What causes this year's decline in U.S. imports of shrimp?

American shrimp imports have fallen sharply, weak market demand and trade barriers are the main reasons.

U.S. imports of shrimp fell sharply in June 2023, down 14% from the same period last year. Analysts say this decline is mainly influenced by previous trade barriers that have led to excessive purchases and weak demand for consumer markets.

Imports of shrimp fell to 53,179 tonnes in June, according to the latest government figures. In the first half of this year, U.S. imports of shrimp fell by nearly 3%to 349,941 tonnes. Gorjan nikolik, a senior analyst at rabobank, said the excess procurement of new anti-subsidy taxes earlier this year was now being replaced by more cautious order adjustments.

In addition to trade barriers, the U.S. downturn in the shrimp market has been affected by other factors. Donelson berger, a manager of shrimp brands at stavis seafoods, a Boston supplier, points out that the continued downturn has finally prompted farmers to reduce their breeding. Indian shrimp suppliers have harvested 70% of the year's output, which means the supply of shrimp on the market will be more intense until the second quarter of 2025.

Meanwhile, U.S. retail and catering markets are still trying to get rid of the impact of high inflation. Although consumer confidence has improved, analysts say consumers are still not optimistic about inflation and food prices, which means that even if prices fall, the amount of purchases of shrimp, especially in retail markets, is hard to improve in the short term.