Shrimp remains one of Indonesia’s main export commodities. In 2024, Indonesia’s performance as a shrimp remained in fourth place, just like in 2023.
What factors determine Indonesia’s position in the global shrimp export competition map? Find out more in this article.
Brief Overview of the Global Shrimp Industry in 2024
The image above shows the global shrimp industry condition in 2024. The top ranking is still held by Ecuador with the total shrimp export of 1,211,624 tons, followed by India with 733,148 tons, and Vietnam with 239,714 tons. Indonesia ranks fourth with a total export of 202,464 tons.
Factors that Affect Indonesia’s Position
In recent years, Indonesia has experienced a decline in shrimp export volumes. One of the most significant decreases occurred from 2022 to 2023, with a drop of 9%. Export volume in 2022 reached 231,413 tons, falling to 209,066 metric tons in 2023. One contributing factor to this decline was the shrimp oversupply that began in early 2022, which impacted Indonesia’s export performance.
During this period, Indonesia’s shrimp exports to the United States (US) also declined, despite the country’s heavy reliance on the US market. This dependency has been further challenged by the imposition of antidumping duties over the past year, which has posed a serious challenge to Indonesia’s shrimp export dynamics. Indonesia’s shrimp exports continued to fall in the first quarter of 2024 by 8%, followed by a 12% year-on-year decrease in the second quarter (Van der Pijl, 2024).
Additionally, Indonesian shrimp is known to be relatively more expensive. One of the reasons is the higher production cost compared to the leading producer, Ecuador. In 2023, Indonesia’s production cost ranged between USD 2.5–3.5 per kg, whereas Ecuador’s was lower at USD 2.2–2.4 per kg.
Analysis of Indonesia’s Ranking
Indonesia's decline in ranking as a shrimp exporting country is influenced by its dependence on the US market. In early Q3 2024, Indonesia's shrimp export volume showed a temporary increase of 5%. Although challenges remained, the tariff rates imposed by the US at the time were not as high as initially anticipated.
Additionally, top-ranking countries like Ecuador and India continue to maintain a competitive edge in shrimp production, which strengthen their positions and advantages that Indonesia has yet to surpass. According to Nikolik (2024), Ecuador remains the world’s fastest-growing shrimp producer, with the most significant growth occurring in 2022 (reaching 15%).
Meanwhile, according to the Shrimp Insights report (2024), India’s shrimp exports grew by 3% in 2023 and recorded a 5% increase in H1 2024 compared to the same period in 2023. India’s shrimp supply has been steadily rising in response to improving demand.
Challenges Faced
1. Finding new export markets
The first challenge faced by Indonesia in order to reach a higher ranking in the global shrimp exporter map is finding new export markets. Based on the data presented above, Indonesia’s over-dependence on the US market makes its ranking more easily influenced by declining US shrimp import and consumption trends.
2. Boosting production
Indonesia's shrimp production also needs to be increased to improve its ranking in the export market. This increase also needs to be followed by strict quality control, enabling Indonesian shrimp products to compete globally.
Strategies to Improve Ranking
To address the challenges mentioned above, Indonesia can look to other countries that have the potential to become export destinations. This consideration needs to be based on export and import regulations, economic conditions, the types of products needed, and logistics fees.
However, efforts to open new export markets must be followed by improving product quality standards, especially in the post-harvest stage. Additionally, strong branding is necessary to compete with competitor countries.
At the farm level, increasing production must also be balanced with environmental control so that cultivation is not only productive and profitable but also sustainable. Regular data recording and monitoring can help farmers evaluate farming performance, predict potential disease occurrences, and make the best decisions for the next farming cycle.
Conclusion
Indonesia currently ranks fourth in the global shrimp exporter competition. Factors such as issues of dumping allegations and countervailing duty petitions, over-dependence on the US market, and the advantages of competitor countries hinder Indonesia from reaching a higher ranking. Therefore, it is important for all parties involved in the shrimp industry to work together to increase high-quality shrimp production while seeking potential new export markets.
Are you involved in the shrimp industry and want to learn more about the condition of the Indonesian shrimp industry to plan the best strategies for your farming or business? Find more information by downloading the Shrimp Outlook 2025 report and gain in-depth insights into the shrimp industry!
References
- Nikolik, G. (2024). Global Shrimp Aquaculture Production Survey and Forecast. Rabobank.
- van der Pijl, W. (2024). H1 2024 Shrimp Trade Statistics Update. Shrimp Insights.
