Ecuadorian shrimp exports to Russia

SHRIMP EXPORTS TO

RUSSIASTUDENTS:

•Paola Aguirre•Klever Alvarracin•Kevin Robalino•Wagner Bravo

•Cinthya Briones •Christian Franco•Kevin Soto

LECTURER:Msc. Max Galarza

H.

LOGISTCS TUTORIAL WORK

Grade: 10

INTRODUCTION The ban imposed on the import of

food from western economies will benefit the Russian agricultural market.

Earlier this month, Russia imposed a ban on the import of fruits, vegetables, meat, poultry and fish from the United States and its allies in revenge for sanctions against Moscow for the crisis in Ukraine.

Moscow has been negotiating to find alternative sources of farm supplies, especially Latin America, Turkey, Egypt and China.

ECUADOR-RUSSIAEcuador and Russia are completing a technical cooperation agreement to strengthen science, technology and trade in seafood areas.

Between January and May of this year, Ecuador exported USD 387 million to Russia, 18% more than the previous year sales.

Frozen shrimp is another area that has grown up in the Russian market.

José Antonio Camposano, Chief Executive of Camara Nacional de Acuacultura, said the Russian market have complex terms of payment, the employer should consider this when they are doing business.

PRODUCT CHARACTERISTICS

The Ecuadorian shrimp is known for its exquisite flavor, color and texture, it is recognized as a gourmet product worldwide.

Shrimp

It's a food that has a very low level of fat and calories. Shrimp is rich in components such as omega 3 and vitamin A.

PRODUCTION AND VARIETIES IN

ECUADOR The climatic advantages of the country

allow up to three crop cycles generated per year, and more productive development per hectare.

White shrimp Litopenaeus or vannamei representing more than 95% of Ecuador's production.

The main destination for non-oil exports from Ecuador in 2013 has been the United States, representing about 22.13% of total exports in the period and Russia with a 9.10%

In the European Union Ecuadorian shrimp pays a tariffs of 3.6%. Although thanks to the Generalized System of Preferences (GSP) the country has a tariff reduction of eight points, the same that expires in 2014

39% of Ecuadorian shrimp exports to the world were to Europe, whereas

Asia was 15%

INTERESTING FACTS• According PROECUADOR, Ecuador can bid 400 million

pounds of shrimp annually, including value-added products.• According to the Central Bank of Ecuador (BCE) in January

were sold abroad 20,000 tons of shrimp (about 41 million)• This year, shrimp exports increased by 29.7% compared to

the previous year• Within the non-oil products, shrimp is the second largest

export of the country.

WORLD SHRIMP MARKETSJapan The Japanese market is totally dependent on imported shrimp, and the weaker yen

and rising international prices have contributed to shrinking demand. Demand for raw shrimp is declining, while demand for processed shrimp is increasing.

Processed shrimp imports went up by 2.18% compared with the same period last year.

Europe Sluggish domestic demand, high shrimp prices and short supplies prompted many

European buyers to withdraw from the international market because they were unable to compete with buyers from other countries.

For the first six months of the year total shrimp imports into the European Union declined by 7%.  Imports from Ecuador, the largest supplier, were down slightly by 2.1%.

WORLD SHRIMP MARKETS

•ChinaBuyers from China have been actively buying shrimp from major producing countries in Asia, particularly from India. As a result, shrimp imports into China from January to June 2013 were up significantly over the same period in 2012, up 16.4% with more supplies coming from Asian and Latin American.  Supplies from Ecuador and India increased by 117.6% and 130.8%, respectively.

India:Raw materials shortage because of diminished crops, heavy rains; whitespot disease and the on-going political problems in Andhra Pradesh have badly affected the delivery of shrimp from farms to processing plants.  As a result, ex-farm prices of 30-count per kilowhole jumped to $6.50–$8.20 in August 2013 from $3.30–$4.90 in 2012.

WORLD SHRIMP MARKETS

•Thailand:Thai shrimp companies have been importing raw materials from Ecuador and India to keep their processing plants running.

Vietnam:Despite having similar problem as Thailand, Viet Nam’s shrimp exports generated $1.67 billion for the first eight months of 2013, up 18% compared to the same period in 2012.  

SHRIMP EXPORTATION

The shrimp industry has had interesting developments in exports despite the competition, standing out as a high quality product which has developed a process to achieve high export figures.

REQUIREMENTS TO EXPORT PRODUCTS FROM

AQUACULTURE AND FISHERIES

GET TO THE AUTHORIZATION MAGAP: 1) Ministerial Decision  

2) Effective Production Act

APPROVE THE VERIFICATION: 1) Submit the registration form 11.1, Ministerial

Agreement, Effective Production Act and any document required by the National Fisheries Institute.

2) Verification provides an inspection and technical review process.

OBTAIN CERTIFICATION: Prior to shipment of the product, the exporter should approach the INP to request the issuance of Health Certificate for Verified establishments. 

The INP provides laboratory services for registered users to perform all kinds of quality tests in compliance with the requirements in the countries of destination and their customers: Testing Laboratories Aquaculture Products (EPA), HPLC Laboratories (Prohibited Antibiotics ), Heavy Metals Laboratory, Laboratories of Chemistry, Analysis and Food Microbiology.

REGULATIONS

Importers must complete the declaration of Russian customs for all imported items. The certificate of origin and in accordance with quality standards will also be presented to customs.

Many imported products to be sold in the Russian Federation require a certificate of conformity issued by the Standards Committee of the Russian State, which certifies that products meet ISO-9000 standards. The special rules applicable to certain products like food, are provided by the Ministry of Agriculture.

o Customs Declaration for each import

o Commercial invoice in Russian o Transport document o Packing List in Russian or

English o "Passport" demanded Russian

importers o Health Certificate in Russian o Certificate of origin of the

goods in Russian

DOCUMENTS