Prices and price
developments of frozen
crustaceans and
cephalopods
The outlook for especially crustaceans is positive. World production
of fish products is estimated to have increased in 2009, with all of
the expansion originating from the aquaculture sector. Although the
volume of fish traded internationally only decreased slightly, a severe
contraction in the value of trade appeared as prices fell and trade
shifted towards less expensive fishery products to the benefit of
shrimp suppliers.
Price trends
The fisheries sector remains heterogeneous with quite diverse price patterns for different
species. For all species, higher prices exists for value added products e.g. peeled, packaged,
sliced or even marinated species. For 2011, the EU reported price reductions between -1%
and -3% for squids and prawns. Below you can see some examples of price trends presented
by Globefish.
The demand in the international fish market is influenced by growing economic
uncertainty. Importers, processors and retailers in the large importing markets are scaling
back on purchases, less willing to commit or to enter into any long-term contracts. As a
result, prices on many fish products are declining after hitting the highest level ever in
March 2011.
On the bright side, the supply is decreasing too. A few developments monitored by
Globefish are:
Wild catch of especially shrimps is currently under pressure due to supply problems.
Traditionally shrimp prices start to lower in international markets when supplies of
farmed shrimp improve from May/June each year. In 2011 this has not happened so
far. The price of black tiger and vannamei shrimp in June and July even increased
when the supply situation remained difficult in the producing countries. The news of
serious crop failure in Viet Nam is putting further pressure on the market. The
situation may mean that more raw material will be imported by Viet Nam for
processing for export. Vannamei prices from Thailand have eased recently along with
improved supplies.
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Prices and price developments of frozen crustaceans and cephalopods
Prices have been steadily rising since 2007 and this trend is likely to continue in the
near future. Supplies appear to be satisfactory to fit market demand at the moment.
The FAO Food Outlook reports that due to increasing fuel costs, some squid jiggers
have even kept their vessels in port. China continues to be the main supplier, in part
re-exporting processed products sourced from Peru and the United States. Catches of
the West Africa octopus season have been disappointing, indicating that higher prices
are likely towards the end of 2011.
Figure 1 Price trends of various crustaceans and cephalopods
Source: Globefish price report, April 2010
EU rules and regulations regarding prices
Prices are firstly dictated by supply and demand, but there are a few specific EU rules that
influence import prices to the EU too. Every product being imported into the EU, must be
classified under a certain taric code, which carries a set rate of (European) import duty and
(national) VAT. Ensure that you have checked out the VAT and tariffs for your goods, to
make sure you have set the right price.
VAT in EU countries for most fishery products is between 5% and 8% (the baseline is set
at 5% for all EU countries). VAT must be paid at the moment the goods are imported so
they are immediately placed on the same footing as equivalent goods produced in the
EU. Read more on VAT:
http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/index_en.htm
The import tariff is harmonised between all EU countries, but varies by species,
country of origin and the export date. Import tariff for most unprocessed shrimps is
12%. You can find the specific import tariffs for each product, country and date on
behalf of the taric code (“Integrated Tariff of the European Communities”)
corresponding to your product via the EU Export Helpdesk. To help DCs, the EU
developed a Generalized System of Preferences (GSP) to promote the sustainable
development of and trade with DCs. This system enables exporters from most DCs to
export without having to pay import tariffs. Read more on the GSP:
http://www.unctad.org/en/docs/itcdtsbmisc25rev3_en.pdf. You can find the list of
specific countries in each group on:
http://www.unctad.org/templates/WebFlyer.asp?intItemID=3765&lang=1
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Prices and price developments of frozen crustaceans and cephalopods
In most cases, costs associated with import tariffs are paid by the importer. The impact for
exporters is that the import tariffs influence the price that an importer wants to pay
(subtract the VAT and import tariff to determine a reasonable import price). Another
impact is the competitive advantage of GSP countries have regarding price to non-GSP
countries.
WTO negotiations, if successful, are likely to lead to a general reduction of import tariffs for
fish and fisheries products (negotiated under ‘Non-Agricultural Market Access’, NAMA).
Asian exporters of fisheries products will benefit from lower tariffs in importing countries
(e.g. EU and Japan), whilst the preferential access to the EU market that ACP countries
currently enjoy under the GSP will be reduced.
 See also CBI’s module ‘Costing and pricing for fishery products’ for a description on who
pays for what.
