Shrimp demand is considered soft amidst abundant supply. Chairman of Sao Ta Seafood JSC forecasts the supply might rise around 4% as compared to 2023, making market price increase in vain.
According to VASEP, Vietnam achieved USD 686 million from exporting shrimps, up 14% from the same period last year. However, the recovery rate stayed modest due to such a low base level last year. In Q1/2023, shrimp exports declined by 39% as compared to the same period last year.
Consecutive decline by 2% – 14% was recorded in main markets such as Japan, Korea, and the EU over the first quarter of the year.
Amidst such a difficult situation, enterprises are embracing themselves with countermeasures. The General Director of Minh Phu Seafood Corporation said that to increase orders, the corporation has been participating in international fairs, exhibitions to showcase their products and reach consumers. The latest event was the Boston International Seafood Show in the USA, and upcoming events will be in Japan and South Korea.
Besides, Minh Phu is pushing to reduce shrimp farming costs to compete with Ecuador.
“We are applying advanced technology in shrimp farming to compete against Ecuador. However, it takes time to introduce this technology to affiliated shrimp farming households. If it is applied by Minh Phu but affiliated units, the plan to reduce shrimp farming costs will not work”, shared Quang.
Chairman Hồ Quốc Lực of Sao Ta said that the company’s Vinfarm in Vĩnh Thuận had been put into operation since July 2023, expanding the farming area by 203 ha, bringing the total farming area up to 525 ha, producing 16.000 tons of shrimp materials per year. When this farm is fully operated, the company will be more self-sufficient in raw shrimp.
Sao Ta’s representative hopes the Japanese market will recover soon, besides, the company is seeking opportunities in China.
“We have not entered into any contracts to sell shrimps to China, but we are working with it. We see China as the most potential market and are confident that we can penetrate this market in the future. However, we can not confirm the exact timeline as it depends on accessibility and business opportunity”, he shared with shareholders.
Trần Bé Sáu, CEO of Viet-Australia Seafood (Bac Lieu), also acknowledged that the export market is facing many difficulties. He stated that the company will actively seek potential partners and expand the market to increase export revenue. Alongside this, the company will invest in technology, equipment upgrades, and expand production scale to enhance quality, increase value, and improve the competitiveness of exported products.
VFM
