Vannamei shrimp is one of Indonesia’s most popular fishery commodities to be exported. With a high market demand, vannamei shrimp has a promising economic value, thus farmers who successfully export their shrimp can reap huge profits.
How is the prospect for Indonesia's shrimp exports to the global market and how to export vannamei shrimp? Read more in the following article!
How is the Prospect for Vannamei Shrimp Export?
Vannamei shrimp export is a relatively promising business due to the following reasons:
- Relatively short cultivation time of only 3 months
- Vannamei shrimp has a high survival rate
- Flexible and broad market share for various sizes
According to the Global Seafood Alliance (2023), world shrimp production is predicted to increase by about 4.8 percent in 2024, reaching a total volume of more than 5 million tons. In Indonesia itself, vannamei shrimp has contributed 36% of the total Indonesian fishery export commodities.
Where is Vannamei Shrimp Commonly Exported?
Based on data from the Fish Quarantine, Quality Control, and Fishery Product Safety Control Agency (BKIPM), in 2022, 81.82% of Indonesian shrimp products in packaging and 59.28% of processed shrimp products were exported to the US.
Until now, the US remains the main focus of exports from Indonesia, followed by Japan as the second largest export destination. In terms of potential, Indonesia can look to other promising countries as export destinations.
Meanwhile, it is also necessary to ensure that farmers improve the quality standards of their products to compete with competitor countries. Currently, Indonesia's strongest competitors in exporting shrimp include Ecuador, India, and China.
How to Export Vannamei Shrimp?
1. Completing Formal Documents
The first step in exporting vannamei shrimp is to ensure the completeness of the required documents. Some commonly required documents include:
- Invoice
- HACCP (Hazard Analysis Critical Control Point) certification of at least Grade B
- NIB (Nomor Induk Berusaha/Business Identification Number)
- SIUP (Surat Izin Usaha Perdagangan/Trading Business License) in Processing
- SKP (Surat Ketetapan Pajak/Tax Assessment Letter)
- Internal Audit Records
- Application Letter for Registration Number
- Statement of Registration Number Utilization
- Industrial Permit Letter from the Department of Industry
- Trading Business License from the Trade Department
- Customs Identification Letter or shrimp export NIK
2. Determining the Price
The right price will make your exported vannamei shrimp more desirable in the market. Conduct a survey to see the prices of vannamei shrimp from other exporters to set a price that is not too cheap but also not too expensive to compete in the market.
Some factors that affect prices include quality, shrimp size, and processing level. Therefore, quality is very important and needs to be considered by exporters to obtain good prices and compete in the global market. The quality of shrimp products is related to freshness, color, and texture.
In addition, prices can also be influenced by demand. If demand in the global market is declining, prices will certainly decrease. Demand is influenced by consumer lifestyles in the destination country as well as the level of shrimp production in that country.
3. Choosing the Distribution Channel
Vannamei shrimp exports can be done by sea or air. To reduce costs, you can choose the sea route using cargo ships. Here are the steps if you choose the sea distribution route:
- Notify customs to the government with the required Export Goods Notification (PEB) and other supporting documents
- Obtain NPE (Export Approval Note) documents
- Ship the shrimp within the cargo
- Insure the shrimp to be exported
4. Packing the Shrimp
Vannamei shrimp must be packed properly to maintain its quality until it reaches the destination export country. Ensure that the shrimp is neatly packed using packaging materials resistant to temperature and humidity changes. Use ice or cold storage to keep the shrimp at a cold temperature.
Additionally, include clear labels on the packaging with accurate information about the product name, net weight, expiration date, and country of origin to facilitate product identification in the destination country. Follow the recommended packaging guidelines in the destination country. This will help protect your shrimp from damage during shipping.
5. Determining the Marketing Strategy
To ensure the shrimp you export can be successfully sold abroad, you need to determine the marketing strategies to be implemented. For example, you can form partnerships to carry out effective promotions. Usually, partnerships are done with agents or traders who can connect you with shrimp buyers abroad.
Conclusion
Vannamei shrimp has good prospects for export to various countries. To export vannamei shrimp, here are the steps to pay attention to:
- Completing formal documents
- Determining the price
- Choosing the distribution channel
- Packing the shrimp
- Determining the marketing strategy
However, it should be noted that efforts to export vannamei shrimp must be balanced with shrimp sales in the local market. This is to prevent excessive dependence on the export market, so that farmers will not be too affected if the global shrimp demand declines.
To produce shrimp well-suited for export, farmers need to implement the right cultivation strategies. Make sure to routinely record and monitor your cultivation with JALA App. This way, you can understand the cultivation conditions and take the right steps for cultivation success.
Haven’t registered on JALA App yet? Join now through app.jala.tech or download the mobile application on Google Play Store or the App Store!
