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The reopening of the Brazilian market means a 'salvation' for Argentine exporters. (Photo: Stock File)

The reopening of the Brazilian market, a 'Red Bull Energy Drink' for the shrimp sector

Click on the flag for more information about Argentina ARGENTINA
Tuesday, July 23, 2019, 00:00 (GMT + 9)

At a time when the demand of whole wild shrimp is not going through a good moment, and the local shrimp sector remains active with the sale of blocks to third countries for reprocessing, the opening of the neighboring country's market has been confirmed with the approval of the shipments from three companies.

This week, authorization was given by Brazil to import shrimp from three Argentine companies. There are many more companies qualified before the DIPOA but these are the first to achieve a license to reach the Brazilian market with their production. The news is like an "Energy Drink'' for those who find complications today to supply the European market with whole shrimp, in the face of strong competition from farmed shirmp like the vannamei. So far, large sales volumes are supported by blocks of shrimp tails to be reprocessed in other countries. In this sense, from the entrepreneurial sector they request to adjust the reimbursement scheme to promote greater production on land.

Box of Argentine raw shrimp or "Gamba" N 3 2Kg Frozen brand Pescar

The Secretary of Agribusiness informed that the Ministry of Agriculture, Livestock and Supply of Brazil had officially announced the name of the first three companies authorized to export shrimp after six years. The Brazilian Association of Shrimp Breeders had filed a precautionary measure, which was revoked last month.

The opening of this market is great news for the sector, although there are still some doubts about the criteria used by the neighboring country to approve licenses. In any case there is optimism and they consider that the bureaucratic trade mechanisms with Brazil could be adjusted. The addition of this market expands the possibilities in an international commercial context facing many difficulties.


 

 

 

YouTube video from ABCC about shrimp - year 2019 | Source:  | Associação Brasileira de Criadores de Camarão – ABCC

In Europe, the market for whole Argentine shrimp is very complicated this season as a result of the overproduction of vannamei. Only Ecuador increased its exports from 150,000 tonness in 2018 to 300,000 this year. The price of farmed shrimp, therefore, fell by 30%, to USD 6,000 per tonne.

This situation dragged the price of Argentine wild shrimp, whicht suffered a drop of 20%. Last year the tonne was paid USD 7,500, while today the value is USD 6,500 but in addition and despite its low value and being a product of much higher quality than the farmed shrimp, the demand in Europe has disminished.

Source: Karina Fernández / Revista Puerto (Read the full article here - in Spanish)

Related articles:

- Brazil updates zoosanitary requirements for shrimp imports
- Argentine shrimp can reenter the Brazilian market

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