Research

Keeping up With the Crustaceans: Prices Crash in the New Season – What Happens Next?

16 August 2018 11:46 RaboResearch

The expected shrimp price crash has arrived. There may be a small near-term price correction, but, in the absence of an unforeseen disease outbreak, the low-price...

Rabobank

    Most key regions are expected to continue supply growth, albeit at a slower pace, due to a strong momentum in the industry. The lower profit pool, however, will discourage many investments. Nevertheless, investments in biosecurity, mechanisation, and professionalisation remain as important as ever in order to retain cost-competitiveness and prevent a new disease outbreak. The lower prices may trigger consolidation at various points in the value chain – from feed producers and processors to individual farmers. From a western-markets point of view, the low shrimp price is an opportunity for processors and retailers to work on value addition, innovation, and demand creation. This is the key to long-term growth and profitability of the industry.

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