US market bleak 
The USA is the world’s main importer of shrimp with about 550 000 tonnes annually. 2007 was characterized by a sudden downward trend for shrimp imports by the USA. Following ten years of constant expansion, the USA imported only 557 000 tonnes of shrimp in 2007, worth US$ 3.9 billion. This corresponds to a 6% drop in volume and a 5% drop in value on 2006 figures.
Various conditions created this slump in shrimp imports: the dollar devaluation making other markets more attractive, the boom in oil prices, the generally slower US economy, anti-dumping tariff disputes, production reduction in some key areas and a reduction in consumer confidence.
The decline affected almost all categories with the exception of some value-added products. US imports were mainly of headless, shell-on form (236 000 tonnes – equivalent to 42% of total imports) but this category experienced an 8% decrease both in volume and value compared to 2006. In contrast, peeled frozen shrimp, the second most traded import category in the USA, grew substantially and reached 178 592 tonnes, which corresponds to a 32% import share and a 10% increase on the 2006 figure. Imports for other preparations, and more particularly for breaded frozen products, decreased significantly (-26% for breaded frozen shrimp). Generally, since volume and value decreased in the same proportion, the average unit value remained stable for almost all categories.
Thailand maintained its leading position in the US shrimp market with 188 300 tonnes equivalent to US$ 1.2 billion but saw its exports to this country decrease by 3% both in volume and value. Nevertheless, its market share continued to grow slightly in the US market. 2007, was a difficult year for Thailand, due to falling prices and unfavourable anti-dumping duties compared to its rivals. The WTO decision in favour of Thailand will allow products from this country to enter the US market with low import duties in 2008.
Ecuador, second supplier to the USA, enjoyed strong growth in recent years and continued in 2007 to gain market share, despite slightly decreasing exports to this market. It is in the sell-on, headless import segment that Ecuador was more present with 45 800 tonnes and where its market share expanded, particularly for larger grade products. Indonesia reached Ecuador’s.
Ecuador, second supplier to the USA, enjoyed strong growth in recent years and continued in 2007 to gain market share, despite slightly decreasing exports to this market. It is in the sell-on, headless import segment that Ecuador was more present with 45 800 tonnes and where its market share expanded, particularly for larger grade products. Indonesia reached Ecuador’s levels in 2007 and with Vietnam (+6%) and Mexico (+15%), was one of the few countries to show an increase in volumes to the USA.
China was less successful and after good 2006 results, it suffered an almost 30% decrease in its exports. This is the result of the decision of the US Food and Drug Administration to ban, in June 2007, shrimp imports of Chinese origin due to unapproved drug contents. The majority of Chinese products sold to the USA was of breaded frozen form, hence a major decrease in this category.
Brazil almost disappeared on the US market following lower availability but also due to the tariff increase imposed by the US authorities. In addition, Brazilian producers prefer to sell in the Brazilian market, where prices are good, due to the high value of the national currency.
More generally, Asian countries diversified their supplies to the USA with more value-added products whereas the two Latin American countries (Ecuador and Mexico) concentrated more on frozen shell-on products. The domestic shrimp supply was very low in 2007, with only 71 200 tonnes (-45% on the very good results of 2006).
Ecuador, second supplier to the USA, enjoyed strong growth in recent years and continued in 2007 to gain market share, despite slightly decreasing exports to this market. It is in the sell-on, headless import segment that Ecuador was more present with 45 800 tonnes and where its market share expanded, particularly for larger grade products. Indonesia reached Ecuador’s levels in 2007 and with Vietnam (+6%) and Mexico (+15%), was one of the few countries to show an increase in volumes to the USA.
China was less successful and after good 2006 results, it suffered an almost 30% decrease in its exports. This is the result of the decision of the US Food and Drug Administration to ban, in June 2007, shrimp imports of Chinese origin due to unapproved drug contents. The majority of Chinese products sold to the USA was of breaded frozen form, hence a major decrease in this category.
Brazil almost disappeared on the US market following lower availability but also due to the tariff increase imposed by the US authorities. In addition, Brazilian producers prefer to sell in the Brazilian market, where prices are good, due to the high value of the national currency.
