magazine for sustainable sourcing and market intelligence67 antibioticsASC interview48 peruSourcing update 71 unpackingDutch consumer habits production: high targets realistic expectations#1 March 2018 Powered by©2018 Stichting Seafood Trade Intelligence Portal (STIP). ShrimpTails is an STIP (www.seafood-tip.com) publication and has four issues per year.19 March 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 & Jo Hamilton-Bilijam / Editors Collective Amsterdam (NL)Contributors Jasmijn Venneman / STIP (NL), Adeyemi Ademiluyi / STIP (NL), Michelle Homans / STIP (NL), Nikki den Boon / STIP (NL), Alban Caratis / Fresh Studio (VN), Lida Soeda Pet / Hatﬁeld International (ID), John van Herwijnen / Open Europe (ES), Teresa Kus / Consultant (PL), Anil Sasidharan / Jass Ventures (IN) Mazhab Uddin / Consultant (BD), Shameem Ahmed / Solidaridad (BD)Graphic design Marnix de Klerk / Detour (NL)Website support Mathijs van de Venne / Everweb (NL)Support Bram Verkerke / Solidaridad (NL)Advertising and sales Jasmijn Venneman / STIP email@example.com t +31 6 40 81 33 61 Kari-Anne Sandness / STIP firstname.lastname@example.org silver membersShrimpTails and Seafood Trade Intelligence Portal are powered by Solidaridad Network. contents05 editorial 06 shrimpin’ ain’t easy the reality of being a shrimp exporter in India08 introduction to sourcing updates15 responsible aquaculturethrough ASC certiﬁcation52 inve aquaculturebenchmark’s advanced nutrition division71 unpackingDutch consumer habits75 don’t cry for me shrimpArgentina’s second most valuable export product30 bangladeshproduction volumes versusprocessing capacity38 healthy shrimpa perspective ondevelopments in the Thai shrimp industry67 antibioticsinterview ASC’s head of programme assurance77 spotlight onSolea International41 how myanmar is strivingto export to the eu51 coaching exporters for business with the euCBI and Atisa54 introduction to market updates10 vietnam58 southern europe62 north-western europe18 india26 bangladesh34 indonesia44 ecuador48 peru22 uncertain times for eu importersantibiotics in imported shrimpcolumnsourcing updatesmarket updatesadvertorialsin-depth tailsinterviews04shrimptails Lead farmer of Solidaridad Shrimp Farmer Supp0rt Programme in south-west Bangladesh training a farmer group in good aquaculture practice.04shrimptails | editorial 05shrimptails | editorialWhen introducing myself to people in the shrimp industry, I always make the joke that I know nothing about shrimp. As an anthropologist, I only know about people; the people producing, selling and buying shrimp. People working in the shrimp industry – you – fascinate me. Shrimp is such a risky business and most of you are in it knee-deep. Your passion for the profession has been contagious. I started my ca-reer in shrimp about eight years ago in Chennai, India, and since then I have travelled the world, going from India to Bangladesh to Myanmar to Ecuador, working with shrimp farmers, exporters and importers towards a more sustainable industry. I have started to understand the nitty- gritty of the complicated industry you work in. Now, as Editor-in-Chief of ShrimpTails, I see it as my task to give back and provide you with intelligence to support you in making nifty and responsible decisions.ShrimpTails is a must-have magazine, helping you to remain up-to-date with the latest developments and trends in shrimp production, export, import and consumption. We provide you with standardized Sourcing and Market Updates on the one hand and a mixture of interviews, columns and “In-depth Tails” on the other. With our global Seafood Trade Intelligence Portal (STIP) network and our partners at Solidaridad Network, ShrimpTails covers shrimp news at a global level. Although Shrimpin’ Ain’t Easy, as Aditya Dash, shrimp exporter in India, states in his column, the world’s production of Paciﬁc white shrimp is expected to grow further in 2018. This ﬁrst edition of ShrimpTails revolves around the ambitious shrimp production targets across the globe, which may well turn out to be unrealistic. India, Vietnam and Indo-nesia in particular have expressed production targets that require signif-icant investments. But even if some of the countries only realize part of their ambition, the availability of shrimp on the market will undoubtedly increase. Subscribe and be sure not to miss the next edition of ShrimpTails. I am looking forward to this journey and to having the opportunity to exchange ShrimpTails with you.Willem van der PijlDirector Seafood Trade Intelligence Portal editorial 06shrimptails | shrimpin’ ain’t easyshrimpin’ ain’t easy the reality of being a shrimp exporter in indiaIn the middle: Aditya Dash in one of his factories.Aditya Dash 07shrimptails | shrimpin’ ain’t easyaditya dash, managing director and owner of family owned ram’s assorted cold storage limited, shares his story, giving us an