Shrimp exports reach highest value in July

This marks the highest monthly export value since the beginning of the year and the best growth rate for Vietnam’s shrimp exports since February. Cumulatively, shrimp export value for the first seven months of the year surpassed $2 billion, an 8% increase compared to the same period last year.

In July, shrimp exports recorded growth across most major markets, including the U.S., China, and the EU. Markets such as Japan and South Korea, which had previously seen declines or only slight increases, reported double-digit growth in July.

Reduced inventories and the need to restock for year-end holidays drove increased import demand in these markets. Additionally, the rising cost of raw shrimp from major global producers, including Vietnam, positively impacted export prices.

In the U.S. market, Vietnam’s shrimp exports increased by 16% to $89 million in July. Over the first seven months, exports to this market totaled $391 million, a 4% rise compared to the same period last year.

The U.S. inventory levels have decreased, prompting retailers to replenish stocks ahead of the holiday season. Positive economic indicators, such as a slight increase in retail sales in July compared to the previous year, consumer spending, business investment and exports, wage growth, low unemployment, and signs of easing inflation in the U.S., also contributed to this trend. Frozen shrimp remains a top-selling item in U.S. retail.

Shrimp import demand in the U.S. is expected to continue rising in Q3, with prices slightly increasing from July onward.

According to data from the U.S. National Oceanic and Atmospheric Administration (NOAA), in the first six months of 2024, the U.S. imported 351,025 tons of shrimp, valued at $2.7 billion, a 3% decrease in volume and a 6% decrease in value compared to the same period in 2023.

In the China & Hong Kong market, Vietnam’s shrimp exports showed signs of recovery in July with double-digit growth compared to the same period last year. Cumulatively, over the first seven months, shrimp exports to this market reached $399 million, an 18% increase compared to the same period last year.

Vietnam’s shrimp exports to China rebounded due to increased demand from this market. Additionally, Ecuador, a major competitor of Vietnamese shrimp in China, faced stringent inspections from Chinese authorities, leading to some shipments being rejected in June due to excess sodium metabisulfite residues. This impacted Ecuador’s shrimp exports to China.

Export businesses continue to face challenges, including rising sea freight costs and global conflict risks. Shrimp farming activities in August and September will also be affected by heavy rains, potentially leading to a lower supply of commercial shrimp toward the end of the year. Despite these challenges, companies have developed strategies such as signing year-long contracts and increasing raw material reserves. There is hope that in the remaining months of the year, the global economy and major import markets will show positive signs, enabling the shrimp industry to achieve its 2024 targets.

VFM