Enterprises have signed many contracts hence the shrimp prices are rising

Enterprises processing export seafood enterprises have signed lots of export contracts, so it leads to increasing demand for using material for processing after several months of sharp price decreases.

Processing shrimp for export at Ca Mau Seafood Company. Photo: N.H

According to the Vietnam Association of Seafood Exporters and Producers, from April to mid-June, the price of white leg shrimp decreased sharply from 20-30%, depending on the size of shrimp. However, since mid-June, price of white leg shrimp have shown slight improvement.

Along with the increased demand from import markets, shrimp prices are expected to increase significantly around August this year. According to some shrimp enterprises, the price of white leg shrimp in some Mekong Delta provinces has increased by 2,000 VND / kg over the previous month.

It is forecasted that the price of shrimp material will be improved in the future. In India, Bangladesh, Thailand and some other countries, have gone past their harvest times or suffered losses, so they are restraining on feeding their shrimp stocks. Thus, this leads to a decrease in world supply during the third and fourth quarters of 2018.

Many export processing enterprises in Vietnam have started signing large orders for important holidays for the end of 2018. Therefore, shrimp price is forecasted to increase again in the near future, especially in August and September 2018.

In the context of current shrimp price, farmers are advised to maintain feeding shrimp (white leg shrimp and black tiger shrimp) from the end of June. However they should stock with low density to minimize risks, prolong the harvest time, and wait for the time when the shrimp sale prices are better. In addition, farmers should apply new technology for breeding in accordance with international standards, focus on production and cooperate in the value chain (from input materials to product consumption) to improve product quality and reduce production costs.

Enterprises processing shrimp exports are also recommended to focus on developing value added products and high quality products for sale in the high-end market segment, because these products are sold at higher prices and have a stable consumption market.