magazine for sustainable sourcing and market intelligence48 southern europe special70 united states market update67 gssi seafood certiﬁcationmore shrimp, less ice bangladesh-eu market consultation#5 March 2019vietnam and india delay stocking harvest peak not expected until may Powered by©2019 Stichting Seafood Trade Intelligence Portal (STIP). ShrimpTails is an STIP (www.seafood-tip.com) publication and has four issues per year.25 March 2019disclaimerLimitation 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, Jo Hamilton-Bilijam & Ursula Beer / Editors Collective Amsterdam (NL)Contributors Jasmijn Venneman / STIP (NL), Adeyemi Ademiluyi / STIP (NL), Christos Rallis / STIP (NL), Flavie Denelle / 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), Bas Bilijam (NL) & Annette van Tits (NL)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 Jasmijn Venneman / STIP firstname.lastname@example.org t +31 6 40 81 33 61 silver membersgold membersShrimpTails and Seafood Trade Intelligence Portal are powered by Solidaridad Network. contents05 editorial 46 southern europe18 20,000 vietnamese producers on course to reach Best Choice rating06 a wild ride towards the future of food consumption08 introduction to sourcing updates60 spotlight onNacho Cuevas67 gssiglobal alignment in seafood certiﬁcation32 what does a successfulAquaculture Innovation Challengelook like?72 china’s shrimp imports in 2019 the full picture62 a quick lookat three major French retailers38 more shrimp, less ice, no cheating on the size!Bangladesh shrimp market consultation48 southern europe special50 portugalthe country where size matters 56 “want some aioli on that shrimp?”the Greeks love quality44 introduction to market updates16 vietnam64 north-western europe70 united states24 india36 bangladesh30 indonesia12 ecuador14 rexa new control system for goods im-ported with preferential tariﬀscolumnsourcing updatesmarket updatesin-depth tailsdashboardsinterviewsmonterey bay aquariumwalton family foundation26 now is the timeto invest in sustainable shrimp04shrimptails | editorial 05shrimptails | editorialSo, here we go again, the ﬁrst ShrimpTails of 2019! To be honest, when we ﬁrst embarked on this magazine I wasn’t entirely sure whether we’d be successful enough in bringing you interesting stories and analyses that would keep you with us. However, I have now realized that this industry is so dynamic, its direction so diﬃcult to predict and that there are so many stories to tell, that I’m certain we will keep you not only informed, but amazed and entertained for many editions to come. 2018 was such a dynamic, crazy year. We started oﬀ with a tsunami of shrimp being harvested in countries like India and Vietnam and most major producers broke export records in the ﬁrst half of 2018. These records came at the cost of a rapid decline in shrimp prices. Farm gate prices sank so low that farmers struggled to make proﬁt, and most of them even lost signiﬁcant sums of money. In response, in the second half of the year, farmers were much more cautious to stock their ponds. So when harvests at the end of 2018 were completed, it was clear that most of the year-on-year growth achieved in the ﬁrst half had evapo-rated in the second half. However, due to cautious stocking and small-er harvests, prices in the second half of 2018 increased to a level that allowed farmers to make some proﬁt again. The big question then was whether farmers would feel secure enough to stock for 2019’s summer crop. At this moment, it seems that farmers haven’t entirely regained conﬁdence. In India and Vietnam, farmers have delayed the majority of stocking up to late March, so we expect harvests to only peak in May-June, instead of in April. On another, more positive note, we are very proud to announce that we have convinced the Walton Family Foundation (WFF) and Monterey Bay Aquarium (MBA) that ShrimpTails is the perfect medium to report on their investments in the shrimp industry in Asia. This year, you’ll ﬁnd stories on the WFF’s programme in the Indonesian shrimp industry, and on MBA’s partnerships in Vietnam, Indonesia and the US to im-prove sustainable shrimp production and facilitate certiﬁcation. What’s more, this ﬁrst edition will take you to Southern Europe where you can read about shrimp-loving countries like Greece, France, Portugal and Spain, all big players in the EU shrimp industry. Enjoy reading and be inspired by the start of another year of Shrimp-Tails!Willem van der PijlDirector Seafood Trade Intelligence Portaleditorial 06shrimptails | a wild ride towards the future of food consumptiona wild ride towards the future of food consumptionshrimptails | a wild ride towards the future of food consumption 07Barry gold, director environment program of the Walton family foundation, talks aBout the future of sustainaBle aquaculture.I sometimes feel as though the aquaculture sector is like driving down an unknown highway with-out a GPS system. Population growth the world over, a growing global middle class demanding high-quality protein sources, and global consumptive and dietary tastes are changing both