A decade of growth in the shrimp industry has been halted by the emergence of Early Mortality Syndrome (EMS). EMS has been responsible for the largest contraction in industry history for the top three world suppliers – China, Thailand, and Vietnam as well as record prices. Second tier producers not affected by EMS have been seizing the market opportunities and filling the gap in supply. Ecuador, Indonesia, India, Bangladesh and Myanmar have all been rapidly expanding production. India in particular has the potential to increase shrimp production by many times because its geography lends itself to shrimp farming. These opportunities may be short-lived. Thailand, the most technologically advanced of the top three producers is quickly closing in on the cause and treatment of EMS. The current shrimp shortage could reverse itself in 2014. A swing in prices paired with less than market-savvy second tier producers points toward accelerated consolidation through increased intercontinental mergers and acquisitions to form integrated producers.
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