Will Vietnam's shrimp exports be affected by the outbreak of Corona?

The pig reflected that some shrimp exporting enterprises had orders to go to China and the orders to China were temporarily unable to be implemented because the importers announced to delay the delivery time, so the storage costs of enterprises increased. According to a shrimp company, this company has signed orders for exporting more than 600 tons of shrimp to Chinese customers but has only delivered half before Tet. The remainder is currently in stock.

In the world market, the price of shrimp in the coming time will decrease because of the strong increase in supply. Commodities of major shrimp suppliers to China, such as Ecuador, India and Thailand, are also congested at Chinese ports but have not yet been cleared. Many ships are currently unable to dock in China due to slow or inactive cargo handling. These countries are also eager to find alternative markets such as the US and the EU, so this also affects demand for imports from Vietnam.

While the demand for shrimp imports from Korea, the US and the EU has also been negatively impacted due to the fear of disease and disease, it also affects the closing of new contracts of businesses.

However, companies with a small market share in China basically do not suffer from shrimp consumption in the current period. Sao Ta Food Joint Stock Company (FMC) has a market share in China of less than 0.5%. China mainly buys Vietnamese giant tiger shrimp. At this time, the black tiger shrimp is out of season, the output at the end of the season is not enough to pay the contracts of other markets. So basically businesses are not affected by the shrimp consumption in the current period.

Behind the effects of the corona epidemic from China that may affect domestic production and trade with China, Vietnamese shrimp enterprises may also have the opportunity to gain a larger market share in traditional markets of China. Chinese shrimp suppliers such as USA, Japan, EU when many importers are suspending orders from China.

In addition, after this pandemic, Chinese consumers may have to change their perceptions and eating habits, limit eating raw foods and will switch to consuming more deeply processed shrimp products. Ensure food safety for processing and cooking.

Chinese consumers' shrimp demand may be higher to replace other crustacean items such as lobster, fresh items such as chilled salmon. The rate of orders of chilled salmon imported to China is now up to 80-90%. Many flights to China have been canceled and many suppliers of salmon, lobsters in Scotland, Norway or Australia to China are struggling to find alternative markets.

In the context of the current complicated situation of Coronavirus epidemic, besides waiting for the Chinese market to resume operation, enterprises need to seek to expand new markets and develop the domestic market, proactively capture information. news on disease movements to plan production adjustments in a timely manner.