Aquaculture exports on road to recovery

Although aquaculture exports were down 23 per cent year-on-year in September, the figure for the first nine months of 2021 rose 3 per cent to nearly $6.2 billion. Aquaculture businesses, however, still face problems regarding human resources, capital, and rising costs.

According to the Association of Seafood Exporters and Producers (VASEP), the relaxation of the distance from mid-September has helped seafood processing and exporting enterprises to gradually restore production after the epidemic. However, businesses still have to "fear" many worries about labor sources, costs, ensuring epidemic prevention for safe production ...

POSITIVE SIGNALS FROM EXPORT MARKETS

In the seafood industry, there are 3 key product groups that always create the highest export value, including: shrimp, pangasius, and seafood.

By the end of September 2021, the total export value of Vietnamese pangasius reached US$1.07 billion, up 3.2% over the same period last year. The situation of the Covid-19 epidemic in the Mekong Delta in recent months has been very complicated, seriously affecting the farming, production and export activities of pangasius processing enterprises in this area. . 

Shrimp production and export from the second half of September 2021 to now have shown more positive signs, especially in some key shrimp provinces such as Soc Trang, Bac Lieu, and Ca Mau. Thanks to the province's direction to control the disease well, businesses have both made efforts to fight the epidemic while trying to maintain production.

From October 2021, the flow of workers from Ho Chi Minh City and the Southeast provinces spontaneously returned to their hometowns in the Mekong Delta provinces, causing the isolation areas to be overloaded, the number of F0 cases increased. pressure on shrimp processing and export enterprises here.

However, so far, after the efforts of both local authorities and businesses, the Covid-19 epidemic situation in Soc Trang and the western provinces has been somewhat controlled. Faced with this situation, shrimp processing and exporting enterprises need to make great efforts and vigilance to maintain production and meet orders for customers during the year-end holidays.

According to data of Vietnam Customs, in September 2021, Vietnam's shrimp exports decreased by 20%, reaching 308.5 million USD. The rate of decline was lower than in August 2021, shrimp exports to some markets showed signs of slight recovery.

In the structure of Vietnam's exported shrimp products in 9 months, whiteleg shrimp accounted for 77.2%, black tiger shrimp accounted for 15.3%, and marine shrimp accounted for 7.5%.

Accumulated shrimp exports in 9 months reached 2.76 billion USD (up 2.6%), including vannamei shrimp increased 10%, reached 2.14 billion USD; black tiger shrimp decreased by 1.7%, reaching only USD 422 million; the rest are other shrimp products.

Among the exported vannamei and black tiger shrimp products as of September this year, only the export value of live/fresh/frozen vannamei shrimp (HS 03) increased by 20%, the rest of the products decreased. compared with the same period last year. Demand for affordable vannamei shrimp products has increased during the Covid-19 epidemic season.

Regarding the export market, Vietnam's shrimp exports to the US in September 2021 recovered slightly, up 8% to $97.6 million. Accumulated in the first 9 months of the year, shrimp exports to the US reached over 775 million USD, up 22% over the same period last year.

The demand for US shrimp imports is still high, especially when this market is reopening after Covid and the year-end holidays are approaching. According to the National Oceanic and Atmospheric Administration (NOAA), the US shrimp imports continued to increase in September 2021, the 10th consecutive month of increase, with an average monthly import of 89,000 tons of shrimp and the price of worth more than 800 million USD.

US shrimp imports from Ecuador have continuously increased sharply since the beginning of this year. However, according to VASEP, the growth rate of Ecuadorian shrimp exports to the US will be difficult to maintain in the near future due to the lack of raw materials for processing, which has created opportunities for Vietnamese shrimp.

Vietnam's shrimp exports to the EU in September 2021 decreased by 15% compared to the same period last year, reaching only 48.8 million USD. Although still decreasing, the rate of decrease was lower than in August. Accumulated in the first 9 months of this year, shrimp exports to this market reached nearly 408 million USD, up 10% over the same period.

The three main import markets in the bloc are Germany, the Netherlands and Belgium. As of September 2021, exports to Germany and Belgium increased by 22% and 2%, respectively, while the Dutch market decreased by 1%.

“The EU's shrimp stockpiles are at a low level, the import demand of this market is very high from now until November to serve Christmas, along with the Free Trade Agreement with Europe will be an opportunity for producers. Vietnamese shrimp exports to this market", VASEP said.

THE ENTERPRISE IS STILL NOT END OF DIFFICULTY

Citing data from the General Department of Customs, VASEP said that in September 2021, Vietnam's seafood exports reached $233.5 million, up 3.9% compared to August 2021 and down 24% compared to September. 2020.

The reason for the decrease in seafood exports in August and September was due to the production activity being delayed due to social distancing to prevent the Covid epidemic from mid-July this year, the processing factory reduced capacity, lack of raw materials. production data, supply chain disruption, transportation not smooth.

In the first 9 months of the year, seafood exports reached 2.4 billion USD, accounting for 38% of the total seafood export value of the country and increasing by 2.8% over the same period in 2020.

Vietnam's seafood exports include the following product groups: fish of other types (except tuna and pangasius, accounting for 51.1% of total seafood export value); tuna (accounting for 22.1%); squid, octopus (17.3%); crabs, crabs and other crustaceans (5.1%); bivalve molluscs (4.2%) and other molluscs (except squid, octopus and bivalve molluscs account for 0.2%).

In September 2021, the export value of all seafood products (except bivalve molluscs) decreased by 8%-37% compared to September 2020. Exports of other fishes fell the most by 37%. Tuna and crab exports decreased by 15% and 18%, respectively. Only exports of bivalve molluscs increased by 37%.

However, thanks to the positive growth in the previous months, accumulated in the first 9 months of this year, the total value of seafood exports still increased slightly compared to the same period in 2020.

In the 3 quarters of 2021, the export of bivalve molluscs increased the most by 39% to 99.6 million USD; while tuna and squid and octopus exports increased by 9% and 3% respectively over the same period last year. Exports of other types of molluscs fell the most by 36%, but this product only accounted for a small proportion. Exports of other fish and crabs decreased by 0.6% and 6% respectively.

In the first nine months of 2021, the top five largest import markets of Vietnam's squid and octopus include South Korea (accounting for 41%), CPTPP (accounting for 24%), Thailand (accounting for 11%), EU (accounting for 10%). ), and China (accounting for 7%).

Compared to the same period last year, the export value of squid and octopus products to the CPTPP and China markets both decreased by 6%; exports to the EU increased the most by 30%, exports to Korea and Thailand increased by 1.2% and 5% respectively.

VASEP commented that with the Covid epidemic situation that has not been completely controlled, businesses have gradually recovered production after the gap from mid-September but still faced many difficulties in terms of labor, capital, and increased costs. , plus the cost of epidemic prevention for safe production. Therefore, Vietnam's seafood production and export will continue to decrease in October 2021.