February 4, 2014
Canada''s shrimp demand higher than anticipated
Despite rocketing prices, shrimp''s raw material and finished products has hit demand, but not as much as some were anticipating, according to Jim Gulkin, founder and managing director of Siam Canadian Foods.
He said that US and Canadian demand is much stronger than previously anticipated. Many retailers are currently booking product at current price levels and many did not have enough inventories for the holidays, he said after a 2013 in which Siam Canadian grew its turnover, despite a dive in its business from Thailand.
Prices have, for the most part, been passed on to consumers, he added.
Demand in Europe was down in 2013, but Gulkin expects it to pick up in 2014. "The weak euro may present some hindrance, however."
The Japanese market has been "steadily improving in 2013 and is expected to remain healthy in 2014", he said.
Siam Canadian has also started to import seafood into Thailand. This is adding to the company''s business rather than being a shift in focus, but it is progressing well, said Gulkin.
As for the 2014 production outlook, Gulkin expects around 350,000 tonnes from Thailand, compared to the level of 230,000 tonnes-250,000 tonnes in 2013, as early mortality syndrome (EMS) hit production hard.
A level of 350,000 tonnes would be positive, which is an attainable target for 2014. But he hopes for more.
Thai shrimp farmers have gotten off to a slow start as cold weather has hampered the start to the year. These low temperatures have exacerbated the impact of early mortality syndrome (EMS).
At this point, the weather has warmed up, and temperatures have reached a normal level for this time of year. The main seeding period for every year is in February.
In terms of production outlooks for other countries, Gulkin anticipates Indonesia''s production will be robust in 2014, as prices there are very attractive for the farmers.
"Vietnam will also do well this year, they still grappling with ems but farming areas are increasing," he said.
Volumes in China will depend on disease, weather and other factors, he said. Chinese domestic demand for shrimp is continuing to grow, and farmers and processors are looking more and more to the domestic market.
Siam Canadian, as is to be expected with the impact of EMS on production, reported a drop in business from its Thai office for 2013.
The company- which also has offices in Indonesia, Vietnam, China, India and Myanmar- managed to compensate for lost business from Thailand with its other offices, said Gulkin. Siam Canadian hit US$290 million in turnover in 2013, up from US$275 million the previous year.
Although Indian vannamei shrimp production surged in 2013, Siam Canadian was not able to capitalise on this as much as Gulkin would have liked.