Shrimp firms cash in on higher demand and price
Shrimp exports in the first half of this year amounted to US$1.1 billion, a rise of 8.6% over the same period last year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
The major import markets including Japan, the US, China and Canada saw a rapid increase in price, which contributed a lot to the overall rise in export value.
Domestic shrimp production has also recovered from the damage caused by diseases in 2012, which are presently being eradicated, the association says.
While Early Mortality Syndrome (EMS) in shrimp still badly affects many other Asian countries such as Thailand, with its shrimp output expected to fall by 50% over last year, this provides opportunities for Vietnamese shrimp producers to make a breakthrough.
Exports to Japan, the biggest importer of Vietnamese shrimp, have recovered, generating US$293.9 million in value in the first six months of this year, a rise of 6.6%.
Shrimp exports to the US also rose by 22.4%, earning US$253.3 million.
However, difficulties remain for shrimp exports to some markets such as the Republic of Korea with the application of the Ethoxyquin test or to the US that applies an anti-subsidy tax.
Industry insiders have urged Vietnamese businesses to try and expand their current markets in North America, the Middle East and Asia.
China, with its huge population holds a vast potential market for Vietnamese shrimp exports. In the first quarter of this year, China passed the EU to become the third largest importers of Vietnamese shrimp, with a monthly growth rate of 7.3-9.7%.
Experts also predict that China will continue to be the world’s biggest importer of seafood for the next 10 years, with a potential import value of up to US$20 billion.
Malaysia also has a lot of untapped potential as the country’s supplies of shrimp fell from 90,000 tonnes to 60,000 tonnes in the year’s first quarter due to diseases, forcing the country to import shrimp to meet consumer demands.
VASEP Chairman Truong Dinh Hoe has forecast that shrimp exports will hit US$2.4 billion for the full year, 6.5% higher than last year.
He urged exporters to work closely with farmers to ensure supplies of high quality shrimp, which will help to overcome technical barriers set by overseas import markets.
Vietnam mainly exports white shrimp and black tiger shrimp, which made up 41.3% and 50.8% of total export turnover respectively.