DUBLIN, Ireland – UK retail and foodservice – customers of shellfish importer and processor Big Prawn Co. – have begun requesting a shift away from sourcing farmed Indian shrimp, said managing director Will Rash.
Speaking at the Global Outlook for Aquaculture Leadership (GOAL) conference in Dublin, Ireland, Rash warned that while the debate over whether or not the EU would move to ban Indian shrimp, over apparent concerns at antibiotic traces – the debate alone was enough to cause concerns.
“One thing we can agree on is that this debate is not good for the sector,” he said. “I trust my Indian suppliers, we test their produce and find it’s perfectly fine. But I have customers telling me to get out of India now.”
The market is beginning to fall into the trap of believing a blanket scenario across all suppliers in the country, he said.
“You can be sure the EU will do what it feels it has to — we won’t be able to influence it. So the sensible business will be assuming [a ban on Indian shrimp] could happen, and will be moving away from a dependence on that country.”
He confirmed that Big Prawn has indeed done the same.
A key issue too is the timing of this debate arising, Rash told Undercurrent News. The Christmas rush for shrimp imports is just about under way, a key time for huge quantity orders.
“Arranging new supplies and sources is simple enough, but takes a long time — time you don’t have when you’re looking to supply for the holidays,” he said.
He also noted that the last major harvests of 2017 are under way in the key producer nations. “If Indian shrimp is suddenly banned from entering the EU then you run the risk of being unable to bring in any more until the next harvests – so, perhaps May next year.”
This will also depend on how the EU would enact any potential ban; would it arrange for a phasing-in period, so that shipments on the water could arrive, be inspected and delivered as usual? Or would it be an immediate cut-off?
The Global Aquaculture Alliance’s Ian Shone, hosting the retail sourcing panel at GOAL, noted what many UK importers will be feeling: talking about any potential ban is an odd situation, given the very low rate of any instances of antibiotics or chemicals in Indian shrimp reaching the UK.
Blanket measures, supposedly based on EU concerns at antibiotics in farmed shrimp, were imposed almost this time last year; these measures were a move from the inspection of 10% of Indian imports at EU ports, to 50%.
The views of UK importers then no doubt apply still, as a possible ban on all Indian shrimp hangs over the sector.
As Allen Townsend of Iceland Seafood UK told Undercurrent at that time: "The factory in India that we work closely with has four BAP [Best Aquaculture Practice] stars, is BRC [British Retail Consortium] certified, and it’s being treated in exactly the same way as any factories without those.”
One source, preferring to remain anonymous, speaking this time last year said he suspected the EU’s decision was a “rap on the knuckles” for India’s Marine Products Export Development Authority (MPEDA) and EIC, or Export Inspection Council. These sentiments have been mentioned by sources again as the EU apparently considers an outright ban.
“We’ve seen this before – the EU requested that all consignments from Indonesia were tested, to send a message over their sampling techniques,” he said at that time. “I suspect this is to send a message to MPEDA – to have exporters there put pressure on them and make sure the whole system adheres to the EU’s requirements.”
Speaking elsewhere at the conference, Global Aquaculture Alliance president George Chamberlain said India had exported 434,484 metric tons of shrimp in 2016-17, and in 2017 total farmed output is likely to exceed 600,000t, valued at $6 billion.
‘Staring at a ban’
Rahul Kulkarni, director with India’s Westcoast Group, on Sept. 8 confirmed the Indian industry and government were “in the thick of meetings and discussions” around the topic of a potential ban.
“We are really worried over the eventuality of the EU banning Indian seafood imports. It’s more geo-political than actual quality issues, but the sector is suffering and now staring at the ban,” he said.
EU teams are scheduled to visit and audit several plants in the coming months, and the hope is this should allay fears and allow trade to normalize, Kulkarni said.
“The government and the industry has taken this seriously, and a slew of measures have been planned as well as some implemented.”
The Indian shrimp industry has been increasing monitoring of its shrimp exports as it prepares for a visit from an EU delegation in November, Ravi Kumar Yellanki, managing director at Vaisakhi Bio-Resources, told Undercurrent at the recent Aqua Expo Guayaquil in Ecuador.
Contact the author neil.ramsden@undercurrentnews.com