Titel 1 - Siicex

CBI Trend Mapping:
Frozen Shrimp Products
‘Insights and foresights on key European market
dynamics’
CBI Trend Mapping provides you with a brief overview of the
major market trends, forecasts (short and long-term) and
action to consider in the European market for frozen shrimp
products.
Management Summary
The global shrimp sector is recovering from the EMS outbreak. Also the strong
price increase of shrimp last year has ended. Food safety, sustainability and
supply chain transparency are increasingly important requirements in the
European shrimp market. In order to secure a supply of safe and sustainable
shrimp products, European buyers are shortening the length of their supply
chains and investing in long-term relationships. There is potential for you in the
European market if you are able to meet with its food safety and sustainability
requirements.
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer
CBI Trend Mapping: Frozen Shrimp Products
Social Market Drivers

Considerations for action
Increasing attention given to and
 If you have any activities that protect the
sustainability and responsible sourcing
environment or support local communities,
The shrimp farming sector, particularly in
include these in your marketing strategy.
Asia, has received negative comment from
 In 2013 Global G.A.P. and the Aquaculture
Europe’s media in countries such as
Stewardship Council started to work together
Germany and the Netherlands (e.g. child
in order to harmonise their requirements. A
labour in Thailand). The sector has been
step by step approach makes it possible to first
criticised for its negative impact on
become Global G.A.P. certified and then work
communities and the environment. The
towards ASC certification. This can make it
result is that consumers are increasingly
easier for you to work towards certification.
aware of the negative social and
environmental impact of shrimp farming.
Owing to this media attention and increasing
consumer awareness, ever greater numbers
of European buyers are seeking out shrimp
suppliers able to prove the sustainability and
responsibility of their product by means of
certification or else suppliers with a
responsible story underpinning their product.
It is important to be aware of your
company’s impact on the environment and
local communities. If you have special
activities within your company to support
communities or the environment, you should
include these in your marketing strategy. As
an example, you could produce leaflets
about your activities or else present your
company at tradeshows.

Local meets global
 If you meet international buyer requirements,
Buyer requirements for shrimp products in
consider marketing this domestically as well.
the high-end market segments in developing
countries are becoming stricter. The gap is
reducing between buyer requirements in
Europe and in high-end market segments in
developing countries. In the short term,
standards in developing countries will remain
less stringent than in Europe. However, the
differences between food safety and
sustainability requirements in developing
countries and in Europe will reduce over the
long term. Nevertheless, these different
standards are unlikely to merge into one
global standard.

Convenience food
 Invest in value-adding processing activities in
Owing to the pressures of time and the
terms of knowledge and technology in order to
number of consumers who do not know how
increase the value of your product.
to prepare shrimp, demand is increasing for
ready-to-eat and easy-to-cook, value-added
shrimp products. Currently, only simple
value-adding activities such as peeling and
portioning are outsourced. However, as a
result of price pressure, there will be more
complex value-adding activities over the
long term, such as the production of
marinated shrimp being outsourced to
processors in developing countries. This
offers you opportunities if you are able to
produce quality value-added shrimp
products such as skewers or marinated
shrimp.
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer
CBI Trend Mapping: Frozen Shrimp Products
Technological Market Drivers

Considerations for action
Food Safety and transparency
 Discuss with your buyers whether it would be a
Food safety and transparency are
good idea to, in addition to BRC and IFS,
increasingly important in all parts of Europe.
become accredited for other food safety
Previous problems with the quality of shrimp
standards.
products, as well as related financial and
reputational risks to European buyers,
resulted in greater stringency concerning
market access requirements. Private quality
standards and supply chain transparency are
increasingly used as market access
requirements in order to guarantee safe
shrimp products to European consumers.
Quality standards relate both to European
regulations and to additional buyer
requirements such as BRC and IFS. You
need to comply with the highest standards
by becoming BRC or IFS-approved and to
trace every product you sell by introducing
proper administrative systems for your
sourcing activities. Transparency relates to
the traceability of shrimp products. Over the
short to long term, quality and transparency
are expected to become even more
important.
Economic Market Drivers

More uniform buyer requirements
In earlier years there was the huge
difference in buyer requirements throughout
the EU. Now it seems that the EU market is
becoming more uniform. This is partly
caused by the more stringent EU regulations
but also by the fact that retailers throughout
the EU increasingly apply the same buyer
requirements. The uniformity of the EU
market is likely to increase further by
initiatives such as the Global Sustainable
Seafood Initiative (and earlier the Global
Food Safety Initiative) which will benchmark
certification initiatives and offers retailers a
tool to work with more than one certification
initiative.
Considerations for action

