Sao Ta shrimp consumption hits record high in first 7 months of the year, sales reach over 31 million USD

Sao Ta shrimp consumption is highest since the beginning of the year

Sao Ta Food Joint Stock Company (HoSE: FMC) has just announced its sales for July 2024. Accordingly, the company's sales this month reached 31.25 million USD, up 9% over the same period. This is also the month with the highest sales since the beginning of the year.

In July alone, Sao Ta's finished shrimp production reached 4,098 tons, up 75%; finished shrimp consumption was 2,713 tons, up 7% over the same period. Regarding agricultural products, production decreased by 70% to 20 tons; consumption reached 147 tons, down 22% compared to July 2023.

Accumulated from the beginning of the year until now, the company's sales are estimated at 126.25 million USD.

Sao Ta shrimp consumption hits record high in first 7 months of the year, sales reach over 31 million USD

Sao Ta said that in the first 7 months of the year, the output of processed shrimp and consumption increased thanks in part to self-farmed shrimp and stable consumption contracts. Sales increased less than consumption output due to smaller shrimp sizes and lower unit prices compared to the same period last year.

Regarding farming, Sao Ta said that the main farming area is in the process of harvesting and will last until the end of August, after which the company will release the next crop. Sao Ta assessed that this crop has good productivity but the price of commercial shrimp is low.

As of July, shrimp farming at the new farm has been harvested and is being harvested at the old farm, expected to be completed by mid-September. According to the plan, shrimp will be stocked for the next crop in the fourth quarter when the weather is less rainy to reduce risks.

Proactive in the face of difficulties, Sao Ta strives to exceed the target...

Facing many difficulties, Sao Ta affirms that it is always proactive in having its own strategy.

In 2024, Sao Ta Food also determined that this will be another difficult year for the shrimp industry. In this situation, in addition to focusing on important markets, Sao Ta Food will continue to develop deeply processed shrimp products.

Sao Ta Food has built a business plan this year with a target of net revenue of VND 5,187 billion and consolidated profit before tax of VND 320 billion, up 2% and 5% respectively compared to the actual level in 2023. The company's processed shrimp output in 2024 is expected to reach 22,300 tons, up 5.2% compared to the 21,198 tons recorded last year.

Facing many difficulties, Sao Ta affirms that it is always proactive in having its own strategy. For example, although the US market has a large consumption capacity, Vietnamese shrimp is at a disadvantage in competing with cheap shrimp from Ecuador and India and recently, freight rates have increased sharply. Therefore, Sao Ta plans to reduce the proportion of exports to this market, focusing on markets such as Japan, Korea, Australia, China, etc. In addition, Sao Ta will be proactive in farming activities, proposing farming and harvesting solutions, to sell at better prices.

At the 2024 Annual General Meeting of Shareholders, when sharing with shareholders about the anti-subsidy lawsuit against the shrimp industry from the US market, Sao Ta's leaders assessed that this is a complicated and unprecedented issue. Therefore, "in the immediate future, the company will focus on selling to the US products that are not subject to tax or products that are subject to tax but sell at good prices."

According to Sao Ta's leader, the US anti-subsidy tax rate on Vietnamese shrimp is still lower than that of other countries, however, this is the announced level, the final tax rate is expected to be finalized in August-September 2024. If Vietnam's final anti-subsidy tax rate is still lower than that of other countries, this is an advantage for Vietnamese shrimp.

The subject of anti-subsidy tax is similar to anti-dumping activities, in which breaded shrimp and fried shrimp are not subject to tax.

Sao Ta Food's Board of Directors said it has prepared the best documents to explain to the US Department of Commerce (DOC) if requested.

Source: https://danviet.vn/tieu-thu-tom-sao-ta-cao-ky-luc-7-thang-dau-nam-doanh-so-dat-hon-31-trieu-usd-20240803094514091.htm