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Shrimp exports to china recovered


(12/27/2019 12:00:00 AM)

After decling in the first months of 2019, Vietnamses shrimp exports to China began to recover from May to August with double-digit growth. In August 2019, Vietnamses shrimp exports to China rose by 30% to US$ 51.4 million. In the first eight months of 2019, shrimp exports to this market reached US$336.5 million, up 5% over the same period in 2018.

The tightening trade via unofficiall route and strict quality control of China have affected to shrimp exports to this market in the first months of 2019. Besides, China increased sharply shrimp imports from Ecuador and India, resulting in not increasing shrimp imports from Vietnam in the first months of 2019.

Since May 2019, demand for shrimp imports from Vietnam of China has been increasing. Moreover, businesses had also caught up with market requirements and had a better adjustment. Hence, Vietnamese shrimp exports to this market have achieved the positive growth.

According to Chinese Customs data, in August 2019, China imported 63,000 MT of frozen warm water shrimp, worth US $ 372 million. In the first eight months of 2019, China imported 378,000 MT, worth US $ 2.29 billion of frozen warm water shrimp, up 234% in volume and 185% in value over the same period in 2018.

Shrimp imports of China in the first 8 months of 2019 rose sharply as Chinese importers boost imports to process and serve domestic consumption and re-export during the Lunar New Year.

Ecuador was China's largest supplier of frozen warm water shrimp, accounting for about 50% of total shrimp imports into China. Followed by India, accounting for 25% and Saudi Arabia was the third largest supplier of frozen warm water shrimp for China, accounting for 7%. Shrimp imports into China from Ecuador and India in the first 8 months of 2019 lifted from 200 to 300% over the same period in 2018.

Demand for shrimp imports into China from Ecuador has been increasing. In 2014, Ecuador exported 30% of its total shrimp exports to China, equivalent to 68,603 MT, worth US $ 584 million. In 2018, Ecuadorian shrimp exports to China accounted for 61% of Ecuador's total shrimp exports, equivalent to 281,718 MT, worth US$1.66 billion.

Shrimp imports into China from Ecuador in August alone reached 36,500 MT and that of in the first 8 months of 2019 reached 187,000 MT.

Recently, 5 Ecuadorian companies were temporarily banned from exporting shrimp to China due to concerns that the shrimp disease from Ecuador could spread into the country. This incident also affected to Ecuadorian shrimp exports to China.

Shrimp imports into China from the second largest supplier- India reached 16,400 MT in August 2019 and reached 95,000 MT in the first 8 months of 2019.

Vietnam shrimp exports to China from now until the end of the year are expected to maintain positive growth momentum. Enterprises need to proactively update the new requirements and regulations of China and make appropriate adjustments to maintain exports to this market.

VIFEP (VASEP)

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