Higher prices lead to Vietnam’s decreased shrimp exports: VASEP
Higher prices lead to Vietnam’s decreased shrimp exports: VASEP
The higher price of Vietnamese shrimp compared to competitors such as India and Ecuador was one of the key factors in the significant drop in shrimp exports during the first half of this year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
The Vietnamese Ministry of Agriculture and Rural Development reported a 21-percent decrease in seafood exports in June compared to the same period last year, putting the total estimated value at nearly US$800 million.
The decline contributed to a 27-percent year-on-year reduction in January-June seafood exports, which amounted to approximately $4.2 billion.
In line with that downtrend, shrimp exports totaled nearly $1.6 billion in the six-month period, down 31 percent year on year, although the exports in June hit $341 million, marking the highest monthly level achieved in the year to June.
As per VASEP’s analysis, increased preference for imports, particularly from India and Ecuador, was to blame as they have emerged as more affordable food options at a time when the gloomy global economy and rising inflation compel people to cut back on expenses.
These nations have achieved early and successful shrimp harvests in terms of both quantity and size, posing fierce competition to Vietnamese shrimp.
Moreover, they are offering shrimp at lower prices, ranging from $1 to $2 per kilogram, which has made it challenging for Vietnamese shrimp exporters to secure orders.
However, VASEP anticipated that the outbound sales of Vietnamese shrimp products to the U.S. will bounce back from August over this destination market’s rising demand in the year-end festive season.
In the European Union (EU), where India and Ecuador have recently witnessed a surge in exports of processed food, but have still struggled to meet the stringent requirements, VASEP assessed that the opportunity for Vietnam’s processed shrimp to thrive there remains ample.
Evidently, as shrimp harvests in other countries started to dwindle this month, EU importers began to slightly boost their purchase from Vietnam in preparation for the year end, according to VASEP, which also made a similar upbeat forecast for the Vietnamese shrimp exports to China in August.
Vietnam is projected to ship $3 billion worth of shrimp products this year, based on VASEP’s analysis.
