Peru is one of Latin America's worst-hit countries by the coronavirus. Despite the implementation of lockdowns, curfews, and strict travel restrictions, cases continued to rise in recent months due to law infringements of some layers of the population and a flawed health system, according to local sources.
The lockdown has affected the seafood sector, slowing down logistics, fishing and processing activity, and boosting costs. However, over the last month, things are slightly improving, with a partial recovery of orders, according to sources.
Peruvian shrimp exports. Source: PromPeru
Between January and June, Peruvian shrimp firms managed to maintain stable exports both in value and volume, with a notable increase in South Korean (over 130% year-on-year) orders compensating for a drop in Chinese demand.
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South Korea is viewed as one of the world's coronavirus success stories for its management of the disease, although a recent spike in new cases linked mostly to a church has sparked concerns of a broader outbreak, according to BBC.
Peruvian shrimp exports to China decreased by about 50% compared to last year during the period.
Peruvian shrimp exports to China, South Korea, and Japan have been growing in recent years.
However, Chinese demand for imported seafood, including both shrimp and salmon, has been hit this year by the restaurant and hotel sector shutdowns and later by negative coverage linking the spread of the coronavirus with imported seafood.
Ecuadorian shipments to China have also fallen sharply in July, according to the latest available figures, pushing shrimp packers from that country, the largest shrimp producer in the Americas, to diversify its shrimp export markets to the US and Europe.
Peruvian shrimp exports between June 2019-June 2020. Data source: SUNAT. Graph: PROMPERU
Between January and June, Peru exported 17,418 metric tons, up less than 1% year-on-year from 17,405t. The total shrimp volumes exported were worth $ 116 million, only a fraction down in value y-o-y, despite a drop in prices.
Reprocessed Argentinian red shrimp exports (about 3,278t) in the first half of the year accounted for 19% of the total volume exported in 2020, up 14% y-o-y.
Peruvian shrimp exports are generally in line, or slightly above Ecuadorian shrimp prices, according to one source. Shrimp prices have been depressed during the coronavirus crisis, and according to some analysts, they might not recover any time soon. However, this will depend on the global demand/supply balance.
Changes at Camposol
The seafood unit of Peruvian agribusiness group Camposol was previously a bellwether for the performance of the country's shrimp farming and processing sector, from its public reports.
However, it emerges Camposol's shrimp farming unit -- the country's largest, accounting for about 47% of Peru's shrimp production -- no longer publishes results.
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Last year, the fruit and the seafood division were separated to "better allocate management and board focus to each", the company told Undercurrent News by email.
"Each block is now totally independent in all terms (board, management, financing, etc.); nevertheless they are still owned by the same shareholders (the Dyer family)," the firm said.
September 10, 2020 at 03:54PM
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South Korean orders offset drop in Chinese demand for Peruvian shrimp - Undercurrent News
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