X-factor of China shrimp market
Chinese production in 2014 was hit because of EMS, said a source based in the country, not wishing to be named.
“Sizes were mainly small in order to try to beat the EMS. Nothing tells me that things would change suddenly in China,” he told Undercurrent.
“I think large sizes will carry on going down in demand while more demand on 60s and 70s. I think they [Chinese processors] will carry on buying big quantities from India and Vietnam for reprocessing for export markets for CPUD, CPUD and CPDTOs,” he said.
Unless there is a sudden and definite cure for EMS I cannot see the production being much better than last year, he said.
As for the Chinese market, it is expected to stay the same. “Shrimp is part of daily diet, at least smaller sizes. Probably large imported sizes will be reduced in quantities. Same for wild, sea caught. But otherwise, no big changes,” he told Undercurrent.
“What is changing here is the way people buy”, he said. “To start with there were some very large buyers, taking 40/50 containers at a time; then several large buyers, taking 10-20. Now, there are quite a lot of smaller buyers, taking only 2-3 containers.”
There is also a shift in term of Ecuadorian processors offering different specifications for Chinese buyers, with higher glaze and less net weight, he said.
At the same time, some Ecuadorian processors now have offices in China and have people scooping all fish markets searching for buyers for containers. “God only knows when they will start sending case by case from Ecuador?”
Source: Undercurrent News – Photo source: sdsoybean