what people eat and the ways people eat in today’s world. These chang-ing demands are reﬂected in the global international trade in food commodities and, most acutely to the readers of ShrimpTails, in the aquaculture sector. Aquaculture businesses must respond to these demands by providing good-quality products to restaurants, retailers and consumers in an ever-competi-tive global seafood market.As the director of the Environment Program of the Walton Family Foundation, I have seen ﬁrst-hand the tremendous growth of the aquaculture sector, which today provides more than half of the seafood con-sumed globally. The Walton Family Founda-tion’s Environment Program seeks to protect ocean and river systems and the livelihoods that depend on them, for the beneﬁt of people and the environment. We believe that those who are closest to a challenge are often also closest to its solution. That’s why we work with farmers, ﬁshermen, businesses, and all those who live near or around seas and rivers, to help drive solutions to encourage better management and greater sustainability of these ecosystems and the goods and services they provide.In 2017, the Foundation dipped its toe into the water to explore sus-tainable aquaculture in Indone-sia. Our intention was to use our modest philanthropic resources to help ensure that Indonesia’s large ﬁnancial commitment to aquacul-ture growth could be used to pro-mote best management practices in environmentally and socially sustainable aquaculture. We have focused our attention on the shrimp sector because the Indone-sian government has made this a priority sector in recent years. We have started to see important in-novations in shrimp management as a result. And, of course, we’re engaged because unsustainable shrimp farming can have signiﬁ-cant negative consequences on the environment.Two years in, we have provided more than $4.5m in 15 projects across Indonesia. A few exam-ples illustrate our strategy. We are supporting a project to help determine the carrying capaci-ty for shrimp farming based on siting considerations, water and space requirements, and the best science on how to mitigate dis-ease outbreaks. We are partnering with IDH – the Sustainable Trade Initiative – to develop and pro-mote guidelines for investing in sustainable aquaculture. We have a project with Rare and CP Prima to pilot innovations in recycling shrimp ponds through water management strategies and other technological innovations. More-over, we are supporting continued development of the entrepreneur-ial system for good businesses through Solidaridad’s 2019 Aqua-culture Innovation Challenge, a prize-based competition to bring new ideas to shrimp aquaculture. These are only a few examples of the kind of work we are support-ing, but they are indicative of our interest in helping the Indonesian government promote sustainable aquaculture through management improvements, technological innovation and market incentives. Our hope is that the foundation’s funding will spur innovative think-ing and new ideas to bring mean-ingful improvements to shrimp aquaculture in Indonesia, and perhaps, beyond.So fasten your seatbelts! We are in for a wild ride towards the future of food consumption, and aquacul-ture will be a vital part of that ride. Together, I hope we can navigate that route in a way that provides ever healthier seafood to the millions of consumers – in a way that beneﬁts people and keeps the planet healthy too.In every ShrimpTails edi-tion of 2019, we’ll present you with at least two stories about projects supported by the Walton Family Foundation, in which we’ll highlight the importance of these projects for the further sustainable development of Indonesia’s, and potentially even the global, shrimp industry. 08shrimptails | introduction to sourcing updatesthis first edition of ShrimpTailS for 2019 contains sourcing updates on ecuador, vietnam, india, indone-sia and Bangladesh. they provide the most up-to-date information in the form of a revieW of the previous months and an outlook for the remainder of the year. they include detailed regional information for each country, as Well as country-Wide production and ex-port trends, company neWs and international trade is-sues, amongst other relevant topics. in this introduc-tion to the sourcing updates, We summarize the main developments across the sector for this quarter.Major stocking in VietnaM and india delayed until March With the 2018 situation in mind, farmers in India and Vietnam have applied a diﬀerent stocking strat-egy in 2019. After having cleaned and dried their ponds in January, farmers in certain areas started to stock some of their ponds by the end of February. Major stocking, however, was delayed. Shrimp-Tails sources from India reported that by early March, only about 40% of ponds had been stocked. Similar ﬁgures were mentioned for Vietnam. Our sources in both countries expect that by the end of March farmers will have stocked about 90% of their ponds. Of course, this will have consequenc-es for the timing of harvesting the ﬁrst big crops of the year in India and Vietnam.looking