Record high prices of shrimp in the US

(VOVworld) – Shrimp shortage has been pushing shrimp price to the highest level in the US. However, American consumers are likely to pay more if the US Department of Commerce’s decision to impose anti-subsidy duties on imported frozen shrimp takes effect.

Shrimp shortage leads to record high prices

Shrimp shortage leads to record high prices

The price of prawn is 13 USD per kilo, up 56 percent from last year. At some super markets, the price of big-size shrimp even doubles. According to a report issued by Rabobank, the price hike is due to the DOC’s Tuesday announcement on anti-subsidy taxes of around 1-50 percent on shrimp imported from Vietnam, China, Ecuador, India, and Malaysia. The taxes will take effect once the International Trade Commission (ITC) confirms that the domestic shrimp production industry suffers losses as a result of unfair competition by imported shrimp. But the US decided to impose taxes on those 5 countries as from June 4th, 2013. If the ITC’s September 26 ruling is unfavorable for shrimp exporting countries, the prices are expected to further increase because American shrimp suppliers now can only meet less than 10 percent of domestic consumption. The DOC’s decision was made after the Coalition of Gulf Shrimp Industries claimed that the shrimp industry of exporting countries received illegitimate subsidies from their governments, causing losses to the US shrimp producers. The lawsuit is unreasonable as the US biggest importers and distributors such as Costco, Sysco, and Publix Super Markets all said that farm-raised and natural shrimp are different types of products and that they cannot compete with each other. Moreover, statistics over the past 2 years show that the US shrimp industry does not suffer any loss and even has their output and prices rising.
Nhat Quynh, VOV correspondent in the US

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