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12 Market Barometer//

Market Trends the supermarkets and grocery shops. More customers are
adopting grocery pick-up and delivery services to practice
The global seafood trade continues to be affected by the effective social distancing as recommended by their
COVID-19 pandemic through reduced food service demand government authorities. Retail sales of seafood with longer
and disruption of food chains. China is recovering slowly, shelf-lives such as frozen and canned/pouched products,
while the US, Europe, and much of Asia are in varying stages have significantly increased. Demand for online retail sales
of battling the onslaught of the virus, which continues to take have soared as well, resulting in some products running out
an unprecedented toll on millions of lives and livelihoods. of stock.
(A special INFOFISH Situation Report on Covid-19 and its
effect on the global fisheries industry can be read on pages Europe and others: With the on-going negotiations on a
22-37 in this issue of the INFOFISH International). trade deal between Vietnam and EU27, Vietnamese shrimp
exporters hope that sales to Europe will continue to expand.
SHRIMP Under the EU-Vietnam Free Trade Agreement (EVFTA), the
duty for shrimp (all types) will be down to zero from the
Supply current 12-20% rates.
Lockdowns in main producing countries, particularly India, With the coronavirus outbreak, some Ecuadorian companies
Indonesia and Thailand due to the Covid-19 pandemic have are no longer exporting to China, instead they are targeting
severely complicated the supply chains. Farm harvesting took new markets in the EU.
place in March for those who had stocked their ponds earlier;
however, the raw materials are being kept in cold storages. Due to the weak seafood demand as a result of the pandemic,
With farms and processing facilities located in different areas, Argentinean shrimp imports, particularly from Europe and
movements of products have become difficult particularly in China, have been greatly affected. The main importers,
India and Southeast Asia. In any case, most processing plants Spain and China, recorded declines of 19.42% and 33.68%
are closed due to the implementation of lockdowns. Farmers respectively. The limited demand from China in early 2020
are reluctant to start another cropping; hence they have resulted in high inventory of shrimp in Argentinian cold
decided to stop seeding because of lack of demand from the storages.
markets. Most exporters are typically thinking months ahead
in terms of sourcing products due to the transit times most TUNA
goods take.
Fishing in the Western and Central Pacific (WCP) remains
Japan: The pandemic has affected the Japanese seafood poor. Carrier arrivals in Thailand are limited but Thai
market adversely. A significant downward trend in the canneries are reporting sufficient raw material inventories.
consumption of ‘luxury’ seafood including shrimp (head-on Transhipment operations in the WCP have been greatly
shrimp particularly) is seen in sushi shops and restaurant affected by the Covid-19 outbreak, with several ports now
chains (fast food, hotels etc) following limited outdoor closed to carriers and fishing vessels. Catches in the Indian
activities and advisories for people to stay at home. Public Ocean are reportedly moderate and raw material inventories
gatherings, Spring festival celebrations and Tokyo 2020 have at local canneries are healthy. Local canneries are operating
been cancelled. However, with the majority of consumers at reduced capacity due to Covid-19 measures.
now staying at home or eating at their respective offices,
supermarket and online (lunch box) sales have gone up Thailand: FoodNews reports that Bangkok’s skipjack tuna raw
remarkably. Ready-to-eat shrimp products that have recorded material prices are stable in the range of US$ 1 450 – 1 500/
good sales include nobashi-based value-added products, MT. Canneries in Thailand are processing at full capacity with
boiled PD shrimp, frozen seafood pilaf and bread-battered local sources saying that canned tuna is selling very well. The
shrimp packages, which has benefitted exporters (Vietnam, raw material supply seems adequate to fulfil the needs of
Thailand and Indonesia) of value added shrimp to Japan. an industry, with a smaller workforce. Due to panic buying,
buyers are asking canneries to ship canned tuna as soon
USA: The consumption pattern for seafood, including as possible but at the same time, they are not placing new
shrimp, has shifted from food service to retail and direct-to- orders against future shipments.
consumer channels (online) following the implementation
of control measures due to the pandemic. Restaurants are Europe: Canned tuna sales are booming in EU lockdown
closed or limited to take out deliveries and this has resulted countries particularly in Italy, the most affected EU country
in a significant decrease in demand for high value seafood. with the highest number of Covid-19 infections and deaths.
Overall consumer demand for shrimp is on a downward trend Production plants owned by the Italian tuna giant Bolton
as consumption is limited to seafood products available in

INFOFISH International 3/2020 ● www.infofish.org