First, let's talk about shrimp farming. Currently, shrimp farmers are struggling due to severe shrimp diseases, mainly caused by widespread bacterial infections. Shrimp stocked in farms suffer losses within a month, or at most a month and a half, yielding only about 200 shrimp per kilogram – resulting in endless losses.
Processing businesses are struggling due to a lack of orders. Moreover, while the price of commercial shrimp isn't extremely high right now, it's still high compared to the selling price, because world shrimp prices are too low – more than $1/kg cheaper than domestic prices. This results in a price difference of over $1.50 for finished shrimp products – making it very difficult to secure orders.
How big is the market? The Japanese yen has depreciated to a record low of 150 yen per USD, hindering strong purchasing power. The advantage lies in the diligence and hard work of our workers, who have supplied this market with traditional Japanese products of high quality and attractive designs—a level of quality unmatched by any other shrimp industry. This strength is being eyed by the Indonesian shrimp industry, but we are confident in maintaining our leading market share there. The remaining issue is pricing.
Consumer trends in the EU are ahead of other markets. They demand farmed shrimp that meets safety standards (ASC), require suppliers to implement emission reduction solutions (farming, processing), demand traceability (shrimp feed ingredients, broodstock, etc.), and demand animal welfare (broodstock not having their eyes removed during artificial breeding, farming at moderate densities, etc.). These stringent requirements are one reason why, although the "Vietnam-EU highway" exists, our "vehicles"—the processing businesses—have not been able to accelerate! Certainly, this situation will further compel Vietnamese shrimp and fish entrepreneurs to approach this market more thoroughly.
Last year, China imported one million tons of shrimp, highlighting the enormous size of this nearby market. In fact, China has thousands of large shrimp processing enterprises supplying both domestic and export markets. China primarily imports raw shrimp for processing and distribution. The vast majority of our shrimp is processed – quite advanced and complex – so we understand our strengths and weaknesses, focusing on selling products to China that other shrimp-supplying countries cannot provide. Over the past decade, Vietnamese shrimp businesses have gained considerable experience in this area. As a result, China has become a large and promising market for Vietnamese shrimp, and in the long term, China will likely gain a larger share of the Vietnamese shrimp market.
Overall, the shrimp industry is currently facing immense difficulties. These difficulties range from farming and processing to market consumption. Naturally, those involved must take the initiative to shoulder the burden! Among them, shrimp farmers are the hardest hit, facing both a lack of capital and an abundance of uncertainties. They can only hope for better disease control from suppliers, more favorable weather conditions, and the involvement of investors to support them.
Shrimp entrepreneurs have to struggle. Now, sustainable business practices are needed, with a greater focus on risks, and no more opportunistic "quick profit" ideas. Output determines input; the role of shrimp entrepreneurs is enormous and decisive. Hundreds of thousands of shrimp farming households and tens of thousands of processing workers depend on the results of overseas ventures undertaken by shrimp industry entrepreneurs seeking a way out of crisis. Everything is still ahead, and while we have faith in the capabilities of the shrimp industry entrepreneurs, the greater concern is that the future of shrimp farming remains uncertain, even as the shrimp season approaches.
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