Seafood exports growth slows due to global inflation
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Vietnam’s seafood exports have been slowing down since July as inflation takes a toll on consumption in the U.S., E.U. and U.K.
Exports to the U.S. declined by 30.5% year-on-year in July after inflation in that country hit a 41-year high the previous month, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Black tiger shrimp exports were down 69% and that of pangasius fish, 4%. But tuna shipments increased by 34% and that of squid by 90%. But exports were up 30% in the year-to-date.
Exports to the E.U. rose by 18% year-on-year in July, well down from the 31% in the second quarter.
Inflation has been skyrocketing in the bloc, with the Russia – Ukraine tension causing food prices to climb, VASEP said, adding that the falling euro also contributed to declining consumption.
Exports to the U.K. fell by 12% year-on-year in the second quarter and 18% in July, as inflation raged at a 40-year high.
Shrimp and tuna exports were down 27% and 54%.
Exports to China rose by 25% in July, but authorities there are still monitoring the spread of Covid-19 closely at the border and will ban any exporter whose cargo is found infected.
With seafood exports reaching nearly reached $6.7 billion in the first seven months, VASEP is optimistic about achieving $10 billion for the year.
Questions & Answers
Q.What is the primary reason for the slowdown in Vietnam's seafood exports to key markets?
What is the primary reason for the slowdown in Vietnam's seafood exports to key markets?
The main reason is inflation, which is taking a toll on consumption in the U.S., E.U., and U.K. In the U.S., inflation hit a 41-year high, while in the E.U., skyrocketing inflation and a falling euro contributed to declining consumption.
Q.Which specific seafood products saw significant declines in exports to the U.S. And U.K. During July?
Which specific seafood products saw significant declines in exports to the U.S. And U.K. During July?
In July, black tiger shrimp exports to the U.S. Were down 69%, and pangasius fish by 4%. For the U.K., shrimp exports fell by 27% and tuna exports by 54% in July.
Q.How have exports to China performed, and what risk factor does the market present for Vietnamese exporters?
How have exports to China performed, and what risk factor does the market present for Vietnamese exporters?
Exports to China rose by 25% in July. However, Chinese authorities are closely monitoring Covid-19 at the border and will ban any exporter whose cargo is found to be infected.
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