Minh Phú Corporation refocuses on selling large-sized shrimp to the U.S and Europe

According to Seafoodsource, Minh Phú Corporation is concentrating on manufacturing large-sized shrimp amidst the lockdown of the COVID-19.

In early September, Mr. Lê Văn Quang, General Director of Minh Phú Corporation, noted that the operation of factories in Cà Mau only constituted 23% of capacity. Moreover, Minh Phú Hậu Giang factory also made up for 22% of capacity due to the social-distancing and “3 on-site” regulations.

Mr. Quang said that the company was focusing on processing large-sized shrimp (10-45 shrimps/kg) thanks to the European market’s preference. 

Mr. Quang said: “The demand for large-sized shrimp is super high, thus, we are packed with orders from now on until the end of the year. What we are most concerned about is the ability to increase capacity. Besides, the U.S. also needs that kind of shrimp. We can sign contracts respecting selling hundreds of containers of shrimp (40 shrimps/kg) if the product is well operated.”

In spite of high demand from other big markets, Minh Phú Corp. is only able to sign contracts that sell 50 -70% of the factory capacity. The company hopes to operate at full capacity right after the social-distancing rules are lifted.

Mr. Quang also shared that Minh Phú Corp. had advised farmers to focus on farming large-sized shrimp by reducing the density per meter square to 100 – 120 shrimps and decreasing by 250 shrimps to 350 shrimps per meter square. 

However, the company will have to face competitiveness in the large-sized shrimp market, since other processors in the Mekong Delta are hesitating to buy small shrimps owing to their lack of workforce. 

Mr. Quang said they had received many orders of 10 – 45 shrimps/kg.

Mr. Quang also noted that he had advised farmers to overcome their hesitation and start to breed at that moment, thus, with the aim to harvest in November, domestic factories would have enough time to process and sell shrimp to the U.S. and Europe within this year, ending the holiday.

Speaking of shrimps harvested after November, exporters could sell them to Asian markets, including Japan, Korea, China, Taiwan and HongKong, as claimed by Mr. Quang. 

He shared at a conference on September 17, “We are extremely concerned that in October and November, there would be no ingredient to process and meet the orders for year-end holidays, such as Noel or New Year celebration in the U.S. and Europe. The risk of lacking ingredients is coming that the harvest would not make it happen even when farmers breed in haste in mid-September.”

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