insight into his daily life as a young shrimp exporter in india.Indian farm size is 1-5 acres, which puts us at a great disadvantage compared to countries such as Ecuador where the farms are much bigger. To make matters more complicated, if a factory is delisted by the EU because its container was contaminated with antibiotics and thus rejected, it is currently uncertain whether the factory will be relisted. It then does not have any incentive to improve, or even to analyse what went wrong. bringing about changeOn a personal level, my biggest challenge has been educating my staﬀ and bringing about a change in mindset. Aquaculture has the power to transform coastal com-munities. By promoting economic development for farmers and more participation of women in the workforce, this is one massive poverty eradicating machine. Thinking back to that 14-year old seafood seller who is now the perfect candidate to formulate and implement new policies in my company, I feel like I have indeed contributed to providing young dreamers of India with a platform where they can bloom into bright young men and women. At the end of the day, success doesn’t depend on fancy machines; it depends on people. In 2010, I met a 14-year old boy selling seafood in the eastern Indi-an state Odisha. He was poor and had not completed his education. My company employed him when he turned 18 and he is now a pro-duction supervisor. In the mean-time, he has obtained a high school equivalent graduation degree and is pursuing an undergraduate degree. I had always wanted to contribute to the economic development of India in general and the region of Odisha in particular. Being fortu-nate enough to receive a global education, I felt a duty to contrib-ute to my state and country. With great power comes great responsi-bility. The freedom movement of India wouldn’t have been possible if it weren’t for young men and women who gave up lucrative career opportunities outside and within India. I wanted to do the same and so I joined the family business in 2006. family business My father started this business 40 years ago by purchasing two trawl-ers and nowadays we are a vertical- ly integrated frozen shrimp com-pany with our own hatchery, farms, feed distribution and processing units – and thus control the entire supply chain. This didn’t happen overnight.After having suﬀered losses in the 90s due to the outbreak of the white spot virus in black tiger shrimp farms, in 2006 we paid oﬀ all our debts and our factories were processing shrimp for other merchant exporters. When our anchor tenant for the processing units built their own factory in 2008, I took the plunge into the seafood industry. plunge into seafood industryThis plunge would turn out to be a baptism. I was blessed with increased supply from the state Andhra Pradesh and excess demand from overseas which allowed me to restart our shrimp hatchery, shrimp farms and shrimp feed distribution business and also to modernize my factory to meet BRC, BAP and ASC standards. challengesThe biggest challenge facing the Indian shrimp industry right now is making our supply chain and traceability systems more robust, which I also consider to be my personal challenge. The average With great poWer comes great responsibility”at the end of the day, success doesn’t depend on fancy machines; it depends on people.” 08shrimptails | sourcing introductionthis first edition of ShrimpTailS contains sourcing updates for india, indonesia, vietnam, bangladesh and ecuador. these updates will be a regular feature of every ShrimpTailS edition and will provide you with the most up-to-date information in the form of a re-view of the previous months and an outlook for the coming months. they will include news on production trends, export trends, company news and any other relevant information on topics such as national poli-tics and international trade. each edition will feature five standard sourcing updates plus one extra update for a country of our choice, which will change in each new edition of ShrimpTailS. the featured country will usually be a source that is perhaps not as important in terms of volume as those that will return in each mag-azine, but a country that we deem to be “one to watch”. in this first edition of ShrimpTailS, that country is peru. development of super-intensive shrimp farms, in India it has been driven by expanding the land under Paciﬁc white shrimp culture. In Thailand, production continues to recover from the Early Mortal-ity Syndrome (EMS) outbreak by improved pond management of existing farms.production outlook 20182018 got oﬀ to a slow start, but after leaving the typically quiet festive periods of Christmas and the Chinese New Year behind, and the harvesting seasons in Asian countries almost at their peak – typically around April and May – trading activities are expected to pick up for most countries