Businessicy – The Ministry of Marine Affairs and Fisheries (KKP) reported a 15.8% decline in Indonesian shrimp exports to the United States (US) for the first half of 2024 compared to the same period last year.
Budi Sulistiyo, the Director General for Strengthening Competitiveness of Marine and Fisheries Products at KKP, noted that from January to June 2024, the US remained the primary destination for Indonesian shrimp exports, with a total value of USD 477.29 million, which is approximately IDR 7.41 trillion (using an exchange rate of IDR 15,531/USD).
Despite the US being the leading market, there has been a year-over-year decrease in shrimp exports to the US, with the export volume recorded at 62,170 tons.
“The US remains the top market with export values of USD 477.29 million, accounting for 63.1% of Indonesia’s total shrimp exports. However, there has been an approximate 15% decline in exports,” Budi mentioned during a press conference on the Update on Shrimp Dumping Allegations in the US at the KKP Media Center, Mina Bahari IV Building, Jakarta, on Monday (September 2, 2024).
Budi attribute the decline to reduce consumption in the US, which has been link to American consumers becoming more selective in their purchases amid high interest rates in the country.
Meanwhile, the global value of Indonesian shrimp exports for January to June 2024 also saw a 13.6% decrease compared to the same period last year.
“The most significant drop in exports occurred in the US market, which experienced a 15.8% decline. This market is crucial for Indonesian shrimp, representing 63% of the total shrimp exports from Indonesia,” Budi added.
The decrease in exports was not limited to the US. Indonesian shrimp exports to Japan, China, and ASEAN countries also fell by 8.3%, 24.4%, and 29.3%, respectively, on a yearly basis.
Frozen shrimp continues to dominate Indonesian shrimp exports, accounting for 63.7%, followed by preserved shrimp at 31.9%, and chilled fresh shrimp at 4.4%.
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Edy Putra Irawadi, Special Staff to the Minister of Marine Affairs and Fisheries for Foreign Affairs, highlighted some positive aspects of the anti-dumping tariffs imposed on Indonesian frozen shrimp in the US market.
One positive outcome is the potential for Indonesia to tap into new export markets. The anti-dumping margin for Indonesian frozen shrimp exporters is set at 6.3%, whereas other countries, such as Ecuador, face higher anti-dumping tariffs of 10.8%.
“The advantage is that Ecuador’s margin is 10.8%, making their shrimp less competitive compared to ours. As a result, buyers might shift their purchases from Ecuador to Indonesia due to our lower margin of 6.3%. This shift could lead to increased demand for Indonesian shrimp,” Edy explained during the press conference on the Update on Shrimp Dumping Allegations in the US at the KKP Media Center, Mina Bahari IV Building, Jakarta, on Monday (September 2, 2024).
On the downside, the volume of Indonesian shrimp exports to the US has decreased. KKP noted a 15.8% drop in exports to this major market, which represents a significant portion of Indonesia’s total shrimp exports. Total Indonesian shrimp exports globally for January to June 2024 amounted to 98,510 tons, valued at USD 760 million.
“The negative impact is evident, with a reduction from 170,000 tons in the previous year to around 70,000 tons this year. If this trend continues, the volume of exports will likely continue to decline,” he said.
Another adverse effect is the erosion of Indonesia’s shrimp export competitiveness due to the 6.3% anti-dumping tariff.
Although Indonesia’s anti-dumping tariff is lower compare to other countries, the overall competitiveness is affected. As a result, the US may seek new suppliers to replace Indonesian exports.
“Our competitiveness is diminish due to the dumping margin. We are likely to see a decline in export volumes as US importers look for alternative suppliers,” he concluded.
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