(HQ Online) - Although shrimp exports have shown signs of improvement in the first month of 2024, businesses are facing new challenges and need to be flexible and proactive in responding.
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| Shrimp processing for export at Sao Ta Joint Stock Company |
Flexible response
As of January 15, 2024, Vietnam's shrimp exports to the US reached over $15 million, a 4% increase compared to the same period in 2023. In 2023, shrimp exports to the US reached $682 million, a 15% decrease compared to 2022. After a sharp 47% decline in the first quarter of 2023, shrimp exports to the US narrowed the decline in the second quarter, and recovered in the third and fourth quarters, growing by 15% and 23% respectively.
The American Shrimp Processing Association (ASPA), an organization representing the interests of the U.S. wild-caught and processed shrimp industry, recently filed a petition requesting anti-dumping duties on frozen shrimp imported from Ecuador and Indonesia, and countervailing duties on shrimp imported from Ecuador, India, Indonesia, and Vietnam.
According to businesses, the outcome is still unclear, but Vietnamese shrimp exports to the US will be affected in the first half of 2024. In addition, tensions in the Red Sea at the beginning of 2024, which will increase shipping costs to the US, will also be an obstacle for businesses in 2024.
Regarding this matter, the Vietnam Association of Seafood Processing and Export (VASEP) recently sent a letter to the Prime Minister, the Ministry of Industry and Trade , and the Ministry of Agriculture and Rural Development requesting active support in the US anti-subsidy investigation against the Vietnamese shrimp industry to help it overcome the upcoming investigation stages.
Deputy Prime Minister Le Minh Khai subsequently requested the Ministry of Industry and Trade to coordinate with relevant agencies to consider and decide on the use of legal advisory services to represent and support the Vietnamese Government in the US anti-subsidy investigation into frozen warmwater shrimp.
Prior to the initiation of the US anti-subsidy investigation into Vietnamese shrimp, businesses need to prepare thoroughly and proactively to meet the documentation requirements from the US side. This includes proactively researching and understanding the regulations and procedures of the US anti-subsidy investigation, closely monitoring the developments of the case, and coordinating with the Association and the Trade Remedies Department throughout the process.
Proposals to remove obstacles for businesses
A crucial aspect of farmed shrimp production is the issue of broodstock. To ensure a high-quality supply of raw materials and reduce production costs, VASEP recommends that the Ministry of Agriculture and Rural Development strengthen quality control of farmed shrimp broodstock, ensuring that no substandard or diseased broodstock reaches the market.
Currently, feed costs only account for 30-40% of shrimp farming costs. Due to the high price of shrimp feed, over 30,000 VND/kg, an increase of 3,000-5,000 VND/kg is considered a 10-15% increase. Besides feed costs, electricity costs have also increased significantly (accounting for 10% of shrimp farming costs, especially for high-tech farming). However, current electricity prices for shrimp farming are calculated based on service electricity rates and various price levels, affecting the cost of raw materials. VASEP proposes a single electricity price for shrimp farming facilities.
While seizing opportunities, the shrimp industry also faces numerous challenges, requiring the concerted efforts of the Government, local authorities, and all links in the supply chain. The processing industry must constantly adapt to consumer and market trends to develop new products that meet demand in a timely manner.
The aquaculture industry needs a more fundamental approach, with larger-scale production organization to create a scientific and rational overall planning foundation for farming areas. With strong competition from rival producing countries, the shrimp industry should currently focus more on the farming stage to ensure stable quality and prices, thereby increasing the competitiveness of Vietnamese shrimp.
| According to VASEP, in 2023, exports of fresh and frozen shrimp products to the US showed a slightly lower trend compared to processed shrimp products. Notably, exports of tiger shrimp to the US in 2023 recorded positive growth, mainly due to a 10% increase in fresh and frozen tiger shrimp products, reaching $59 million. |
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