The supply of Vietnamese shrimp may be in short supply due to farmers' hesitation in stocking

When the COVID-19 pandemic began spreading to countries around the world, Vietnam's shrimp trading partners significantly reduced their imports.

Starting at the end of February and early March, many European importers stopped accepting goods and by mid-March, customers in North America, Asia, the Middle East and South America also decided to cancel or postpone orders. line.

Stock inventories soared because companies were unable to export as planned, according to a survey SeafoodSource. As a result, Vietnam's shrimp export value in March decreased by nearly 15% over the same period to US $ 207.7 million, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

The decline in exports has led to a sharp drop in shrimp prices. Currently, prices have started to improve from the lows in late March with the price increasing depending on different sized shrimp.

Faced with unprecedented uncertainty in the market, many farmers have chosen not to continue stocking in the current crop. In Soc Trang, the province with the highest shrimp production in Vietnam, up to now, it has been able to stock 6,000 hectares, only 24% of the total area of ​​25,000 ha.

Chairman of the shrimp company based in Soc Trang, Mr. Ho Quoc Luc said unfounded rumors have made people fear, which could lead to material shortages and long-term impact on the shrimp industry. even when the market is back to normal.

Mr. Luc hopes farmers will start stocking in May when weather conditions are favorable and the risk of disease is lower.

While the corona virus pushed the global seafood industry into a crisis, the incidence of white spot disease in the Mekong Delta has also increased over the past few months. This disease, which often appears in cool weather conditions, may be related to environmental changes due to constant saline intrusion in the area.

The disease is affecting production in the Mekong Delta, with some farmers rushing to harvest shrimp in March, after just one and a half months of farming to reduce losses. Therefore, most harvested shrimp are of small size from 100 to 250 shrimp / kg, mainly for processing and exporting to China.

Mr. Le Van Quang, Chairman and CEO of Minh Phu, the largest shrimp company in Vietnam, also expressed concern about the shortage of shrimp materials may occur this year and in fact this situation. have started to show signs.

In the interview with SeafoodSource, he pointed to the increase in online retail and shopping demand from Minh Phu's customers in China, China, Hong Kong, Taiwan and elsewhere but the company's processing plants only operates at 70% capacity.

“Shrimp production in Vietnam is expected to decrease by 30-50% this year due to price fluctuations that prevent farmers from stocking and local authorities' measures to prevent pandemics are also affecting. to farming “.

Truong Huu Thong, President and CEO of Thong Thuan, a shrimp company based in the Central region, is also worried about the shortage of shrimp resources.

Mr. Thong said farmers are hesitant to stock because of uncertain market conditions and rumors like importers have stopped buying entirely because major markets have been closed while banks turned away. with farmers.

The problem of shortage of shrimp supply may be more serious with blockade in many countries (including India, the world's leading shrimp producer, recently extended isolation until May 3). Global shrimp production is likely to decline sharply. In Ecuador, the corona virus outbreak impedes production even more than other countries.

In an effort to address the expected shortage, the Directorate of Fisheries of Vietnam has asked the governments of coastal provinces to stabilize production and in every way possible to ensure adequate supply of shrimp to processors. when the pandemic was under control.

VASEP has directly asked people to release as usual and predicted global demand is likely to return within the next 3-9 months.

In addition, some companies have started offering sales programs to encourage farmers to stock. And Vietnam Australia, the leading shrimp supplier in Vietnam, has provided support packages to local farmers including a 50% discount on baby shrimp.

According to Economy & Consumer