Avanti Feeds


(Sandeep Patel) #1228

US Shrimp import October '17 numbers are out… Stupendous volume growth continues…

Source: https://www.st.nmfs.noaa.gov/apex/f?p=169:2:::NO:::


(Deepak Venkatesh) #1229

Hi

Regards


(Vivek Gautam) #1230

(nil_71) #1231

Thailand suspends import of Indian shrimps
Export of shrimps to Thailand is not taking place for last three months, said the sources. It has also suspended import of shrimps from Malaysia.
Nirmalya Behera | Bhubaneswar I Business Standard
Last Updated at December 7, 2017 18:46 IST

In another setback for Indian seafood exporters, Thailand, an emerging market for Indian shrimp products, has gone for a temporary suspension of import of shrimps from India.

Thailand accounts for about 13 per cent of 1.70 billion dollar exports made to South East Asia. South East Asia has share of about 30 per cent of the 5.7 billion dollar India seafood exports market.

Export of shrimps to Thailand is not taking place for last three months, said the sources. It has also suspended import of shrimps from Malaysia.

The Commercial Section of Royal Thai Consulate - General has confirmed the suspension of issue of import license for five categories of shrimps (Penaeus Esculentus, Fenneropenaeus, Penoeus Vannamai, Pernaeus Monodon, Penaeus Stylirostris).

The action of suspension by the Department of Fishery, Thailand is to prevent the Infectious Myonecrosis (IMNV) spreading as per the guidelines of World Organization for Animal Health.

“Thailand has been a vibrant market with high potential for mutual collaborations in the food processing sector. It is a setback for the seafood industry. It is surprising that the government here is not aware of it”, said Rajen Padhi, director general of Utkal Chamber of Commerce and Industry and a seafood consultant.

This shock has come at a time when the European Union (EU), the third largest market of Indian exporters, has flagged off quality issues with India prompting the former to send an audit team to inspect the facilities here.

There was a growing concern that the EU is seriously worried over the use of antibiotics in Indian shrimps- a fact that has surfaced continuously in its findings. It is also dissatisfied with the response it got from the Indian authorities and is, thus, considering a ban.

Last year, the EU had strengthened its inspection norms for aquaculture products sent from India. Earlier, the norm was testing samples from at least 10 per cent of the consignments, which was enhanced to 50 per cent in 2016.


(Mahendra243) #1232

But avanti revenues mostly comes from shrimp feeds aren’t they? will it have any impact on q3 revenues? also i believe the shrimp capacity expansion will come in from q4 i think which will aid margins and profits?


(rvetri) #1233

EU officials recently visited India and has cleared the quality… No EU ban
in the near future…


(nil_71) #1234

There is no official communication on this. Can you share the source on this? I have not seen any


(rvetri) #1235

I have read this just about 6 - 7 days back. Did not save the link…


(nil_71) #1236

I read in the UnderCurrent news that EU team’s report will take 3 months to come. The report, you saw is just an interpretation of Indian Press. I also saw it. But there is NO Official Press Release from EU as such till date

Indian Press has written - EU team visited Orissa - Paradip and Chennai as part of their visits and they are satisfied. In fact I read in BS that EU team refused to meet any official delegation of Indian Shrimp Exporters.

Now how we interpret the whole thing as an Investor. Up to us.


(yudiagg) #1237

Interestingly - Avanti does not appear to figure any where as a wealth
creator in the enclosed report.


(aanaruna78) #1238

Do we have an official publishment on this statements or some link to support these messages?


(hbpank) #1239

Which Report , looks like you have to attached report ?


(Deepak Venkatesh) #1240

Hi

I guess he/she was referring to Motilal Oswal’s wealth creation study. Available at this link https://www.motilaloswal.com/stock-market-research/Wealth-Creation-Study.aspx

Regards
Deepak


(yudiagg) #1241

That is right. Sorry - I missed attaching the Motilal Oswal report.


(Tolaha) #1242

Global shrimp trader Siam Canadian has confirmed to Undercurrent News that Thailand has stopped importing farmed shrimp from India – as well as Malaysia.

Thai authorities have justified the move by stating the Indian imports risked spreading infectious mionecrosis virus (IMNV), and until further notice the department of fisheries intends to prevent shrimp from here, and Malaysia, entering the country, said Satasap Viriyanantawanit, Siam Canadian’s general manager in Thailand.

