DNVN - The sharp downward trend in raw shrimp prices in the Mekong Delta provinces since May has caused the shrimp industry to face additional challenges.
Raw shrimp prices drop sharply
Figures from the Vietnam Association of Seafood Exporters and Producers (VASEP) show that in the first five months of this year, Vietnamese enterprises exported shrimp to 103 markets, bringing in 1.3 billion USD, up 7% over the same period last year.
However, the shrimp industry continues to face many challenges as the world economy shows no signs of recovery and inflation remains high.
In particular, the price of raw shrimp in the Mekong Delta tends to decrease sharply. According to VASEP's record on shrimp prices on June 12 in Kien Giang province: black tiger shrimp decreased by 30,000 - 40,000 VND/kg depending on size compared to 1 month ago. Specifically, black tiger shrimp of 20 - 30 pieces/kg were bought by traders at 250,000 VND/kg, a decrease of about 40,000 VND/kg. Black tiger shrimp of 50 pieces/kg was priced at about 130,000 - 135,000 VND/kg a month ago, now down to 95,000 VND/kg.
Traders bought 100-count white-leg shrimp at 66,000-70,000 VND/kg, down about 20,000 VND/kg. 50-60-count white-leg shrimp at 73,000 VND, down 30,000 VND/kg. 70-80-count white-leg shrimp at 70,000 VND/kg, down 25,000 VND/kg.
The shrimp industry continues to face many challenges, including a sharp drop in raw shrimp prices.
Similarly, the price of white-leg shrimp in the provinces of Ca Mau, Bac Lieu, Soc Trang, Ben Tre, etc. is also low, down sharply compared to the beginning of the year.
Explaining the reason for the sharp drop in shrimp prices, some businesses and traders said it was due to supply exceeding demand. In addition, shrimp is in season, the weather is favorable so the harvest is large. At the same time, companies purchasing shrimp for export have reduced output. Shrimp export activities of businesses also face many difficulties due to slow market demand, supply chain congestion due to increased freight rates and lack of containers, and tension in the Red Sea.
Meanwhile, shrimp prices from India, Indonesia, and Ecuador are offering low prices. World market prices remain low and Ecuadorian shrimp continues to be sold at increasingly low prices.
According to VASEP, raw shrimp prices from major suppliers around the world have all decreased. In particular, raw shrimp prices in China in week 25 (from June 17 to 23) fell to near a decade low due to seasonal peak production. Shrimp size 60/kg decreased by 22% and shrimp size 80 decreased by 25% compared to the previous week.
Ecuadorian shrimp prices in week 24 (June 10-16) were around $3.9/kg for 20/30 and $3.5/kg for 30/40. Prices for 40/50, 50/60, 60/70, 70/80 and 80/100 shrimp remained unchanged at $3.3/kg, $3.15/kg, $2.8/kg, $2.3/kg and $1.9/kg, respectively.
Excess supply causes prices to drop sharply, which also affects farmers' profits and ability to maintain sustainable operations.
VASEP believes that shrimp prices in the coming time are unclear, because besides market demand factors, they also depend on the main crop of shrimp powerhouses such as Ecuador, India, and Vietnam. Ecuador is even more difficult to predict because they can raise shrimp all year round.
According to some businesses, it is still uncertain whether shrimp prices will increase again. However, the possibility of shrimp prices decreasing further is very unlikely, because recently some businesses have increased their purchasing prices, although not many. This shows that businesses still have a need to purchase raw shrimp. Raw shrimp prices are likely to increase again by August at the latest when the main harvest season in the world's supply sources has passed, and demand from markets is more positive in preparation for the end of the year.
Need to promote production linkage model according to value chain
Authorities have recommended that farmers stabilize their mentality, avoid massive shrimp harvesting, maintain stable stocking with lower density, extend the farming time to increase the size of large harvested shrimp, ensure quality, food safety, increase selling price, thereby increasing investment efficiency.
Or it is possible to increase the farming density to increase the harvest yield, gradually harvest, the remaining quantity in the pond will have a favorable environment to grow faster. Actively coordinate with relevant agencies and units to grasp the situation of raw shrimp price developments, analyze the production efficiency of each harvested shrimp size, and forecast the demand developments of the consumer market.
In the long term, VASEP believes that in order to reduce production costs and create new momentum for shrimp, helping shrimp farmers ensure profitable production, promoting production linkage models according to the value chain must receive more attention.
Along with that, there is a strategy in developing the food processing industry, materials for shrimp farming, aiming for self-sufficiency. At the same time, constantly improving the farming process, strictly controlling the quality of seeds, materials and especially managing the environment well to aim at forming and building modern, sustainable shrimp farming models, low production costs and bringing high profits to shrimp farmers.
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Source: https://doanhnghiepvn.vn/kinh-te/gia-giam-manh-nganh-tom-doi-dien-them-thach-thuc/20240701090355454
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