More generally, Asian countries diversified their supplies to the USA with more value-added products whereas the two Latin American countries (Ecuador and Mexico) concentrated more on frozen shell-on products. The domestic shrimp supply was very low in 2007, with only 71 200 tonnes (-45% on the very good results of 2006).
The general crisis changes US consumer habits The economic downturn is reported to be changing US consumer habits. According to a survey prepared by Nielsen on 50 000 consumers, about two thirds are reducing their expenditure, and about half of them are eating out less. Also, about one third of shoppers are turning to lower priced products. On the other hand, a study published by Unilever based on a survey of 47 000 consumers showed that they are less likely to cut back on retail seafood than other foods, although the frozen meals are likely to suffer reduced purchases. These trends are likely to affect the demand for shrimp in the restaurant sector, as one of the main trade channels, while the effect on household consumption is not clear yet.
US shrimp imports in the first half of 2008 totalled 236 000 tonnes remaining almost unchanged in terms of volume compared to the same period in 2007, while import value grew 2.4%. These variations result in a 2.5% increase of the unit value of imports, accounted for mainly by the growth of the unit value of purchases of frozen shell-on. Overall, Asian nations still dominate US shrimp imports: Thailand, Indonesia, China and Viet Nam concentrate 65% of total imports. Ecuador is an important supplier with a 13.5% share. Asian nations supply more value-added products, while Latin American countries export mainly frozen headless shell-on.
Frozen shell-on continues to be the most important category, accounting for 40% of the imported volume and 41% of the value (94 000 tonnes, worth US$ 680 million). The main supplier of headless shell-on was Ecuador, accounting for 26% of total supply of this product. The second most important imported item is peeled frozen shrimp, with 74 700 tonnes worth US$ 545 million, it accounted for 32% and 33% of total volume and value of imports. Comparing these figures to the same period in 2007, purchases from foreign countries grew 3% in quantity and 1% in value. The main supplier of this line of production was Thailand with a 27% share, followed by Indonesia with a share of 24%. It is interesting to note that the two categories already mentioned increased their share in total supply of imported shrimp, mainly at the expense of breaded frozen shrimp and other frozen preparations. In the breaded frozen segment, China remains the top supplier, but sales from this country fell both in volume and value (-25% and -29% respectively). Thailand now prefers to do part of the breading themselves, rather than exporting the raw material to China. Thus exports from Thailand grew substantially.
After the second administrative review, the US Department of Commerce reduced the antidumping duties for several companies from Thailand, India and Viet Nam. In the case of Thailand, Thai Union Frozen Products, one of the main suppliers of shrimp worldwide, had its duty reduced to 2.85% from a previous high of 15.3%, and the average duty for Thai exporters was set at 5.95%. The duty reduction also favoured more than two dozen other companies. In the case of Viet Nam, four exporters will be exempt from the antidumping tax, twenty-three will have a rate of 4.57% and others will have to pay up to 25.76%. The Vietnam Association of Seafood Exporters and Producers (VASEP) expressed its concern that these rates are higher than expected, and could make the Vietnamese industry less competitive than the other countries in the region. As for India, the review set the duty rate at 1.69% (previously it was set at 7.22%). This country is, however, urging the USA to adopt the resolution from the WTO to abolish the practice of bonding for shrimp imports. The USA, meanwhile, has asked for a "reasonable period of time" to implement the rulling, which some analysts see as delaying tactics with the presidential elections imminent. The Gulf of Mexico shrimp sector is seen as very important in the USA.
Domestic production has been affected by several tropical storms and hurricanes. Although the fleets have not been as seriously damaged as at the time of the hurricane Katrina, the main damage was on land, resulting in a lack of fuel and ice. Prior to the storms, many operators tried to sell their stocks, at much discounted prices. Despite the reduction in domestic shrimp supplies, no significant price increases are expected, as demand remains dull and imported products set a roof on prices. US landings of shrimp between January and June were 22% lower than in 2007 falling to 26 000 tonnes. The outlook for the US domestic shrimp sector is not very good, as it has been seriously affected by higher fuel prices and low prices. In the long run, this should result in a reduction in the number of vessels.
