India continues to buck the trend (28% growth in exports in July) despite US July shrimp imports dropping 4%
India led the pack by exporting 11,635 metric tons, up 28.3% from a year earlier surpassing Ecuadorean exports.
Ecuador, which last July was the biggest exporter to the US, is still the second biggest, according to recently released statistics from the National Marine Fisheries Service (NMFS).
Indonesia stayed in third place overall by exporting 9,211t this July, up 12.9% year on year. Thailand (5,290t in July 2015) rose to fourth place, overtaking Vietnam (4,063t) which saw a precipitous 43% drop.
More detailed report by USDA (giving exports figures in terms of value) will be out by tomorrow
Was speaking to somebody on aqua culture in ongole.
Here is what I was able to gather during the short discussion. Since this is a second hand account, the information needs to be validated.
shrimp prices went down drastically (the person quoted 50 count shrimp at Rs. 180 which is usually sells at Rs. 350 according to him. However, my experience is people usually quote 25-30 count price for reference) . A large number of people in the area have lost money recently.
state government is giving subsidy of around 90 % on hatchlings
there is a fund created by state government to facilitate loans through banks
insurance is being arranged to recoup in case of any losses
there is a huge shrimp processing facility coming up in Eluru.
power is supplied at the rate Rs. 3.5 rupees per unit compared regular price of Rs. 8 per unit. Please note aqua culture needs power for running aerators to increase oxygen in water. They run in the morning/evening when oxygen levels are usually low
there is a lot of support from state government
Disclosure: No investment in Avanti feeds. Might be biased against due to prev. bad experience in aqua culture.
Such negative publicity is not good for the industry given that it is election time in USA. It’s the time when trade protectionist voices get stronger and politicians tend to agree with them.
The vannamei shrimp raw material prices in India’s main production region Andhra Pradesh are moving up fast, due to weak landings in the main production areas, sources told Undercurrent News.
According to sources, the price is likely to move up further.
Production is “very bad”, one Andhra Pradesh-based packer and farmer told Undercurrent.
This is because stocking was low by farmers from May onward, due to production problems and the price drop, he said.
Going by the above article, price of shrimps rising due to less shrimp production this season. Would be interesting to compare this against Avanti’s feed sales numbers.
Any business concern has a value more than the book value if it is a profitable venture. Decision of the board to transfer a part of the business without disclosing value to a private company which even if a fully owned subsidiary of that company needs to be analysed.
This is very positive move by company & Further making 2 rs trading share face value increase volume of trading.over all very intelligent move by organisations…
Despite this being such a great multi bagger story, why this stock is still not covered by any analyst or research house yet or I am missing something.
Endless shrimps at Red Lobster is again starting.It had closed down due to high price of Shrimpa.Opp size remains huge for shrimps n only aquaculture can meet it
India continues its rapid volume growth of 34% in the US, despite overall volume declining by 10%
Strikingly in contrast, all other major countries have shown a decline in volume, with Ecuador and Vietnam falling by 20% and 40% respectively in August
Market share of Indian shrimp import has increased to 31% in the month of August 2014, from 21% last year
Year to date market share has also improved from 17% last year to 23% this year
However there has been a major decline in prices of shrimp in the US…to $8.75 from $10.83/kg last year
I was trying to compare premium of Avanti’s shrimp export realizations over India’s export realizations. These seem to have dipped substantially from a premium of 54% in FY12 to just 9% in FY15 (all data from AR12 through AR15). Hence, while volume share is stagnant at 1%, value share has reduced from 1.7% to 1.1%. The sheet below will illustrate this over the years. Request anyone who is in touch with management to confirm.
The going seems good with intentions of expansion in the feeds and seeds business very clear. The bigger kicker could be increased focus on exports and branding. This is where the collaboration with TUF would be put to good use. This seems to be the next step but yet conjecture. Thai shrimping business is recuperating very slowly, and this augurs well for Indian shrimpers. Concerns of outbreaks and import bans continue.
this news is actually enough to cause a worry in our mind…
Nd main thing is that things hav changed…nw its no more cheap as it ws 2 years back…growth is der but factors contributing to the growth are fading…
nd sooner or later countries with disease issue will start exporting nd avanti nd india will loose its export advantage & quantity …nd prices hav already reduced by ~30-35%…
so its better to book some profit or exit completely then repenting later…
it has given a fabulous return…!!
A 10x for me personally…!!
Please refrain from making such sweeping comments. Avanti thread has been full of such news pieces and comments and yet the stock is a ten+ bagger.
Look at the data of US imports posted above where india share of shrimp imports has gone up alot. IMO we should wait for company results.
