The present study was conducted in Vietnam, Indonesia and Bangladesh, and updates information on shrimp price trends from January 2008 to June 2009. The locations and methods, as far as possible, followed those adopted in the previous study, enabling comparisons and analysis with the previous study period.
In Vietnam, there has been a continuous trend among farmers to reduce the previously reported investment level, especially stocking density and other major production costs. Consequently, both the total production of shrimp harvested per year and shrimp yield per crop decreased over the period examined (2008-2009).
The price of Vietnamese shrimp initially appeared to recover from the initial negative effects of the US antidumping duties, perhaps because of the market expansion to other countries, or various other strategies designed to mitigate these negative impacts. The most effective solutions were efforts to: (1) reduce production and marketing costs, (2) improve shrimp quality, and (3) increase the proportion of value added products for export.
In Indonesia, shrimp prices for most count sizes of P. monodon and for most stakeholder groups were stable or demonstrated a slight decrease over the study period.
The primary explanation reported for this stability in price pointed to the limited volume of production and market share in the shrimp industry. In the instance of the processing plant, the study was based on one data set due to difficulties in accessing requested information. Farmers’ selling price lowered because of the decreased availability of fresh shrimp and due to the introduction of antidumping duties in a range of countries.
These factors allegedly led to the illegal importation of shrimp from affected countries. However, the shrimp production volume is increasing in Aceh, though it has not returned to the same level as its pre-Tsunami conditions. Indonesian shrimp appeared to be facing several difficulties, such as unusual events (i.e. the Tsunami), disease outbreak, and increasing pressure from international markets requesting quality products.
In Bangladesh, trends of both procurement as well as resale prices of all the concerned stakeholders were positive, indicating that over time both trends increased (the sales price for farmers is expressed as the traders procurement price, as traders buy directly from farmers).
The Bangladesh shrimp industry seems to be the healthiest in terms of the price trends among the three countries studied. However, according to a media release, sixty consignments of frozen shrimp from Bangladesh were rejected by the EU between 2005 and 2009, due to nitrofuran contamination. These food safety concerns could affect Bangladesh's export reputation, export volume, and overall price unless proper measures and controls are set in place.
In conclusion, this study shows various fluctuations in shrimp prices. Shrimp price trends in Vietnam for most of the sample period showed upward trends for farmers and downward trends for procurement prices for both traders and processors. On the other hand, both the procurement price and resale price of all concerned stakeholders in Bangladesh demonstrated upward trends – particularly during the first half of 2009. Indonesian black tiger shrimp price was considerably stable during the study period, with only minor changes.
The purpose of this study is to update the previous study, “Evaluation of the impact of the Indian Ocean Tsunami and US Anti-Dumping Duties on the Shrimp Farming Sector of South and South- East Asia, 2006”1. The previous study highlighted the need for continuous collection of price data, not only from processors of exported commodities, but also from traders and farmers. A broader collection of price data would facilitate a more thorough evaluation of the state of the industry and provide the opportunity for interventions to increase the sustainability of the sector.
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