Global shrimp demand expected to rebound from Q2
Global shrimp demand expected to rebound from Q2
The price of black tiger shrimp in the first months of the year dropped sharply, causing farmers to suffer heavy losses due to the lack of export orders.
Viet Nam's shrimp exports are falling sharply compared to last year. — Photo vasep.com.vn |
Many seafood enterprises said that there have been no new export orders, so shrimp prices are falling sharply. The price of shrimp has decreased by 30 to 40 per cent compared to the beginning of the year, with the current price at VND85,000 to VND210,000 (US$3.7-$9), causing farmers to lose from VND50 million to VND150 million (US$2,155-$6,465) per tonne of shrimp sold.
According to the Viet Nam Association of Seafood Exporters and Producers (VASEP), last month, shrimp exports only reached $265 million, down 33 per cent over the same period last year.
In the first three months of the year, exports reached USD$600 million, down 37 per cent.
Specifically, shrimp exports to the US, EU and China were down more than 40 per cent and to South Korea and Japan around 20 per cent over the same period last year.
Japan is Viet Nam's largest shrimp export market at 17.6 per cent of total exports. In the first quarter of this year, shrimp exports to this market reached more than $105 million, down 29 per cent over the same period a year ago.
In the first quarter of this year, Viet Nam's shrimp exports to the US reached more than $104 million, down 46 per cent over the same period a year ago. Record inflation, reduced purchasing power, and high inventories from 2022 are all factors that have reduced demand for shrimp imports into the US.
The situation of US shrimp imports from Viet Nam depends a lot on current inventory. If the situation is positive, import demand may recover after the second quarter of this year, according to the VASEP.
Meanwhile, shrimp exports to the EU reached $89 million in the first quarter, down 44 per cent over the same period a year ago. Shrimp exports to the EU are not expected to recover in 2023 due to the impact of the Russia-Ukraine conflict.
VASEP said that the reason for the sudden drop in exports was the sharp drop in international market demand. In EU, purchasing power has been affected by the impact of inflation and uncertainties related to the Russia-Ukraine conflict, while the US is in oversupply. According to data from the National Oceanic and Atmospheric Administration (NOAA), US shrimp imports in December 2022 hit a 10-year low.
In addition, Viet Nam is facing increasing competition from rival suppliers such as Ecuador and India.
Viet Nam's shrimp sector still faces many difficulties and challenges in both input and output related to seed quality, disease control, the ratio of farming areas and product that sometimes does not meet GAP standards. The production cost of shrimp in Viet Nam is still much higher than that of Ecuador and India.
In order to increase competitiveness and increase exports, enterprises need to optimise costs, focus on developing added value, improve product quality, and actively change product structure to meet the needs of each market segment. In addition, businesses also need support from the government in terms of technology transformation and capital.
