Chinese frozen breaded shrimp. China, Thailand, Indonesia and Vietnam shrimp producers are banding together. (Photo: Yantai Everclean Foods Co. LTD)

Leading Asian shrimp nations look to coalesce

CHINA
Friday, April 24, 2009, 23:50 (GMT + 9)

The representatives of four associations from leading Asian shrimp producing countries joined other experts and industry traders in the 2009 Shrimp Industry Development Forum in Zhanjiang to exchange views on the current global shrimp producing and trading situation and how these are affecting each domestic industry.

The four associations represented at the meeting were: China Aquatic Products Processing and Marketing Association (CAPPMA), Thai Shrimp Association (TSA), Indonesian Shrimp Board of Commodity (ISBC) and the Vietnam Association of Seafood Exporters & Producers (VASEP).

The associations prepared a multilateral statement of measures designed to foment cooperation and the favourable growth of shrimp production. The goal of these cooperative measures, they say, is to maintain a healthy shrimp industry and to sustain its development.

As the top four shrimp producing countries, China, Thailand, Indonesia and Vietnam produce 80 per cent of the world’s farmed shrimp.

Although the farmed shrimp industry has been one of the fastest growers, its export market began to shrink in 2008 with prices declining rapidly. Despite higher production in the leading shrimp exporter countries, profits did not increase proportionately due to higher production costs.

Further declines have been forecasted for the shrimp market due to the global financial crisis. As a result, the challenges faced by exporting countries are not expected to improve within a short time.

The four association representatives shared similar assessments of the present international trade situation.

Demand from the main shrimp import markets is expected to remain low and keep prices down. China, Thailand, Indonesia and Vietnam will therefore look to boost domestic consumption.

The four shrimp producing associations reached an agreement to undertake the following:

• Establish regular information exchange channels with each association assigning a coordinator to facilitate effective communication.
• Work together to take measures to reduce or eliminate trade tariffs and technical barriers, including sharing the latest technologies in shrimp farming and processing.
• Take responsibility for sharing information and maintaining a black list of international companies that engage in questionable or illegal business practices in order to discourage dealings with such companies.
• Obey the principle of producing-according-to-demand as the production scale in each country is planned and developed and of protecting the benefit in each part of the industry.
• Improve the shrimp products processing and management, to increase the variety of products, expand the domestic shrimp consumption market and increase the diversification of the market in order to boost demand.
• Establish traceability systems, and encourage enterprises to reach for appropriate international certifications.
• Consider the establishment of a global shrimp industry alliance with a rotating president, to include the other main producing countries such as Ecuador, India, Mexico, Brazil, Bangladesh, among others.

By Michael Loubet
editorial@fis.com
www.fis.com

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