Shrimp exports set for difficult year
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Vietnam’s shrimp exports face challenges with prices decreasing and competition from Ecuador and India intensifying, according to the Vietnam Association of Seafood Exporters.
Global prices have decreased since the second half of last year and are expected to fall further this year as supply rises sharply to six million tons, VASEP general secretary Truong Dinh Hoe said Friday at a shrimp industry conference.
VASEP general secretary Truong Dinh Hoe says shrimp exporters face fierce competition from Ecuador and India this year. Photo by Anh Minh
The U.S. has extensive shrimp inventories, and so is sure to reduce imports in the first half of this year.
When it increases imports in the second half, it will likely opt for small shrimp from Ecuador because of its abundant supply and geographical proximity.
Vietnamese exports to European markets will be affected by the economic turmoil there.
Le Van Quang, chairman of Minh Phu Seafood Corp., said Vietnamese shrimp costs are too high due to low aquaculture productivity, making it difficult to compete with Ecuador and India.
“Our shrimp farming success rate is less than 40%. It is over 90% in Ecuador and more than 60% in India.”
According to the Directorate of Fisheries, the shrimp output this year is likely to be 1.08 million tons, and exports will fetch US$4.3 billion.
But VASEP forecast exports to be worth only $4 billion out of total seafood exports of $10 billion.
Last year shrimp exports had risen by 11% to $4.3 billion.
Questions & Answers
Q.What are the main reasons for the expected decrease in global shrimp prices this year?
What are the main reasons for the expected decrease in global shrimp prices this year?
Global prices have been falling since the second half of last year, and this trend is expected to continue. A sharp increase in supply, anticipated to reach six million tons globally, is a key factor driving this decrease.
Q.Why is Vietnam facing stiff competition from Ecuador and India in the shrimp market?
Why is Vietnam facing stiff competition from Ecuador and India in the shrimp market?
Ecuador and India have higher aquaculture productivity and lower production costs, making their shrimp more competitive. Vietnam's shrimp farming success rate is significantly lower, leading to higher overall costs.
Q.How will the US market impact Vietnamese shrimp exports this year?
How will the US market impact Vietnamese shrimp exports this year?
The US has large shrimp inventories and will reduce imports in the first half of the year. When imports resume in the second half, the US will likely favour small shrimp from Ecuador due to its abundant supply and geographical proximity.
Q.What is the updated export forecast for Vietnam's shrimp industry for the current year?
What is the updated export forecast for Vietnam's shrimp industry for the current year?
VASEP now forecasts shrimp exports to be worth only $4 billion this year. This is a downward revision from the Directorate of Fisheries' earlier projection of $4.3 billion.
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