Dynamics of Vannamei Shrimp Market and Its Influence on Prices
Vannamei shrimp has become one of the most sought-after seafood commodities in the international market. To date, vannamei shrimp has contributed up to 36% of Indonesia’s total fisheries export commodities.
However, at times, shrimp prices experience uncertain fluctuations caused by varying market demands. This article will further discuss the relationship between market demand and its influence on shrimp price.png)
s.
s.
The Relationship Between Market Demand and Shrimp Prices
Fundamentally, shrimp prices depend on the level of market demand. This means that the higher the market demand for a specific shrimp size, the higher its price compared to other sizes.
Conversely, if a particular shrimp size has abundant stock due to a lack of market interest, its price will decrease. This is where the law of supply and demand applies in the vannamei shrimp business.
Price Disparities Among Factories for Specific Sizes
Each factory has its uniqueness in the export market. Generally, each factory operates contracts with exporters that regulate shrimp sales based on specific sizes. These contracts establish requirements that factories must meet.
To fulfil contracts with exporters, factories ensure that the shrimp they produce aligns with demand. For instance, if a factory has a contract to provide a specific shrimp size, they will focus on producing that size to meet market needs.
The existing price variations for each shrimp size reflect market dynamics and competition among factories striving to meet demand. This condition creates a complex dynamic influenced not only by supply and demand factors but also by contractual agreements.
Other Factors Influencing Shrimp Prices
Apart from supply and demand, several other factors affect shrimp prices in the global market, including:
1. Influence of Weather Conditions and Climate Change
Weather changes can directly disrupt vannamei shrimp cultivation; for example, heavy rainwater can disturb the balance of pond water. Drastic changes in pond ecosystems can stress shrimp, making them susceptible to diseases.
When shrimp experience stress, their immune systems can be compromised, leading to increased vulnerability to diseases. When shrimp ponds are affected by diseases, the productivity level decreases, directly impacting prices in the market.
.png)
2. International Trade Policies and Tariffs
In the exportation of vannamei shrimp, inter-country trade policies, including imposed tariffs, import quotas, and international trade agreements, significantly impact prices in the market.
For instance, shrimp-importing countries may impose additional tariffs on exporting countries. This can hinder shrimp producers’ access to specific markets or even reduce the competitiveness of their shrimp products.
Fluctuating trade policies can create market uncertainties that subsequently affect shrimp prices and demand overall. However, it’s important to note that each country typically has its policies.
Cre: DELOS Aqua
Ngày đăng : 30/06/2024
1183 View
Other Articles
Indian shrimp pivot to the EU, increasing competitive pressure on Vietnam
Indoor shrimp farming in Europe: Investment challenges and the race to find a viable model
Shrimp production surged in the first month of the year, with exports benefiting from strong demand during the Lunar New Year holiday
Quang Ninh Accelerates Digital Transformation in Shrimp Farming, Rising to Lead Northern Vietnam
Lucky money is not just about cash — it’s Aqua Mina’s wish for a worry-free farming season for our valued customers
Việt Nam's top 10 seafood exporters command nearly one-fifth of industry revenue
Ca Mau Maintains Its Shrimp Brand in International Competition
VIETSHRIMP ASIA 2026 & AQUACULTURE VIETNAM 2026 – A TURNING POINT FOR THE MODERN SHRIMP FARMING INDUSTRY
Ecuador's shrimp industry educational program SustainED kicked off its 2026
An Giang will start raising brackish water shrimp as early as the beginning of 2026
Aqua Mina conducts the on-site installation of two aquaculture air blowers | Ceramic Ball Bearing – 15 kW – 25 kPa for a customer in Quang Ninh
Towards Building Brand Value for the Shrimp Industry
.jpg)