The price of black tiger shrimp in the first months of the year dropped sharply, causing farmers to suffer heavy losses due to the lack of export orders.

Many seafood enterprises said that there have been no new export orders, so shrimp prices are falling sharply. The price of shrimp has decreased by 30-40% compared to the beginning of the year, with the current price at 85,000-210,000 VND (3.7-9 USD), causing farmers to lose from 50-150 million VND (2,155-6,465 USD) per tonne of shrimp sold.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), last month, shrimp exports only reached 265 million USD, down 33% over the same period last year.

In the first three months of the year, exports reached 600 million USD, down 37%.

Specifically, shrimp exports to the US, EU and China were down more than 40% and to the Republic of Korea and Japan around 20% over the same period last year.

Japan is Vietnam’s largest shrimp export market at 17.6% of total exports. In the first quarter of this year, shrimp exports to this market reached more than 105 million USD, down 29% over the same period a year ago.

In the first quarter of this year, Vietnam’s shrimp exports to the US reached more than 104 million USD, down 46% over the same period a year ago. Record inflation, reduced purchasing power, and high inventories from 2022 are all factors that have reduced demand for shrimp imports into the US.

The situation of US shrimp imports from Vietnam depends a lot on current inventory. If the situation is positive, import demand may recover after the second quarter of this year, according to the VASEP.

Meanwhile, shrimp exports to the EU reached 89 million USD in the first quarter, down 44% over the same period a year ago. Shrimp exports to the EU are not expected to recover in 2023 due to the impact of the Russia-Ukraine conflict.

VASEP said that the reason for the sudden drop in exports was the sharp drop in international market demand. In EU, purchasing power has been affected by the impact of inflation and uncertainties related to the Russia-Ukraine conflict, while the US is in oversupply. According to data from the National Oceanic and Atmospheric Administration (NOAA), US shrimp imports in December 2022 hit a 10-year low.

In addition, Vietnam is facing increasing competition from rival suppliers such as Ecuador and India.

Vietnam’s shrimp sector still faces many difficulties and challenges in both input and output related to shrimplet quality, disease control, the ratio of farming areas and product that sometimes does not meet GAP standards. The production cost of shrimp in Vietnam is still much higher than that of Ecuador and India.

In order to increase competitiveness and increase exports, enterprises need to optimise costs, focus on developing added value, improve product quality, and actively change product structure to meet the needs of each market segment. In addition, businesses also need support from the government in terms of technology transformation and capital.

VNA