This post mostly talks about negatives floating around in the aquaculture news media about quality of shrimps exported to EU from India and off late it seems to be increasing. I request VP community to please share your views.
It appears that European Union has been complaining about the antibiotics in the shrimps since long time and now they are planning to audit the control process sometimes in end of November. Some of the media articles says it is a biennial event and visit by EU panel is part of a routine.
My point is but the audit event still needs to be watched closely right as any negative outcome like a ban or increase in inspection rate to 100% (currently it is 50% since Oct 2016, before that it was just 10%) may have repercussions on the whole industry and Avanti being one of the leading exporters it would have an impact irrespective of the quality of Avanti shrimps. EU is contributing to around 18% of exports it may not be a huge impact but it can still make a dent to the India’s new found and growing shrimp industry.
There is a bigger concern (thought it may be a stretched view but it is better to remain informed even if it’s remote possibility) that a ban by EU may influence US authorities to follow the suit.
“If the U.S. FDA decides to align itself with the E.U., which is what it’s threatening to do, we will have a really serious problem,” he said.
This can be a big worry if it happens though please note it’s definitely more of a speculative view.
On the positive side Ministry of agriculture seems to be working aggressively with different departments on how to contain the issues
I’m trying to see on the other side as it seems there hasn’t been much discussion happened on this front and it would be good to know thought of VP community and seniors on the same.
Disc: Avanti is part of my long term portfolio and forms major portion of it. No transactions in last 90 days.