Golden opportunity to boost shrimp industry growth

Right from the early days of 2021, Vietnam’s shrimp export has experienced quite active performance as import demand of the world market is still rather stable.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), shrimp demand in the US retail segment currently is still high and new orders are continually under process. This trend is expected to continue in the first half of 2021.

As the world market remains favourable, Mr. Jim Gulkin, COE of Siam Canadian Foods Co., Ltd. predicts that shrimp price in the world market will further increase in the first half of 2021.         

Meanwhile, many shrimp producers and exporters haven’t yet recovered due to negative impacts of Covid – 19. Shrimp industry in some countries even continue to encounter difficulties due to Covid – 19 resurgence.

Right near Vietnam, Thailand’s shrimp industry has been afflicted when Samut Sakhon province, which holds about 30% of Thailand’s shrimp export, was imposed urgent lockdown due to Covid – 19 outbreak at a seafood market in this province.

Given such circumstances, this is a good opportunity for Vietnam’s shrimp industry to boost export right in the first days of the year, especially export to the US. VASEP forecasts that shrimp exports to the US in the coming time will continue to growth well due to the continued increase of the US’s import and consumption demand. Along with pangasius, Vietnamese shrimp has the advantage of suitable price for most American consumers.

The US is still the largest export market of Vietnamese shrimp. In the first 11 months of 2020, shrimp export to the US gained US$ 806.6 million, an increase of 34% against the same period of 2019. It must be noted that although the US is at the heart of Covid-19, in the first 11 months of 2020, Vietnam’s shrimp export to the US achieved positive growth in all months.

At EU market, Vietnamese shrimp currently have opportunities to increase market share thanks to the EVFTA. The Chinese market is estimated to grow slightly. Many other important markets such as UK, Australia, Canada, Russian, Switzerland and Hong Kong…tend to have a positive growth this year.

However, according to Dr. Ho Quoc Luc, Chairman of Board of Directors of Sao Ta Foods Joint Stock Company, at present, all consumption markets already require product traceability. Shrimp is a high - quality, delicious and nutritious food, so it is much interested by consumers and required strict traceability.

As from 2019, Vietnamese shrimp exporting to the US must declare the origin of each shipment under the US Seafood Import Monitoring Program (SIMP). Farming zone and pond code must be provided in advance and origin of the shipment must be informed prior to port departure.

Same requirement is imposed by other major EU markets and recently Chinese market. This is a legitimate requirement and is not considered as protective barriers and must be abided by suppliers to ensure their smooth business activities.

Therefore, although the shrimp industry is enjoying opportunities to boost growth, in order to ensure sustainable development, Dr. Ho Quoc Luc said that it is necessary to have comprehensive preparation.  In which, traceability plays an extremely important factor. This factor is associated with the issuance of farming codes. Currently, businesses of shrimp industry are expecting that local authorities will push up the issuance of farm codes to facilitate shrimp export.

“Shrimp industry is facing golden opportunities for growth when shrimp production of other major exporters has dropped down due to the impacts of Covid – 19, while links in the value chain of Vietnamese shrimp are flexible in cooperation forms, hence creating great encouragement for farmers to continue their farming, even develop their faming ponds.”, said Dr. Ho Quoc Luc.