Shrimp exports sink in volume, value
(VOV) - The latest statistics from the Ministry of Agriculture and Rural Development (MARD) show that in the eight months leading up to September shrimp exports spiralled downwards 17.5% year-on-year to US$4.13 billion.
Volatility in currency exchange rates against the US dollar significantly impacted shrimp exports MARD reported and were a significant factor in causing Vietnamese shrimp sales in the eight months to plummet in both volume and value.
Outbreaks of Early Mortality Syndrome (EMS) in the eight months January-August also sent the industry into a tailspin with infected shrimp ponds having experienced high levels of mortality— in some cases reaching as high as 100%.
As a result of volatile sales prices and higher feed costs brought about by the currency rate changes and disease many farmers simply opted to get out of the market in the early months of the year, drying up inventories.
Markets around the globe experienced startling drops in shipments MARD reported, with exports to the US market dropping 29%, Japan down 11% and the Republic of Korea (RoK) off 10%.
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At the current pace, it is most unlikely shrimp exports will hit the export target of US$8 billion for the year.
In addition, stiff competition from Thailand and India have fundamentally knocked the wind out of the sails of Vietnamese shrimp farmers, who quite simply cannot compete either on cost, quality or sales prices.
“Although Vietnam is the third largest exporter of shrimp on the global market, we cannot compete with the sales prices of neighbouring India and Thailand,” said General Director Tran Tan Tam of the Vietnam Seafood Corporation (VSC).
Professor Ph.D. Bui Chi Buu from the Agricultural Science Institute Vietnam in turn said Vietnam must change its farming models to improve the overall quality and value of shrimp, or the industry will be doomed.
Buu said one way Vietnam in combating EMS is by introducing extensive farming, or what might be considered ranching, of shrimp.
Under this method, shrimp larvae are released into canals of the Mekong delta, streams, or mangrove areas in the south of the country, to feed themselves and later harvested.
This method has been gaining in popularity and success, Buu underscored.