Keeping up With the Crustaceans: Prices Crash in the New Season – What Happens Next?
The expected shrimp price crash has arrived. There may be a small near-term price correction, but, in the absence of an unforeseen disease outbreak, the low-price situation is here to stay. This will challenge the global shrimp industry in all parts of the value chain.
-Most key regions are expected to continue supply growth, albeit at a slower pace, due to a strong momentum in the industry. The lower profit pool, however, will discourage many investments.
-Nevertheless, investments in biosecurity, mechanisation, and professionalisation remain as important as ever in order to retain cost-competitiveness and prevent a new disease outbreak.
-The lower prices may trigger consolidation at various points in the value chain – from feed producers and processors to individual farmers.
-From a western-markets point of view, the low shrimp price is an opportunity for processors and retailers to work on value addition, innovation, and demand creation. This is the key to long-term growth and profitability of the industry.
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Gorjan NikolikSenior Analyst - Seafood Read more