Squid and octopi exports increase, but raw materials lacking

Exporting squid and octopi to many key markets has maintained good growth momentum. However, due to limited supply, businesses are worried about lack of production materials.

South Korea imports a wide range of squid products from Vietnam.

The biggest supply for Korea

According to Kim Thu, an expert of VASEP, Vietnam's squid and octopi exports have been greatly affected by the Covid-19 pandemic. Additionally, export activities have been limited by high sea freight rates. South Korea, Thailand, EU, and the US are still markets with stable demand and exports to China have also increased since August.

The top 10 individual markets importing Vietnamese squid and octopi this year are South Korea, Japan, Thailand, China and Hong Kong, Italy, the US, Malaysia, Taiwan, Australia, and the Netherlands. Accounting for 97% of Vietnam's total export price.

The item that South Korea imports the most is frozen octopi. Vietnam is the South Korea’s largest supplier of frozen octopi, accounting for more than 50% of the market share.

In the frozen octopi segment, frozen processed and frozen cut octopi are the two main Vietnamese products exported to South Korea. The price of frozen processed octopi exported to South Korea ranges from US$13-20/kg, while the export price of frozen cut octopi ranges from US$4.9-9.5/kg. Among the top enterprises exporting to South Korea, Kien Cuong Import-Export Seafood Processing JSC is accounting for the largest proportion, making up about 14% of the market. Following is Hop Tan Seafood Import Export JSC, accounting for about 12%.

In October 2021, exports to South Korea reached US$28.8 million, up 16% over the same period last year. Accumulated in the first 10 months of the year, the export to the South Korean market reached US$194.5 million, up 3% over the same period.

Exports for the whole year will increase by more than 13%

Regarding the structure of export products, the value of exported squid accounted for 51.5%, with octopi accounting for 48.5%. Amid the pandemic, consumption demand is still in favor of products that are reasonably priced, easy to process, have a long shelf life and are suitable for home processing and consumption.

In the first 10 months of 2021, Vietnam's squid exports decreased by 1.4%, while octopi exports increased by 10.7% over the same period last year. The export of dried, salted, live, fresh, and frozen octopi increased by 12.5%. These were also the products that recorded the highest growth in the total number of Vietnam’s exported squid and octopi products.

The EU ranks fourth, accounting for 10.3% of the total export value of Vietnam's squid and octopi. In October 2021, exports to this market reached US$48.9 million, up 27% over the same period last year. Italy, the Netherlands and Spain were the three largest importers. In the first 10 months of this year, exports to Italy and Spain increased by 50% and 25%, respectively.

Besides, the US is right behind South Korea in the ranking of Vietnam’s seafood export markets. The vaccination campaign and economic stimulus package of the US Government are the driving forces for the recovery of seafood consumption demand, not only in the food service, restaurant, and hotel segments, but also in the retail segment.

Thanks to the good growth momentum, Vietnam's exports of squid and octopi in the whole year are expected to reach more than US$590 million, up 13% compared to 2020.