US shrimp market seems to be reviving in last 3 months, although realizations continue to be on the lower side. It looks like shrimp sector has bottomed out. Concall notes below.
FY24Q2
- Present RM price: 138/kg fish meal (vs 127/kg last quarter), 54/kg soyabean (vs 54/kg last quarter), 29/kg wheat flour (33/kg last quarter)
- Shrimp processing capex (will get 10 cr. state government support in this capex)
- US shrimp import market has seen improvement in past 3 months after 13 consecutive months of YOY decrease. However, realizations are lower by 10-15%
- Petcare: technical know-how will come from Bluefalo Pet Care Thailand, Avanti will hold 51% in this JV. Expect commercialization in by Jan 2025
- US Countervailing Duty: Being proposed on shrimp exporers from India, Ecuador, Indonesia, Vietnam. In Indonesia and Ecuador, there might even be Antidumping Duty
- Ecuador has a lower cost of production of processed shrimp as processors there are large vertically integrated companies. Additionally, they have become the biggest producer of shrimp in past 2 years (from production of 600 mn to 1.5bn now). Ecuador focuses on commodity products like headless shell on or head on, shell on shrimp
Disclosure: Invested (position size here, no transactions in last-30 days)