An Indian shrimp veteran has urged farmers both in India and Ecuador to focus on value-added products and to diversify their export markets, anticipating that the shrimp market could reach an "all-time low" if the coronavirus crisis extends into next year.
Talking during an online event organized by the Ecuadorian Camara Nacional de Acuacultura (CNA), which is taking place on Aug. 26 and 27, Manoj Sharma -- owner and director of Mayank Aquaculture, a shrimp farming company in Gujarat, India -- pointed out that raw shrimp prices have dipped below $4 per kilogram, while for value-added they range from $8-$10/kg.
This is why farmers should move away from selling mainly raw products, he said. He added they should divert focus from the Chinese market, pointing to recent blocks on some processors as one of the reasons. Ecuadorian shrimp producers shouldn't depend on a single market for 70% of their sales, he said -- something already signaled by several Ecuadorian executives in the past. He added the Indian sector should try to diversify, selling more to Europe, Japan, and the US. "We need to correct that," he insisted, noting that China was also a shrimp producing country.
During his presentation at "Aqua Expo El Oro", Sharma predicted three possible scenarios for the global shrimp market, depending on the length of the coronavirus crisis.
In the worst-case scenario, the pandemic is going to continue for another year or two, which could lead shrimp prices to face an "all-time low".
In a moderate scenario, the crisis could last another four or five months, after which shrimp-consuming nations should restart their orders. However, during this time, tourism and restaurant purchases would remain slow, and pick up progressively in economies recovering faster.
In his third scenario, the crisis would be fully resolved in two or three months, with a cure being found and distributed around the world. This could mean a "new world for the shrimp market", where "all buyers will line up", and prices could spike again, according to Sharma.
However, even during this optimistic scenario, the global market might take two years to recover, having been severely affected by the crisis, he warned.
As a result, Sharma said that larger vannamei sizes might be less in demand and that, as a farmer, he would be focusing on smaller sizes, particularly 40-50 count, short crops, and highly intensive stocking densities. Moreover, he said he was focusing on "very efficient farming" to lower farming costs.
He also noted that shrimp farming's future would depend on the crisis length and that in Gujarat, where he is based, 20-30% farmers are likely to convert to farming monodon, or black tiger shrimp.
He stressed the industry would be doing well when the "farmers are earning" again and encouraged farmers and processors to work more closely together.
Aqua Expo took place online this year, on Aug. 26-27, with several presentations and a virtual trade show, intended to resemble a "normal" trade show as closely as possible.
Participants to the online event could "visit stands" with an avatar of themselves, check their product portfolio, and have zoom calls with exhibitors if they wished.
CNA will repeat its online efforts with the Aqua Expo Guayaquil 2020, scheduled to take place on Nov. 17-19.
August 28, 2020 at 03:58PM
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India veteran urges farmers to focus on VAP as shrimp market could reach 'all-time low' - Undercurrent News
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