Scarce shrimp supply threatens shrimp exports

It’s already the end of June and yet shrimp farmers here have only just started to preparing the lake for their first shrimp batch of the year. In the past, they would have already started their third batch during this time of the year. Disease, heat and pollution have left these lakes abandoned throughout the first half of the year.

"The conditions were so bad that we couldn’t raise any shrimp. We had to find another job or switch to crab farming." - Tran Van Be, Shrimp Farmer, Phu Yen Province

With the scale of over 1000 hectares, the shrimp farming area in Phu Yen Province is the largest of its kind in the South Central region. However, only half of it is being used. Other shrimp farms are experiencing a similar situation. Declined shrimp production in farming areas leads to a lack of raw materials for shrimp processing factories. Meanwhile, domestic enterprises cannot afford raw shrimp input at high prices.

"Shrimp processing enterprises are sensitive to cost. Exports require a large supply of raw material. Secondly, lower productivity also leads to higher shipment expenses." - Do Kim Dong, Head, Agriculture & Rural Development Department, Dong Hoa District, Phu Yen Province.

Meanwhile, many traders from China have recently increased their purchasing of raw shrimp with higher prices than Vietnamese shrimp processing enterprises. Chinese traders usually buy shrimp with lower standards, which causes increased challenges for domestic businesses.

"Chinese shrimp exporters require lower standards so the quality check time is short and they can afford to buy raw shrimp with higher prices." - Do Kim Dong, Head, Agriculture & Rural Development Department, Dong Hoa District, Phu Yen Province.

As for the shrimp farmers, competition in shrimp materials still doesn’t benefit them. The price ranges only from 4 to 5 USD per kg which has further discouraged shrimp farming. Shrimp farms continue to be deserted; output continues to decline. And finally, both shrimp farmers and shrimp processing and export businesses face difficult situations. The situation has posed an urgent need to further promote links between farmers and businesses.