The door for shrimp export is still bright amidst difficulties

Shrimp exports in the last months of 2021 are expected to have good growth. The fisheries industry has set the shrimp export target for the whole of 2021 to reach USD 3.8-4 billion.

Brackish water shrimp farming activities maintained a steady increase in the first 6 months of 2021, creating favorable conditions for processing and exportation. Photo: LHV.

Overcome obstacles in the first 6 months of the year

According to the Directorate of Fisheries, in 2021, Vietnam's shrimp industry will continue to face many difficulties, challenges and potential risks when the shrimp industry is developing sharply, which may lead to abuse in the use of the seed, feed food, environmental treatment products in aquaculture, the evolution of the Covid-19 epidemic and unpredictable international trade competition…

Export activities face a number of new challenges, especially changes in quarantine regulations for imported products in many countries, warnings about food safety. Some of Vietnam's main seafood import markets have had changes in food safety certification.

 

In regard to domestic production, the source of broodstock is still dependent on imports and exploitation from nature, only a part of domestic supply is available, causing inactiveness in production. In the peak stocking season, the key farming areas in the Cuu Long Delta still have a large number of shrimp seeds imported from the South Central provinces without origin and have not been quarantined.

In addition, Vietnam’s shrimp production cost is still higher than other countries in the region. The reason is that shrimp feed still accounts for a high percentage of production costs (about 65% of the industrial shrimp farming cost); The seed cost is high due to the import of broodstock.

Many farming areas lacking electricity have to use generators for water pumps, air fans and electricity generators (the cost is twice as high as using electricity); the transportation cost of materials and raw materials is also high.

The technology for extensive shrimp farming is not suitable, low in productivity and production efficiency. Although the area is large, the output and value are low. The extensive shrimp farming area therefore needs breakthroughs in terms of technical, scientific and technological solutions, in terms of seed (needs seeds with disease resistance and rapid growth).

Optimism in the remaining 6 months of the year

Regarding shrimp exports, it is estimated that shrimp export turnover in the first 6 months of 2021 will reach USD 1.5 billion (black tiger shrimp will reach USD 200 million, and whiteleg shrimp will reach USD 1.3 billion). During the first months of 2021, production activities continued to be maintained stability, and raw material shrimp prices increased, lasting from the end of 2020, which has stimulated businesses and farmers to invest in production.

According to the Directorate of Fisheries, in the last months of 2021, the world's shrimp import demand will increase again, especially in major markets such as Europe, the United States, Japan, China and South Korea. Meanwhile, shrimp supply from some countries such as India and other suppliers will decrease due to the negative impact of the Covid-19 pandemic.

At the same time, Indian shrimp is currently subject to high anti-dumping tax by the US, while Vietnam's shrimp industry continues to have many opportunities due to preferential tariffs of the new-generation FTAs, especially the CPTTP and EVFTA...

It is forecasted that Vietnam's shrimp exports in the last months of 2021 will continue to grow well, ensuring stability in commercial shrimp farming and product processing when the Covid-19 epidemic is well controlled.

Stricter quality control of shrimp seeds

In the first 6 months of 2021, the Directorate of Fisheries, in close coordination with the Department of Agriculture, Forestry and Fisheries Economic Security (A04) and the Inspectorate of the MARD, has conducted an unscheduled inspection of aquatic seed production and rearing establishments showing signs of violations; actively coordinate with the inter-sectoral mission of key shrimp seed consuming provinces in the Cuu Long Delta such as Bac Lieu, Ca Mau, Soc Trang, etc. to inspect the means of transporting aquatic seed through the provinces.

Thereby, 11 facilities with administrative violations have been handled with errors of not having been issued with certificates of eligibility for production and rearing of aquatic breeds; using unclear sources of broodstock. The administrative fine amount is VND 805 million.