Global shrimp crisis impacts EU demand  Although other markets currently may be
The global outbreak of EMS has caused
more interesting than the EU, consider to
record prices in the international market. In
continue to do business with your EU
order to reduce the impact on consumer
customers in order to maintain your
prices, consumer sellers have initially started
relationships for when prices turn back to
to purchase smaller size shrimp and to use
normal.
higher glazing and soaking rates in order to
limit the impact of EMS on consumer prices.
Although the outbreak of EMS still has an
impact on the global shrimp market, the
sector is slowly recovering and prices will
slowly move towards pre-crisis levels.
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer
CBI Trend Mapping: Frozen Shrimp Products

Shrimp consumption in Eastern Europe
 Discuss with your buyers whether you could
increasing
supply specific products that would enable you
Eastern Europe is still experiencing economic
to penetrate the emerging shrimp market in
growth and this is expected to continue in
Eastern Europe
the near future. Consumers are very price Do market research on Eastern Europe and
conscious and shrimp are relatively new to
contact buyers located in Eastern Europe to
most consumers. Product characteristics
discuss the products that are greatest in
present fewer compliance difficulties than in
demand and the most important market
other parts of Europe. However, the shrimp
segments.
market in Eastern Europe is expected to
remain small in the short term, although the
market is set to grow significantly over the
long term. The best mode of entry is via
importers in Western Europe that are
expanding their businesses.

Increasing competition from BRIC
 Try to find buyers who buy not only on a spot
buyers
market basis but who are also willing to invest
European buyers are being faced with
in longer term relationships through contracts
competition from BRIC countries that are
or partnerships.
offering the same or higher prices while
having less stringent product requirements.
Consequently, European buyers will
sometimes need to accept lower profit
margins and pay higher prices for the raw
material. This situation will become even
more difficult for European buyers in the
long term. In terms of shrimp, the
significance of this trend will depend on the
increase in production volume. As long as
demand increases faster than supply, this
will have a positive impact on your business.
The result for you will be an improved future
bargaining position with European buyers;
buyers will also be more likely to secure
their supply by investing in relationships
with suppliers that are more sustainable.
Environmental Market Drivers

Considerations for action
Certification in the mainstream market
 If you are interested in becoming ASC or
Sustainability certification initiatives used to
Global GAP-approved, please contact ASC, the
target specific niche markets. At present, the
Dutch Sustainable Trade Initiative or the Global
mainstream market is also increasingly
GAP website for support and assistance.
sourcing shrimp products that have
certification trademarks. This is especially
true in the case of large supermarket chains
in northern and western Europe. Currently,
the most commonly required certificate is
Global GAP. However, supermarket chains in
western Europe have announced that they
wish all their shrimp products to be certified
by the Aquaculture Stewardship Council
(ASC) as of 2015 onwards. ASC is expected
to gain in importance in other parts of
Europe over the long term. If you want to
supply leading European retailers, you will
have to invest in sustainable certification.
The ASC shrimp certification is has started in
2014 and the first ASC certified shrimp are
expected to become available at the end of
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer
CBI Trend Mapping: Frozen Shrimp Products
2014. ASC will introduce a standard for large
farms and a separate one for smallholder
farms.

Certification in niche markets
There are various niche markets throughout
Europe where specific certification initiatives
are market access requirements. These
certification initiatives mostly relate to fair
trade or organic production. Niche markets
are expected to expand in line with growing
awareness on the part of European
consumers concerning what they eat and
how their food is produced. Particularly
suitable candidates for organic certification
are shrimp produced in extensive or else
intensive production systems where only
natural foods have been used and no
additives. If you are selling organically
produced shrimp, you should ask you buyer
whether certifying your product would
present you with an opportunity.
 For information on certification initiatives,
please visit the CBI database or ITC’s
standards map.
Political Market Drivers

Considerations for action
20% customs checks on consignments
 Set up a public-private work group to discuss
of shrimp
food safety issues in the EU market and to
European health authorities continue to
develop a strategy to prevent sanctions by EU
apply strict policies to the import of tropical
authorities
shrimp. Various countries, such as India and
Indonesia, are being confronted with 20%
 Lobby with your government for good
customs checks that are imposed following
representation in Brussels in order to
the detection of contaminated batches of
inform/stay informed about European
shrimp. With consumer awareness rising
Commission decision makers.
about the use of chemicals and medicinal
drugs in shrimp production, regulations will
 In order to stay up-to-date on changes to EU
remain strict and sanctions will be imposed if
regulations, and to influence EU policy, make
the situation does not improve. European
sure that you are a member of your national
sanctions will have a negative impact on
seafood exporters association.
your competitive position in the European
market over the short to long term.
Therefore it is crucial that you cooperate
within your national exporters’ association
and with the national government to ensure
regulatory compliance in the shrimp sector.
This survey was compiled for CBI by LEI Wageningen UR
in collaboration with CBI sector expert Siegfried Bank
Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer