Shrimp exports reached USD 457 million in May 2022, up 31% from May 2021, leaving the accumulated value of shrimp exports of USD 1.9 billion in the first five months of the year, up 41% from the same period last year. The growth rate of sales of Vietnamese shrimp to the US slowed down in May 2022 while sales to China increased.
The growth rate of sales of Vietnamese shrimp to the US market slowed down in May 2022, just up 2.8% from the same period last year, reaching USD 99 million. Poor sales were recorded after a 52% increase in April. In the first four months of 2022, shrimp exports to this market increased by 25%-61% as compared to the same period last year.
The accumulated value of the first five months reached USD 390 million, up 21% from the same period last year.
The US imported a great amount of shrimp from countries such as Vietnam, Indonesia, India, and Ecuador in the last few months, leading to such a high stockpile. This can reduce the purchases of importing companies. Shrimp imports into the US decreased in April as compared to previous months.
Besides, the inflation has reached a record high in the US, a new blockade act has been issued by China to prevent the COVID-19 pandemic outbreak, the military situation is overwhelming in Ukraine, and the US has been struggling with the inadequate employment and difficulties in the supply chain. All these matters can affect the sales and domestic consumption of shrimps in the US.
It is forecasted that sales of Vietnamese shrimp to the US will not increase as sharply as it did earlier this year and demand for shrimp in this country will recover in September in the run up to the ThanksGiving and Festivals at the end of the year.
A triple-digit increase in sales of Vietnamese shrimp has been recorded since March in China as compared to the first two months of the year. Vietnam’s shrimp exports to this market increased by 126%-140% from March to May. Vietnam achieved USD 88 million worth from exporting shrimp to China in May 2022, up 126% from May 2021, leaving the accumulated value in the first five months of USD 275 million, up 101% from the same period last year.
The strict policy against the Covid-19 pandemic starts to be loosened in China, triggering a sharp increase in sales of shrimps in this country. In the first four months of the year, China’s shrimp imports rose by 26% in quantity and 51% in value up to 224,000 tons and USD 1.45 billion worth as compared to the same period last year.
The biggest shrimp providers to China, Ecuador and India, had their cargoes returned by China in April when they were detected with Sar-CoV-2 virus on packages. Thus, shrimp sales from Ecuador and India to China reduced by 28% and 30% respectively. China may increase their purchases of shrimps from other countries, Vietnam included.
The Government of the People’s Republic of China is discussing how to develop favorable business policies and stimulus so as to encourage domestic consumption. This is expected to boost the consumption of shrimp in the Chinese market. Sales of Vietnamese shrimp to China are forecasted to grow sharply in the next few months.
It is predicted that shrimp exports to main markets will not change much as compared to May and depend on shrimp supply sources.
Shrimp culture has faced negative weather changes since earlier May, such as premature rain season, affecting the output; thus shrimp supply will not be as abundant as it was in the first four months. Short supply may be possible in the next few months. Shrimp exports are forecasted to grow slowly in quarter II as compared to quarter I.