between the cysts and the repeated hydration-dehy dration cycles aﬀect the hatching quality and energetic content of the embryos.- Improvement in terms of yield reliability by developing standard Artemia hatching protocols that establish the optimal conditions for the nauplii to hatch success- fully and simultaneously. - Classiﬁcation and ﬁngerprinting of the diﬀerences in size, hatching performance, growth rate, nutri- tional value, etc., of Artemia cysts coming from diﬀerent strains, locations and even harvests. 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