Vietnam shrimp has many export opportunities post Covid-19

VASEP, the Vietnam Association of Seafood Exporters and Producers, reports that among the main export seafood products of Vietnam, while exports of pangasius, tuna and seafood decreased, Vietnam's shrimp exports in the first quarter of this year were still positive. than when growing slightly in the context of the Covid epidemic is still complicated worldwide. If the Covid-19 epidemic is basically resolved by the end of the second quarter of 2020, the world market will reopen, Vietnam shrimp can take advantage of opportunities after the Covid-19 period.

Positive in the US market

The US ranked second in importing Vietnamese shrimp, accounting for 18.4% of the total value of Vietnam's shrimp exports. In the first quarter of 2020, Vietnam's shrimp exports to the US market reached 115.5 million USD, up 18.2% over the same period in 2019.

The Covid-19 epidemic spread widely in the US starting in March 2020, causing the import of goods including shrimp into this market to be delayed. Import demand also decreased due to a sharp decline in consumption in the food service segment due to the US Government's disease control measures. However, the retail system still buys normal goods in order to meet the shortage of goods because American consumers rushed to buy stock from the beginning of the epidemic. While the supply of shrimp from India, Ecuador and Thailand is declining due to national blockade, US customers turn to Vietnam shrimp.

Growth in shrimp exports during the first 3 months of 2020 (Source: VASEP)

Enterprises exporting shrimp to the US should focus on deep-processed and value-added products such as EZ easily peeled shrimp, etc., changing packaging specifications to suit the retail segment.

The largest shrimp supplier to the US is India, which is also a major competitor of Vietnamese shrimp in the US market, which is facing many difficulties due to Covid-19 epidemic. A blockade to limit the spread of Covid in India, which began in March 23 and lasted until May 18, had negatively affected the country's production as March was the peak month for breeding. summer. Shrimp farmers in India have difficulty in supplying and transporting shrimp seeds while the output is clogged, there is no shrimp caregiver because of the blockade, the price of raw shrimp has dropped deeply. Due to the Blockade Order, some Indian processing plants are only able to operate 50% of the number of workers. Raw shrimp prices in India as of April dropped sharply, affecting the psychology of farmers who are hesitant to stock, raw material supplies in India may decrease.

Ecuadorian shrimp exports to the US are also expected to decrease in March 2020 as the country's shrimp industry is operating at only 50% of its capacity in the context of Covid-19 because the number of infections and deaths is still increasing in the country.

►Regardless of the factors that the author of the article describes, Vietnam has an additional advantage over Ecuador and India, which is the high added value and quality with which it processes shrimp.

Shrimp production in the country is heavily affected by the processing companies mainly located in Guayaquil, Guayas province, which is also the center of the Covid epidemic in Ecuador. Some companies are at risk of having to close if the disease situation does not improve. Some processing plants do not buy more raw materials because there are no workers working at the factories due to blockade orders. While the shrimp industry has not received any support from the Government.

Raw shrimp prices increased gradually

After a period of decline due to the impact of COVID-19 epidemic , from early April 2020, raw shrimp prices in the Mekong Delta are gradually increasing again. The inching up of shrimp prices opened favorable expectations for new shrimp production.

At the end of April, the price of white shrimp of 100 pieces / kg was priced from 95,000 - 100,000 VND, compared to 3 months ago, up from 15,000 to 20,000 VND / kg. Black tiger shrimp sized 30 pieces / kg are priced from 200,000 to 230,000 VND, an increase of 30,000 - 40,000 VND / kg.

Intensive shrimp farm ►

The price of whiteleg shrimp in Bac Lieu is now more than VND 20,000 / kg (for small ones). Specifically, white shrimp type 100 / kg cost 90,000 VND / kg for lined pond culture; Shrimp farming in earthen ponds costs from 80,000 to 85,000 VND / kg. Types of large white shrimp increased slightly compared to before: the type 70 shrimp / kg was 110,000 VND / kg; 50 pieces / kg are priced from 120,000 - 125,000 VND / kg.

Although raw shrimp prices have increased more actively, but due to the impact of drought, saltwater intrusion, disease outbreaks on shrimp and complicated Covid epidemics in major consuming markets, people are still hesitant to raise shrimp. . If these points are not controlled, there will be a shortage of shrimp materials when the market recovers.

 ► Farmers harvest shrimp in An Giang Province. — Photo danviet.vn 

The length of the brackish water shrimp crop in 2020 is still long, favorable signs are also starting to appear more and more clearly as the demand for shrimp in the world still exists because shrimp is an essential food, the control of epidemic Covid in China, South Korea is better tend to have more hope for farmers and processing plants when the output is somewhat removed.

In the EU market, Vietnam has a favorable advantage from the EVFTA Agreement, which is expected to take effect in July, especially for shrimp products with tax rates that India, Thailand or other countries do not have an advantage. compete. However, potential risk factors still exist, so processing, exporting and shrimp farmers still need to work closely to overcome difficulties and seize opportunities when the market recovers.

Author: Kim Thu / VASEP

editorial@seafood.media
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