The global shrimp industry is expected to face a challenging year in 2024, with oversupply continuing to be a major concern. Rabobank analysts predict that global shrimp production will remain flat at around 3.9 million metric tons, while demand is expected to grow only marginally. This imbalance is likely to put further downward pressure on shrimp prices, which have already been declining for several years.
The situation is particularly dire for shrimp producers in Asia, who account for the majority of global production. These producers have been hit hard by low prices and rising production costs, leading many to reduce their output or switch to other aquaculture species. The situation is expected to be particularly difficult in India, where shrimp production is forecast to decline by as much as 20% in 2024.
Despite the challenges, there are some reasons for optimism. Demand for shrimp is expected to continue to grow in the long term, driven by increasing incomes and urbanization in major markets such as China and India. Additionally, there is growing interest in shrimp as a sustainable source of protein, as shrimp farming has a relatively low environmental impact compared to other forms of animal agriculture.
However, the short-term outlook for the shrimp industry remains uncertain. Oversupply is likely to persist in 2024, and producers will need to find ways to reduce costs and improve efficiency in order to remain competitive. Rabobank analysts suggest that producers focus on improving feed efficiency, reducing disease losses, and developing new markets for their products.
The global shrimp industry is at a crossroads. Oversupply and low prices are posing major challenges, but there is also potential for growth in the long term. Producers who can adapt to changing market conditions and improve their efficiency will be well-positioned to capitalize on this growth.
editor
1 December 2023