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December 24, 2013

China

Evergreen Aquatic Products Cuts Exports,
Cites EMS, Postlarvae Prices

 

Liang Chaorong, manager-assistant at Zhanjiang Evergreen Aquatic Product, a billion dollar shrimp farmer and exporter, said his company expects to only export “a few tons” of shrimp in 2014 as a result of the raw material shortage caused by the early mortality syndrome (EMS).

 

Evergreen has already cut its exports from around 1,800 metric tons in 2012 to around 1,300 tons in 2013.  In 2014, exports are likely to drop to just 500-600 tons.

 

In contrast, the group expects to sell 5,000-6,000 tons domestically in 2014, up from 3,500 tons in 2013.  The remaining 20,000 to 30,000 tons that its farms produce will be sold to third party processors.

 

China’s shrimp harvest is expected to drop by around 30% in 2013 because of EMS and poor weather including repeated typhoons in southeastern China, where Evergreen’s shrimp farms are located.

 

The shrimp raw material situation has “no chance” of getting any better in 2014, so farmers will use more antibiotics to prevent the shrimp from dying, said Chaorong.  This, in turn, will make it impossible to export to markets where the use of antibiotics is limited or prohibited, like Japan, the USA and Canada.

 

In addition, negotiations between shrimp farmers around Zhanjiang and Shrimp Improvement Systems, the Florida, USA-based company that supplies a large amount of shrimp postlarvae to the Chinese region, failed to reach an agreement this year, said Chaorong.  Farmers tried to negotiate the price downwards, citing a drop in quality, and the parties failed to agree on a price.  A deal will have to be sealed by April 2014 in time for the next farming season, he said.

 

Source:Undercurrent News.  Editor, Tom Seaman (undercurrent@undercurrentnews.com).  Darden Calls on Thailand to Address Shrimp Labor Situation.  Eva Tallaksen (eva.tallaksen@undercurrentnews.com).  November 28, 2013.

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