“Honestly speaking, I am afraid it is hurting Thailand more than India. I do not support the idea of bringing shrimp from other sources for reprocessing and re-export, however, the matter of fact is Thailand do not have enough supply.”

“Several Thai packers must be scrambling to get enough raw material to meet their break-even,” he suggested.

The Chinese market has become “very aggressive”, he noted. He cited a shrimp broker familiar to the firm that has seen import volume grow 500% year-on-year in 2017.

“Thailand shrimp has become very famous in China. Demands have always been very strong, all year round.” Some brokers based in Thailand and selling to China have also moved from handling fruits to shrimp, he noted.

On top of this, Thai domestic demand is growing too, he said. “There might be less than 50% production for packers to reprocess and export.”

Thai Union Group identifies Vietnam as the third-largest market for Thailand; Viriyanantawanit believes much of this will make its way to China as a final destination too.

“If Thailand allow imported shrimp, it will likely help Thai packers to have some option. For the moment, they do not have any option but to live with local shrimp (which is not enough, and more expensive than Indonesia and India),” he concluded.

China’s own shrimp farmers failed to shrug off disease outbreaks early on in the season, and overall production is estimated to be down in 2017.

Before China’s shrimp season even began a foreboding took hold in the industry about poor quality broodstock. Then, as Undercurrent reported in June, these worries bore out with disease prevalent during the early stages of shrimp grow-out, particularly in the country’s south.

The demands of the Chinese markets have been growing ever stronger in 2017, as remarked upon across multiple species.

High Liner Foods-owned shrimp firm Rubicon Resources recently noted China has been shaking up the global market.

Thanks to its own falling production, ability to offer attractive payment terms and growing consumption, China is entering – and sometimes dominating – shrimp markets around the world, it said

“With cash in hand, Chinese buyers are entering neighboring Southeast Asian countries to directly source massive quantities of shrimp, outcompeting most Western buyers,” it said. It said buyers often buy whole ponds of shrimp at the farm.

“Seafood has always been a large part of Chinese food culture, but a rapidly expanding middle class is taking Chinese shrimp consumption to new heights. Between 2005 and 2015, shrimp consumption in China increased by 123% to over 1.6 million metric tons per year.”


(nil_71) #1243

Just to share the latest details.EU Report will come in Jan 2018 only


(Rajarshi) #1244

Indian shrimp exports set to nearly double to $7 billion by 2022: CRISIL .

Read more at:
//economictimes.indiatimes.com/articleshow/62051234.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst


(tefkot) #1245

Thailand blocking Indian shrimp and China shrimp consumption growing. How this will impact Avanti?
Negative: 1) Indian shrimp export to Thailand will reduce and hence it will have impact on Indian shrimp farming and Avanti’s Indian feed supply.
Positive: 1) Thailand will try to increase shrimp farming faster which may result in more requirement of shrimp feed.
2) Thailand will not able to immidiately cater to Increased Chinese demand there by creating an opportunity for Avanti to sell its processed Shrimp to china and grow rapidly. margins in processed shrimp are higher hence avanti’s profit margin may increase if this happens.
this is my first post and hence is quite amaturish… please bear with it and yur feedback and sugessions are welcome.


(Tolaha) #1246

Feel this is more of protectionism from Thailand rather than actual fear of contamination. Whatever shrimp Thailand imports, I think mainly gets value added for exports. If CP or Thai Union isn’t able to fulfil its contracts from its Thai operations, it will either have to import from elsewhere or have to move these processing operations overseas. Shrimp, I guess, is currently a seller’s market. Where is Thailand going to source their raw materials from, when their own production hasn’t been able to satisfy their operations from many years? So it may not really help Thailand.

Shrimp feeds aren’t exported as far as I know, just raw and processed shrimps.

Agree with your second point. If at all the Chinese start importing from India in a major way, even if not directly from Avanti, it should still benefit Avanti as they have the largest market share in shrimp feeds.

The fear of course is that if India ignores these measures by Thailand by letting this go unchallenged and then the EU too has something negative in their audit, then there would be a major loss of reputation for Indian shrimps.


(Saket) #1247

Crisil has shared this report on 13th Dec 2017:
Indian shrimp exports set to nearly double to $7 billion by 2022
Link to the Report: https://www.crisil.com/en/home/newsroom/press-releases/2017/12/indian-shrimp-exports-set-to-nearly-double-to-dollar7-billion-by-2022.html