The export price of shrimp is rising, while domestic prices are abnormal

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), since February, the export price of white leg shrimp to the US has continuously increased, rising from 9.6 USD/kg to 10.2 USD/kg.

In the US market, Vietnamese white leg shrimp is seizing opportunities as the shrimp industries of Ecuador and India face warnings regarding labor and food safety issues. In total, during the first seven months of the year, Vietnam's shrimp exports to the US reached 391 million USD, up 4% compared to the same period last year.

US shrimp demand is expected to increase slightly in the third quarter, with prices projected to rise from July onwards due to higher purchasing power from importers ahead of the end-of-year holiday season. This presents an opportunity for Vietnamese shrimp companies to continue boosting their exports to the US.

In addition to the US market, the export price of white leg shrimp to the EU has also risen recently, increasing by 1.4% to 7.1 USD/kg. In July, the EU imported 4.417 tons of Vietnamese white leg shrimp. This marks the third consecutive month that Vietnamese shrimp imports into the EU have reached high levels compared to the latter part of 2023 and the beginning of 2024.

In the first seven months of the year, the EU has become the fourth largest market for Vietnamese shrimp, with export revenue amounting to 265 million USD. The shrimp market in the EU is showing signs of improvement. Mr. Do Ngoc Tai, Chairman of the VASEP Shrimp Committee, noted that demand for shrimp in the EU is expected to see a slight increase through the end of the year.

Due to the increase in export shrimp prices in several major markets, the demand for raw shrimp for processing and export is recovering and the prices of some types of shrimp in the domestic market are also improving. However, domestic shrimp prices still exhibit some irregularities.

Mr. Nguyen Kim Chuyen, Director of Quyet Thang Agricultural Cooperative (Ba Ria City, Ba Ria - Vung Tau Province), noted that the price trends for shrimp this year are different from previous years.

In the past, larger-sized shrimp commanded higher prices. For example, if shrimp with a size of 50 pieces/kg were priced at 4 USD/kg per, shrimp sized at 60 pieces/kg would be priced around 3.6 USD/kg and shrimp sized at 70 pieces/kg would be priced even lower, typically with a 0.4 USD/kg difference between adjacent sizes.

However, this year, the prices of shrimp of various sizes no longer follow this pattern. Recently, shrimp sized at 80 pieces/kg were priced over 3.2 USD/kg, while shrimp sized at 50 pieces/kg were priced at only 3.6 USD/kg.

Shrimp sized at 80 pieces/kg and shrimp sized at 50 pieces/kg have a significant size difference but the price difference is not substantial. As a result, farmers selling shrimp sized at 80 pieces/kg benefit much more compared to those with shrimp sized at 50 pieces/kg. This is because raising shrimp to a size of 80 pieces/kg involves a shorter cultivation period and lower costs. On the contrary, increasing shrimp size from 80 pieces/kg to 70, 60 and then 50 pieces/kg extends the growth period, as larger shrimp grow more slowly. Consequently, the costs of raising them also increase.

The reason the price difference between shrimp sized at 80 pieces/kg and shrimp sized at 50 pieces/kg is not significant is due to the high demand for 80-piece-per-kilogram shrimp both domestically and for export. Many shrimp processing factories are intensifying their purchases of 80-piece-per-kilogram shrimp, leading to an increase in the price for this size. In contrast, shrimp sized at 50 pieces per kilogram are experiencing difficulties in consumption.

Due to the high demand for 80-piece-per-kilogram shrimp, many farms are now adopting a policy of harvesting and selling shrimp at this size rather than growing them to larger sizes. This practice could lead to a shortage of larger-sized shrimp for raw material.

Mr. Chuyen explained that, since the shrimp market has changed, he must closely monitor the market to make timely adjustments regarding the timing and size of shrimp harvests. This is essential to ensure optimal consumption and profitability.

According to VASEP, in July, Vietnamese shrimp exports reached their highest level of the year, totaling 375 million USD, a 17% increase compared to July 2023. For the first seven months of this year, the cumulative shrimp export value has exceeded 2 billion USD, marking an 8% increase compared to the same period last year.