Prices for shrimp from Denmark expected to rise in Russia

According to forecasts, in June 2007 the Russian traders will be facing rising prices for pink shrimp Pandalus borealis exported to this growing market from Denmark.

For example, a Moscow-based importer majoring in coldwater shrimp forecasts a price rise of up to 15-20%.

Prices for shrimp growing more and more popular on the Russian market started to rise in March 2007 and by mid-May 2007 the increase of purchasing prices amounted to 10-15%. The producers claim that the reason behind has to do with large catches of small shrimp with a shrinking share of large sizes.

As per mid-May 2007 prices in Moscow for the most popular count 70/90 fluctuated from RUR76.00 to RUR100.00 per kilo of the products depending on quality. The cheapest shrimp of the above mentioned count is reportedly offered by Raptika as Calori product. It has a larger percent of glazing and its price can go down as far as RUR72.00 per kilo for large volumes. More expensive shrimp should have less glazing with the best percentage of 15-20%.

According to importers, while some time ago the margins in shrimp sales amounted to 8-10%, at present they have shrunk to 2.5-5%. Many companies do not increase product prices in order not to lose customers, they are waiting for the situation to clear up, though market operators say that the price rise should not exceed RUR3.00-7.00 per kilo.