of origin.If last year’s drivers of growth – namely Ecuador, Vietnam and India – can, in 2018, achieve only a small part of their long-term production targets (see infograph-ic), the market will undoubtedly experience a steady increase in the production volumes of Paciﬁc white shrimp. Particularly in Asia, this volume growth is likely to be of increasingly smaller sizes of shrimp (50-60 count per kg if not more), and at a lower price since market introduction to sourcing updates Taking a look at the detailed Sourc-ing Updates that follow, which cover production and exports in 2017 as well as forecasts for the next three months, we can make some general observations about the state of shrimp production and exports in these ﬁve key countries – drawing also on our featured country – over the course of the last year and what we expect to see in 2018. In this global review, we will also make reference to China and Thailand, two important shrimp origins, although we do not have speciﬁc sourcing updates about the industry in these nations in this particular edition of ShrimpTails.production review 2017China and Indonesia have been struggling with their production volumes of Paciﬁc white shrimp (L. vannamei) due to disease and weather conditions. India, Viet-nam, Ecuador and Thailand, on the other hand, have experienced further expansion and growth (see infographic). While Vietnam’s growth has mainly been driven by the more professional manage-ment of existing ponds and the Willem van der Pijl 09shrimptails | sourcing introductiondemand for these cheaper products is growing at the fastest pace. China is expected to absorb a consider-able share of the available product. This is due to, on one hand, lower production ﬁgures for shrimp in China itself, and, on the other hand, to China’s rapidly growing middle class. However, if China cannot ab-sorb all of the extra volumes being produced by these growth drivers, prices are expected to show a down-ward trend in 2018 and subsequent years. This leads to an important question: how far can prices drop before farmers experience diﬃcul-ties as a result of decreasing proﬁt margins?export outlook 2018While raw material availability will most likely improve, the trade landscape is quite uncertain. Most industry insiders agree that China will continue to expand its market inﬂuence and will have a consid-erable impact on price setting and production targets around the world.For the EU and the US, things are less certain. The EU is currently dealing with various issues, such as the use of antibiotics in India, A-Form (Certiﬁcate of Origin) fraud in Vietnam and Bangladesh, and the formalization of a free trade agreement between the EU and Vietnam. Following a series of prior enquiries, the EU has another audit planned in India which will further examine the use of anti-biotics in shrimp farming. If the Indian authorities are unable to meet EU requirements, there might be additional measures for shrimp exports from India into the EU. EU buyers are therefore hesitant to buy and instead take a step-by-step approach until there is more clarity about such measures. This is only expected in quarter 3 of 2018. In Vietnam, rumours continue to exist regarding EU investigations into A-Form fraud. With large import volumes of Vietnamese processors in the Mekong Delta, it is rumoured that these exporters in fact export Indian products to Europe as being of Vietnamese origin. If this is found to be true, especially when the Free Trade Agreement between the EU and Vietnam comes into eﬀect in the course of 2018, this would be a sen-sitive case. Moreover, such fraud would pose a con siderable ﬁnancial risk for EU importers. Meanwhile, the US Congress needs to decide on whether it will put shrimp under the US Department of Agriculture’s Seafood Importation Monitoring Program (SIMP). If this is the case, exporters of shrimp to the US will need to comply with more stringent requirements on the traceability of their products. Although import-ers are already preparing to meet these requirements, the Congress decision may slow down shrimp imports into the US considerably in the ﬁrst period after the decision comes into eﬀect. As the decision forms part of a larger Bill to be ac-cepted by Congress, it is diﬃcult to say when this will happen under the current political climate in the US. * Estimations about the actual production of China range widely. There is no considerable source. It is clear that production in recent years has decreased due to weather conditions and disease problems. india550,000 - 1,000,000 (2020)peru23,000 - n/achina600,000///1,700,000*- n/athailand300,000 - n/aecuador450,000 - 470.000 (2019)vietnam427,000 - 700,000 (2025)indonesia300,000 - 1,073,000 (2027)pacific White shrimp production 2017 vs. production targets (tonnes)Next >
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