Tightening supplies and high prices for raw shrimp
Since mid-August, raw shrimp prices in the Mekong Delta have soared, driven by shrinked farming areas and improved control of shrimp diseases. Shrimp prices surge in early Q4, expected to climb furthe
Shrimp farming output has dropped due to harsh weather and rising input costs. Meanwhile, production challenges in major shrimp-producing countries have tightened global supply, driving up demand for Vietnamese shrimp.
Raw shrimp prices spiked sharply in October and continued rising into November. This year, a shorter harvest season and shrinked supply have further tightened the market.
Processing plants face dwindling inventories due to strong export demand and limited raw materials. To sustain operations and meet export orders, major processors have been compelled to raise purchase prices.
The price of 50-count shrimp per kilogram at farms saw the most significant increase in October, rising by 6%, as processing plants and traders shifted focus to smaller-sized shrimp due to shortages and the high prices of larger-sized shrimp.
By mid-November, the price of 50-count shrimp had surged by approximately 30% since week 35, reaching 155,000 VND (6.10 USD) per kilogram. This marked the first time since late 2021 that the price exceeded 6 USD per kilogram.
Meanwhile, the farm-gate price of 100-count shrimp in Dong Thap province ranged from 85,000 to 90,000 VND per kilogram during the week ending November 14, remaining relatively stable compared to the 85,000–88,000 VND per kilogram observed in early October.
Black tiger shrimp prices rise slightly across most sizes since October
Black tiger shrimp prices have risen slightly across most sizes since early October. Larger sizes have seen notable increases, reaching levels comparable to early 2024, while smaller sizes (40, 50, and 60 counts) remain elevated, consistent with early 2023 prices.
Shrimp purchases by processing plants fell sharply in October due to limited supply. The availability of large-sized shrimp, particularly 20-30 counts, declined, driving up prices and reducing trading activity. Traders focused on smaller sizes, especially 40-50 counts. As a result, farm-gate prices for 40 – count shrimp rose the most (4%), followed by 50-count shrimp (2%) and 80-100-count shrimp (1%). In contrast, prices for 20-30-count shrimp remained stable at the ponds.
White leg shrimp exports surged 30% in October
In October, white leg shrimp exports rebounded to 35,350 tons, a 47% increase compared to September and a 30% rise compared to October 2023. Exports to all major markets saw significant growth, including the United States (51%), Japan (74%), China and Hong Kong (33%), the European Union (52%), South Korea (85%), and the United Kingdom (4%).
The United States is the top market for white-leg shrimp, making up 21% of Vietnam’s total exports. The average export price of all white-leg shrimp products has continued its upward trend, increasing by 1% from September to 8.32 USD/kg.
White-leg shrimp exports rose by 4% in October
October also saw a recovery in Vietnam’s vannamei shrimp exports, rising 19% compared to September and 4% compared to the same period last year, reaching 3,591 tons. This marked a 19% increase compared to September and a 4% rise from the same period last year.
The growth was mainly driven by strong demand from Japan (up 48%), South Korea (up 59%), and the UK (up 39%). In contrast, exports to China and Hong Kong, and the EU saw only modest increases of 1%, while the United States experienced a 4% decline in imports.
In Asian countries, particularly India, many shrimp farmers are considering switching to black tiger shrimp farming due to the persistently low prices of white leg shrimp over the past two years. This shift, especially in India, is expected to intensify competition for Vietnamese exporters in the global market. The average export price of black tiger shrimp has increased by 3% since September, reaching USD 11.64 per kg.
The supply shortage is expected to last until the end of Q1 next year. During this time, processing companies will face a major challenge: purchasing raw shrimp at high prices while competing with cheaper imports, resulting in a decline in business performance.
VFM
