Seven factors that determine the price of shrimp

Table of Contents

Most of the world’s shrimp is produced in developing countries such as Ecuador, India, Vietnam, etc. However, the highest per capita consumption of shrimp is in developed countries. Statistics show that Japan has the world’s highest per capita shrimp consumption with 3.28 kg per capita. The second place in per capita consumption of shrimp is the United States, and European countries have the third place.

No matter how it is served, shrimp has many fans and can be considered a superstar among seafood products! Apart from its unique taste, its nutritional benefits cannot be ignored. This delicious tiny creature is rich in protein, antioxidants, omega-3, iodine, etc., all of which are useful for our bodies.

With these interpretations, what might make shrimp not be included in the food basket of all people in the world?

-Some people may not like the special smell of shrimp,

-It may not be easy to access shrimp for some people.

– Its economic aspect is important for other people.

Yes, shrimp is not a cheap product and belongs to the relatively expensive food category.

But what factors determine the price of shrimp?

When we think about the factors that determine the price of shrimp, the first things that come to mind are species, size, and quality. These items are important and influential factors in determining the price of shrimp. For example, we all know that the bigger the shrimp, the higher the price. On the other hand, the higher the quality of the shrimp, the higher the price.

However, these are only one side of the story. The shrimp farming industry is a vast industry and it is like a chain that has many links. In such an industry, various factors can affect the price of the product in the global market. Let’s examine together the factors involved in determining the price of shrimp. Stay with us.

1- Supply and demand: These are always one of the most important factors that determine the price of products in all industries. The shrimp farming industry is no exception to this rule. As the most popular seafood product, shrimp is in high demand all over the world. If the amount of production and supply of this product is less than the existing demand, we will see an increase in the price of shrimp, and if the supply exceeds the demand, the final price of the product in the world market will decrease.

2- Production costs: production costs are another factor affecting the final price of shrimp in the world market. Shrimp production imposes various costs on producers. These costs include the preparation of larvae, feed, fuel and energy costs, equipment, etc. If these costs increase for various reasons, the final price of shrimp will change. For example, Asian countries faced an increase in the price of shrimp feed in 2018 which caused an increase in production costs and ultimately, an increase in the price of shrimp in the world market.

3- Market conditions and exchange rate: economic conditions, exchange rate changes, inflations, records, tariffs, and trade agreements, all affect the price of products. The exchange rate is one of the important factors in determining the price of shrimp in the world market. Exchange rate changes have a direct effect on the cost of export and import of countries and cause an increase or decrease in the price of shrimp in the market.

4- Transportation costs: most of the shrimp produced by countries are exported to other countries. The process of transporting shrimp from the farm to the factory, from the factory to the port, and from the port to the final destination, all involve a lot of costs.

If transportation costs increase, the price of shrimp will also be affected. It should be noted that sometimes trade restrictions and embargoes also cause an increase in transportation costs and, as a result, the price of shrimp in the market.

5- Shrimp diseases: It is another thing that can affect the price of shrimp. Diseases such as Early Mortality Syndrome (EMS), if prevalent, can significantly reduce shrimp production. This decrease in production eventually leads to an increase in the price of shrimp in the world market.

6- Competitors: The shrimp farming industry, like all other industries, has many obstacles. If some of them reduce or increase the price of their product, the market will also be affected by this change, and other competitors must follow this change to stay competitive, and this will ultimately lead to an increase or decrease in global output.

7- Global crises: In addition to all the factors mentioned, the impact of global crises on the price of shrimp cannot be ignored. In case of crises such as war, floods, earthquakes, diseases, etc. shrimp production will face problems and the result of this reduction will be an increase in the price of shrimp.

In this article, we tried to examine the main and most important things that affect the price of shrimp in the world market. Undoubtedly, there are other factors involved in this story. Things like the political and commercial relations of countries, changes in people’s eating habits, climate changes, replacement and improvement of production methods, etc. can affect the final price of shrimp.

At Atlas Meigoo Company, we are always doing our best to provide the highest quality product at the right price to the consumers and we hope that all the people of the world can put this unique product in their food basket.

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