Buying the pessimism: Trying to catch the bottom

Notes from my further reading on Shrimp Industry:

1. The country earned USD 7.76 billion from its seafood exports in the last fiscal year and had targeted USD 8.8 billion which ends in March 2023. So we still have a quarter left to see if we are able to achieve the target. Vietnam has surpassed USD 10 billion (EUR 9.4 billion) in seafood exports thus far in 2022, reaching an all-time high for the country

2. However, lower demand from the U.S. and the E.U. and obstacles in the Chinese market have made it unlikely that India will reach its goal, according to Seafood Exporters Association of India President Jagdish Fofandi.

3. Currently the Shrimp industry is overstocked

4. Demand is down by 30 to 35 percent, Global shrimp prices have fallen by 20 to 25 percent. This would have been OK if there was some movement of cargo. But the lack of demand makes the price drop much worse.

5. We have a very strong competetion from Ecudor, So supply in Ecudor have to be monitored closely

6. The difficulties have translated into lower shrimp-purchase prices in India, which has discouraged farmers from seeding their ponds, with many considering leaving their ponds fallow until April 2023.

7. The association’s members have agreed to buy shrimp at the government’s fixed price, or INR 210 (USD 2.55) for one kilogram of 100-count shrimp and INR 380 (USD 4.61) for one kilogram of 30-count shrimp. Farmers need at least INR 300 per kilogram of 100-count shrimp to break even considering current RM costs.

8. Vietnam took in USD 10.17 billion from its seafood exports between January and November 2022, a 27.4 percent year-over-year increase, meeting the country’s long-sought-after goal, first set in 2011.