aheadVietnaM and indiaNormally, when farmers follow the historical stocking pattern, peak harvests for the ﬁrst crop would start in April and ﬁnish in June. This year, however, due to delayed stocking and the prac-tice of partial harvesting applied introduction to sourcing updates looking Back2018 export VoluMes ended slightly aboVe 2017 leVelsUnfortunately, most countries have not yet published data on shrimp production ﬁgures for 2018. So, to analyse 2018’s year-end situation, we have to look at the export statistics available. The record shrimp exports that most producers in Asia and South America showed in the ﬁrst half of 2018 did not last. Although by the end of the year some producers still showed slight year-on-year growth in terms of volume, in terms of value, exports ended at a lower level than in 2017. This was especially the case for Vietnam and India. While both countries reported stunning growth in the ﬁrst half of 2018, in the second half, the export value started to show negative year-on-year growth. India increased its export volume to 615,000 tonnes, 8% more than its 2017 volume. How-ever, its export value dipped by 6% below its 2017 value to a mere $4.7bn. Vietnam’s year-end export value dipped by 6% under the 2017 ﬁgures. Unfortunately, Vietnam export volumes have not yet been published, but we expect these to be more or less ﬂat, or to show only a slight increase, compared to the 2017 ﬁgures. While some data is still missing, ShrimpTails estimates that compared to 2017, 2018 global export volumes of warmwater shrimp increased by roughly 5-10%, while the export value declined by about 5-10%. Willem van der Pijl09shrimptails | introduction to sourcing updatesby farmers in both countries, we expect harvests to peak later than usual by around May/June, and to continue into July. This means that signiﬁcant quantities of smaller sizes, say 100 count per kg, would become available in May, while signiﬁcant quantities of 60 count per kg would be ready in June, and of 30 count per kg only in July. Depending on how market demand will develop over the coming months, the delayed harvests may cause farm gate pric-es to increase. We may feel the ef-fects of this in around April/May in particular when demand related to buying for the summer season in Europe and the US will likely be at its highest. In June and July, how-ever, we predict that prices may fall, as European and US importers will already have ﬁnished buying for the summer season and will not yet be ready to place orders for the 2019 winter season. indonesiaShrimpTails estimates that Indo-nesia’s 2018 exports will ﬁnish at about 10% above 2017’s export volume. In general, it seems that Indonesia’s shrimp industry is experiencing positive development and we expect that the country will hit a production volume of 400,000 tonnes soon. Indonesia ﬁnished harvesting its last crop of 2018 in January and February this year. Farmers are expected to stock the majority of ponds by the end of March when the rainy season is over. Contrary to previous years, Indonesia will harvest its ﬁrst crop of 2019 simultaneously with India and Vietnam, which may have a neg-ative eﬀect on farm gate prices. bangladeshAs Bangladesh’s freshwater season ended in January, its black tiger shrimp (P. monodon) season is about to start. By March, most ponds have been stocked as there was a decent supply of post-larvae. The ﬁrst har-vest is expected to start in around April, with 40-70 count per kg siz-es. From mid-May onwards, larger sizes can be expected of 10-15 count per kg, and these are expect-ed to fetch a relatively high price of between $10-12 per kg. How-ever, the 40 and 60 count per kg harvest sizes are expected to have a low price – just as last year – at around $5.50 per kg and between $4.50 and $5 per kg respectively. ecuadorIn 2019, Ecuador is expecting to grow by about 10-15% both in terms of production and exports. With China as its driving force for this growth, and exporters mov-ing away from indirect exports through Haiphong, there is a strong focus on direct exports and investments in brand recognition on the Chinese market. Aside from China, ShrimpTails expects that the EU will further consolidate Ecuador’s position and will grow in importance for the export of export perforMance of Major shriMp producerscountry20172017volume20182018valuebangladeshchinaindiaindonesia1thailandVietnaM2argentinaecuador339,536192,285571,198179,714181,140333,000183,292469,000volume (tonnes)value ($ ‘000)change (%)1 indonesia’s growth percentage is estiMated based on the 2018 iMport figures reported by the us and japan as they already published their 2018 year-end iMports froM indonesia.2 Value data is sourced froM Vasep and includes only the Value of pacific white shriMp and black tiger shriMp. 3 sourced froM www.cna-ecuador.coM. source: itc trade map–170810–21n/a119n/a5–60–21–5812n/a2,193,3794,673,123n/a1,485,7243,115,6031,300,4703,198,715483,0222,092,2484,947,7981,705,9301,889,6593,258,2481,200,1612,860,63133,000192,825615,000n/a143,107n/a185,442557,612Next >
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