Table 1
Taric codes crustaceans and cephalopods
Fresh, chilled or frozen crustaceans and cephalopods
Taric
03061910
Product
Frozen- Flours, meals & pellets of
crustaceans, fit for human
Taric
o3072110
03061990
Frozen - Other, fit for human
consumption
Not frozen- Rock lobster & or sea
crawfish- live/fresh/chill
Not frozen- Rock lobster & other
sea crawfish- Other
Not frozen - Lobster- Live, fresh or
chilled
Not frozen - Lobster- Other
Not frozen - Shrimp and prawnsDried
Not frozen - Shrimp and prawnsLive, fresh or chilled
Not frozen - Shrimp and prawnsOther
Not frozen - Crabs - Live, fresh or
chilled
Not frozen - Crabs - Other form
Not frozen- Flours meals & pellets
of crusta fit for human
Not frozen- Other, fit for human
consumption
Oysters - Live, fresh or chilled
Oysters - Other
03072190
03062110
03062190
3062210
03062290
03062310
03062320
03062390
03062410
03062490
03062910
03062990
03071010
03071090
030729
03073110
03073190
030739
03074110
03074190
030749
03075110
03075190
030759
03076090
03076010
Product
Scallops, including queen
scallops - Live, fresh or
chilled
Scallops, including queen
scallops - Other form
Scallops, including queen
scallops- Other
Mussels - Live fresh or
chilled
Mussels - Other form
Mussels - Other
Cuttle fish and squid - Live
fresh or chilled
Cuttle fish and squid Other form
Cuttle fish and squid Other
Octopus - Live fresh or
chilled
Octopus - Other form
Octopus - Other
Snails other than sea
snails - Other form
Snails other than sea
snails - Live, fresh or
chilled
For your convenience some taric codes applicable to frozen crustaceans and cephalopods
are included in the table above. In case you do not know the taric code applicable to your
product, search in the database of EU Expert Helpdesk or ask customs or a business support
organisation in your country.
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Prices and price developments of frozen crustaceans and cephalopods
 Find the Export Helpdesk at: http://exporthelp.europa.eu/index_en.html
Minimum prices
The EU sets guide prices on some fishery products. The proposed guide prices are based on
Member States' average market prices over the previous three years. Other factors taken
into account include trends in production and market demand, the interests of consumers
and the need to avoid withdrawals of fisheries products from the market. The guide prices
are there for the purpose of monitoring whether EU fishermen can compete on the market
and whether they need budget support. When the EU price for a species drops below a
minimum level (known as the withdrawal price), according to the set guide prices,
intervention mechanisms for EU fishermen are triggered, EU members of fishermen
organisations then receive compensation from their organisation.
The guide prices for 2012 can be found on:
http://ec.europa.eu/fisheries/news_and_events/press_releases/2011/20111116/index_en.h
tm
Currency developments
Currency developments may have influences on prices and price competitiveness. Over the
first few months of 2011, the Euro has increased in value opposed to the Dollar: € 1.00
ranged from $ 1.33393 on January 1 to $ 1.43896 six months later on June 30 2011. At the
time of writing (December 2011), the Euro currency is destabilising. A decrease in the value
of the Euro will result in higher prices for crustaceans and cephalopods from countries with
a currency tied to the US Dollar (such as many Asian countries). Trading with Europe in a
currency tied to the Euro (such as many West African countries) will be more competitive.
Many European countries that are not part of the Euro currency area, have the value of their
currencies strongly attached to the Euro.
Enclosing a period of validity in your quotation is also important here, as currencies
tend to change.
Trading with Europe in a currency tied to the US Dollar in case of a low Euro,
competitiveness on quality and service is extra important.
For the latest currency developments between the Dollar and the Euro see the graphic
on the website of Oanda: http://www.oanda.com/currency/converter.
Box 1. Case: shrimp export Vietnam
During the first months of 2010, the Euro had decreased in value opposed to the Dollar.
Cao Thi Kim Lan, director of the Binh Dinh Fisheries Company, was quoted by Tuoi Tre
newspaper as saying that with 60 per cent of total export revenues coming from the EU,
the depreciation of the currency had badly affected her company's earnings. European
importers were alleged not wanting to sign contracts with large volumes or long delivery
times because they were afraid the Euro to fall further, another seafood company
executive said. The solution for the Vietnamese shrimpers was to change their focus onto
new markets: the Gulf of Mexico oil spill created opportunity for them and other markets
in Asia were also opening up. During the first half of 2011, the Euro has risen again.
Useful sources
UNCTAD - http://www.unctad.org/Templates/Page.asp?intItemID=1889&lang=1 –
prices of commodities;
Sea-Ex - http://www.sea-ex.com/trading/market.htm - market prices for fish and
seafood & fish auction sites;
Aquafind - http://aquafind.com/seafoodprices.php - price sources for the Seafood and
Freshwater Fish industry worldwide;
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Prices and price developments of frozen crustaceans and cephalopods
Food Market Exchange - http://www.foodmarketexchange.com/tradeleads - offer of
worldwide delivery conditions and prices;
PEFA - http://www.pefa.com/en/market-statistics.html - Europe's largest marketplace
for fresh fish;
MSC - http://www.msc.org/documents/developingworlds?searchterm=developing+world - MSC Developing World Program.
This survey was compiled for CBI by CREM B.V.
in cooperation with Siegfried Bank
Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer
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