MAY 2024
SEAFOOD UPDATE SHRIMP 1. Retail Sales Decline: Despite reduced shrimp prices, retail sales in the US market have declined. This can be attributed to cautious consumer spending habits influenced by prevailing economic conditions. Consumers are opting for lower-priced protein alternatives, impacting shrimp sales negatively. 2. Food Service Sector: While food service sales remained stable during the Lent season, escalating labor, energy, and other operational costs have led to an increase in prices. This poses a challenge to sustaining sales throughout the year. 3. Upcoming Demand Opportunities: The anticipated surge in summer demand after the Lent season is expected to stimulate shrimp sales, offering potential avenues for market recovery.
Transit times remain longer than normal, and while the Panama Canal conditions are improving, the Suez Canal remains problematic. Freight rates are stable and modestly higher than they were before the war broke out. With Ramadan ending, the flow of information should increase as closures impact the markets. The percentage of responses for quotes has been lower than normal. Pricing for Vannamei should only fluctuate once the anti-dumping numbers are announced. However, upward pressure in Ecuador will drive the market higher. Modest price adjustments and fine-tuning are expected until the last piece of the duty puzzle is announced in June. It is hard to advise doing anything but staying in stock until the full dumping rates are known. It is still apparent that 2024 will average higher pricing than 2023, but from a historical perspective, shrimp prices will still be attractive. Another factor impacting the markets is the increased testing by the FDA, which is causing just-in-time inventory plans to be very uncertain. There are more containers on exams than at any other time in recent history. Waiting to find out if your product is cleared will not only cost money and storage but will also cause confusion about buying. If a container fails, replacements are needed quickly, but if it passes, we may have more than needed. Uncertainty causes inaction. Making long-term decisions is harder than normal, with more risk than normal. The US shrimp market continues to face challenging circumstances, marked by shifting consumer preferences, rising operational costs, and dynamic import trends. While shortterm challenges persist, opportunities for market rejuvenation are anticipated due to summer demand. Vigilance and adaptability will be essential for stakeholders to effectively navigate the evolving landscape. Until June, expect greater advances than for declines in price and continue to expect smaller on-hand availability and greater than normal cross-trade transactions. Camerican International is a Division of Gellert Global Group | Visit camerican.com