Prices of white-leg shrimp continue to plunge

(VOV) -Local farmers in the Mekong Delta region are suffering huge losses as a global glut of white-leg shrimp has caused the sales price to nosedive 50% over the past year.

In Soc Trang and Bac Lieu provinces, farmers are in mid-harvest of white-leg shrimp, and are worried that the sales price may not cover the cost of production, forcing them out of business.

Ngo Dang Hiep, a shrimp trader in Bac Lieu, said the price of big shrimp (50/kg) now stands at VND120,000/kg, while last year’s figure was VND220,000/kg.

A kilo of smaller 100 shrimp currently sells for VND78,000, almost half of last year’s price (VND150,000), he added.

With such low prices, local farmers are facing heavy losses, which many are financially incapable of absorbing.

Faced with rising input costs for food, medicine and stock, many may be forced to shut their doors.

Leaders of some provincial departments for agriculture and rural development attribute the decreasing price of white-leg shrimps to overabundance of supply in the world marketplace, far exceeding demand.

Bac Lieu Provincial Department for Agriculture and Rural Development Director Luong Ngoc Lan revealed that some Asian markets have remarkably improved their own production of white-leg shrimp. In turn their success has led to reduced import of this product.

In addition, he said, some shrimp importing nations are creating technical barriers that impose increased obstacles, negatively affecting demand and the sales price.