Shrimp prices have fallen while the prices of other commodities used in shrimp farming have been adjusted up every few months, forcing many farmers to either suspend their farming or raise their shrimp in moderation to wait for the price to rise.
Processing shrimp for export at Thai Minh Long Company (Gia Rai Town). Photo: CL
Raw shrimp prices continue to fall
While rice farmers are currently happy because rice prices are continuously increasing, shrimp farmers have the opposite feeling. Because, over the past 3 months, raw shrimp prices have continuously fallen. Meanwhile, according to shrimp farmers, in addition to the continued increase in input prices, this year's shrimp crop is also very difficult to raise. Mr. Tran Van Tan (Vinh Hau A commune, Hoa Binh district) shared: "Since the beginning of the year, although shrimp farming has had fewer diseases than previous crops, due to low salinity, shrimp grow slowly. In addition, production costs have increased while shrimp prices have decreased, so even though shrimp farming is successful, many households still do not make a profit, and even lose money on labor." For shrimp farmers, stopping farming and "hanging up ponds" means that the family's main source of income will be cut off. Therefore, many households choose to raise shrimp sparingly or switch from white-leg shrimp farming to black tiger shrimp farming to reduce costs and prolong the time waiting for shrimp prices to recover.
Thanh Cong Moi Industrial Shrimp Farming Cooperative (Vinh Moi Hamlet, Vinh Thinh Commune, Hoa Binh District) with more than 30 members used to help many members develop their economy and become well-off, but at this time, many people are losing money and have to find other ways to make a living. Mr. Nguyen Van Lap - Head of Thanh Cong Moi Cooperative said: "Out of more than 30 members of the cooperative, now more than 10 people have "suspended their ponds", some have sold their land to pay off debts, some have had to go far away to find hired work. If shrimp prices continue to fall and stay at the current low level, it is certain that more and more households will "suspend their ponds" because they no longer have capital to reinvest and raise new ones".
According to shrimp businesses, the shrimp consumption market this year is full of fluctuations. Not only achieving high output, countries such as Ecuador, India and Indonesia also produce a lot of large shrimp. This is the reason why large-sized whiteleg shrimp has not been able to maintain good prices in recent months. Meanwhile, the low production cost makes the selling price of raw shrimp in these countries very competitive.
Expectations for the year-end market
Over the past week, the price of shrimp purchased by traders has increased, although not much, but it is a positive signal for shrimp farmers to have more motivation to continue farming with the hope that shrimp prices will gradually recover. Specifically, the price of whiteleg shrimp purchased by traders at the pond is 145,000 VND/kg for the 30 shrimp/kg type. The 40 shrimp type costs 117,000 VND/kg, the 50 shrimp/kg type costs 105,000 VND. With this price, each kilogram has increased by 2,000 - 5,000 VND compared to last week. It is forecasted that the world's shrimp supply from now until the end of the year may be limited, while importers have reduced inventories quite a lot and the Christmas and New Year holiday season is also approaching, so importers will certainly increase imports, thanks to which shrimp exports will gradually recover. According to Mr. Truong Dinh Hoe - General Secretary of the Vietnam Association of Seafood Exporters and Producers: "We have reason to be optimistic, but we should only be a little optimistic, with the hope that shrimp exports for the whole year of 2023, although difficult to achieve as expected, will still reach at least about 3.5 - 4 billion USD, which is considered a success". What Mr. Hoe predicted also opens up a ray of hope that shrimp prices will improve in the last months of the year. That is also the wish of shrimp farmers so that they have more motivation and confidence in the new farming season.
Through discussions with many shrimp farmers, traders, and shrimp purchasing agents, they all have the same opinion that shrimp prices will continue to increase in the remaining months of 2023. Because, currently, processing and exporting companies have almost completed orders signed since the beginning of the year and started receiving new orders. In addition, countries with developed shrimp industries such as India, Ecuador, and Indonesia are cutting farming areas or are affected by the El Nino phenomenon, so shrimp output is also decreasing. However, this is only a forecast because everything depends on many factors affecting shrimp prices such as: inventory situation in countries until the third quarter, domestic shrimp output, how much or how little the recovery ability of major economies is... "We recommend that shrimp farmers raise sparsely, spread out crops according to the size ordered by the factory. Moreover, it is necessary to increase participation in new-style cooperatives and cooperatives to buy and sell together to be able to gain a foothold in the market. "Current market price situation is a challenge but also an opportunity for businesses and shrimp farmers to reorganize production, thereby being able to compete with the world market," said Mr. Luu Hoang Ly - Director of the Department of Agriculture and Rural Development.
Chi Linh
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