How will shrimp exports be at the end of the year?
In the Mekong Delta, shrimp processing factories are really busy with orders in the run up to the end of the year while other farming areas are harvesting the last crop, resulting in a constantly fierce competition in shrimp material.
The Mekong Delta is harvesting the second crop of the year. Many coastal farmers related to brackish water shrimp culture said that even though they faced difficulties with this crop, diseases were reduced and high productivity was recorded because shrimp were reared in hitech based grow-out ponds with water being well controlled.
The local price of shrimp material is pretty high and supply and demand are steady. However, businesses said that they would not suffer from pressure of orders till the end of the year because consumption would be below expectation due to global inflation.
According to shrimp businesses in the Mekong Delta, shrimp exportation is badly affected by a huge supply from India and Ecuador. Ecuador’s fresh peeled shrimps are penetrating the US market with an advantage of short sea way and low shipping charge, 500-4,000 USD/container. Meanwhile the shipping charge from Asia to the US is three-four times as much as from Ecuador.
It is estimated that the global shrimp output will reach over 5 million tons in 2022 with a growth rate of 5%. China will become the biggest importer of shrimps and a powerhouse in shrimp culture. China buys Vietnamese shrimp from traders and small seafood processing factories, mainly boiled shrimp and black tiger shrimp (boiled shrimp with the red color that makes the food attractive), which are advantages of Bạc Liêu and Cà Mau.
Vietnam’s shrimp sector grows about 8% per year, higher than the average rate of the world. Vietnam continues to promote its strength of highly processed shrimps.
In Lực’s opinion, the Japanese market requires delicate and meticulous techniques in processing shrimp, which can be met by Vietnamese processors. In the face of a short supply of shrimp material due to the end of the crop, Vietnam will take advantage of their strengths in processing shrimps to trail other countries when exporting to Japan and Korea.
The Vietnamese shrimp is ranking in the first position in Japan, Korea, the UK, and Australia, and increasing its market share in the EU. Vietnam is mounting its effort to maintain the market share in China and the US. The market share of Vietnamese shrimp is at about 10%. Vietnam is predicted to achieve USD 4 billion from shrimp exports in 2022.