HCMC – The Vietnam Association of Seafood Exporters and Producers (VASEP) has forecast a 21% year-on-year decline in shrimp exports this year.
This decrease is due primarily to intense price competition in the global shrimp market, resulting in prices plunging.
While November 2023 showed a modest improvement in shrimp exports, with a 3.5% year-on-year increase at US$310 million, the total exports in the year through November had reached US$3.15 billion, down by a significant 22% compared to the same period in 2022.
VASEP projected that the total shrimp shipments for the entire year would hover around US$3.4 billion, indicating the challenges faced by shrimp exporters.
The global oversupply of shrimp continues to weigh on prices, with major markets experiencing lower prices than in the previous year.
Only a few niche markets have reported slight increases, and an improvement in demand is expected in Southeast Asia and the Far East toward the year-end due to festive seasons, potentially leading to higher prices.
Vietnam’s shrimp industry is grappling with challenges as processing companies have reported a sharp fall in daily raw shrimp intake, said Ho Quoc Luc, board chairman at the frozen shrimp manufacturing and exporting firm Sao Ta Foods JSC.
He attributed this decline to weak demand. Currently, processed shrimp sold in the market is only half of the typical volume due to the impact of reduced orders on industry dynamics.
Despite these export challenges, Vietnam’s aquaculture sector is witnessing growth in efficient shrimp farming models. Techniques such as super-intensive farming for whiteleg shrimp, extensive farming for black tiger shrimp, and improved extensive farming practices are gaining traction.
Whiteleg shrimp production increased by 1.5% to 252,600 tons, while black tiger shrimp production rose by 7.3% to 779,700 tons in the January-November period.
