Ecuadorian shrimp exports to the US have grown in recent months filling the void of shrimp shipments to the North American market from India, a country where the COVID-19 outbreak has frequently caused factories to cease production.
Ecuador was able to increase its US market share at a time when its commercial relations with China have been tense and shrimp shipments have dropped. But will the Ecuadorian shrimp industry be able to remain a strong trading partner for the US buyers going ahead, as India and Indonesia recover their production? It remains to be seen, sources told Undercurrent News.
Shrimp output from India and Indonesia is expected to rebound from this month onwards, with partial harvests expected in September and October expected to cause a surge in raw material output. This factor could affect prices in the short-term, according to Sophia Balod, a consultant with the Seafood Trade Intelligence Portal.
Read also
In the meantime, shrimp prices in India's main farming state of Andhra Pradesh and also in Ecuador have dropped week-on-week.
Speaking during a recent webinar hosted by the Ecuadorian Camara Nacional de Acuacultura (CNA), Richard Barry, a program director at the US National Fisheries Institute, questioned whether this trend can last.
Ecuador’s total shrimp exports for July dove by $101 million year-on-year as a surge in sales to the US was unable to offset the collapse of the Chinese market that occurred when three major Ecuadorian exporters were banned due to fears that their products' packaging could transmit COVID-19.
During the Aug. 26 and 27 webinar, Barry explained the COVID-19 crisis didn't cause seafood shortages in the US as there were sufficient inventories when panic buying set in.
"Based on our buying cycles we were well-stocked from the seafood perspective for this event [...]," he said.
Frozen products' boom
During the lockdown period, "there were more meal occasions at home, as people ordered [food in] to stay home and social distance, and people were more up to try creating their own recipes," Barry said.
He pointed out that there has been a barrier to seafood consumption at home for a long time among US consumers since seafood was perceived as difficult to prepare, but at-home consumption has been rising.
"Additionally there was a tightness in beef and pork products, so consumers were exploring other proteins and the biggest gains we are actually seeing in frozen raw shrimp, across all trending categories," Barry said.
Sales of seafood, including salmon, tilapia, cod, and mahi-mahi recorded significant gains during the 12 week period, according to Barry.
"We're going to see how those gains are continuing," he said.
Barry noted that even though seafood consumption gained popularity in the US during the lockdown it is unclear whether this trend will continue as the coronavirus crisis could impact consumer buying power.
Canned tuna's gains
Barry also noted canned tuna saw a 111% increase in the sales during the crisis during the principal buying periods, principal panic buying periods of March 15 and March 20 sales of tuna were up nearly 270% to 26.5 million pounds, but after that, they have essentially returned pre-coronavirus levels.
Canned tuna is the third-most consumed seafood item among US consumers, he said, noting consumer behavior was slightly changing towards available and affordable protein.
Americans are preferring to consume their finfish and shellfish in the fresh and frozen varieties, Barry said.
"However, we're seeing sustained growth in the frozen seafood category across the whole frozen protein category," he said.
Foodservice shutdowns & demand outlook
A rise in unemployment would also affect shopping behavior, potentially harming seafood sales, Barry noted.
Additionally, the foodservice sector has been particularly hard hit in recent months. However, Barry pointed out consumer spending is trending in a positive direction, although it had slowed in some states that had to delay reopening because of a spike in COVID-19 cases.
July was the third consecutive month of positive growth for the restaurant industry, Barry said.
At this point, the sales of total eating and drinking establishments are still about $13 billion lower than pre-coronavirus levels, according to Barry, who noted that 68% of all seafood sold relies on foodservice channels.
Barry noted that shrimp are widely consumed in the midscale casual and fine-dining restaurant segments. He added recovery of the fine-dining segment has been slower compared to takeout and delivery options, which are mainly used by the quick-service and fast-casual segments.
"So this leads to some concerns about buying demand for the next purchasing cycle," Barry pointed out, noting that there was some uncertainty on the level of consumption during the upcoming holiday season since there might be fewer parties and gatherings than usual.
September 08, 2020 at 12:44AM
https://ift.tt/2ZgSTZC
Can Ecuador maintain US market share as Indian shrimp shipments recover? - Undercurrent News
https://ift.tt/3eNRKhS
shrimp
No comments:
Post a Comment