The Vietnam Association for Seafood Exporters and Producers (VASEP) have advised farmers to reduce their outputs to counter falling prices.  

The prices for a kilo of white shrimp in the first quarter dropped by 10%

The prices for a kilo of white shrimp in the first quarter dropped by 10% compared to the same period last year. In April, the prices of shrimp dropped by VND20,000 (88 US cents) per 70-unit kilo to VND110,000 to VND120,000. The prices of a 100-unit kilo dropped by VND15,000-VND20,000 to VND85,000-VND90,000.

Both the prices of black tiger shrimp and white shrimp in the Mekong Delta has sharply dropped this month.

It is said that the prices dropped because of high supply. In the first quarter, Vietnamese farmers harvested 119,800 tonnes of shrimps, an increase by 11% on last year. The Mekong Delta alone harvested 46,700 tonnes of black tiger shrimps, an increase by 1%, and 51,500 tonnes of white shrimps, an increase by 28% on last year.

A report at the Global Seafood Market Conference shows that top shrimp producers also will also have a bountiful crop this year and the overall output this year may surpass 3.5 million tonnes, making it the highest output since 2008.

As importers in other countries stopped buying shrimp in large volumes, local processing companies also reduced purchases from farmers. Shrimp export prices dropped by 20% compared to late 2017 and are forecasted to continue falling. However, it will still be hard to access the US as firms will have to compete with discounted shrimp from India which are being sold at USD9.90 per kilo. A kilo of Vietnamese shrimp is sold at USD11.40.

"World shrimp prices are falling. The farmers should be calm and follow directives from the authorities," said the VASEP representative.

Farmers are advised to reduce the volume of shrimp and focus on large shrimps to avoid risks. Farmers in Thailand and India reduced production when world prices drop. The shrimp supply then will drop in the third quarter while the prices will increase and local processors will increase the purchase of shrimp.

Shrimp imports by major markets are expected to increase from the end of the second quarter or early of the third quarter. Demand for shrimp in the US is expected to remain good with high consumer confidence and positive economic outlook.

Vietnam needs to build a cohesive system that will reduce shrimp prices and solutions to build a brand for Vietnamese shrimp.

Lao Dong/Dtinews