01/07/2024
According to recorded shrimp prices on June 12 in Kien Giang province, black tiger shrimp decreased from 30,000 - 40,000 VND/kg depending on size compared to 1 month ago. Specifically, black tiger shrimp of 20 - 30 shrimp/kg are purchased by traders at a price of 250,000 VND/kg, a decrease of about 40,000 VND/kg. Black tiger shrimp 50 pieces/kg 1 month ago was priced at about 130,000 - 135,000 VND/kg, now reduced to 95,000 VND/kg.
For 100 white shrimp/kg, traders buy it at a price of 66,000 - 70,000 VND/kg, down about 20,000 VND/kg. White shrimp 50 - 60 shrimp/kg price is 73,000 VND, down 30,000 VND/kg. Vannamei shrimp 70 - 80 shrimp/kg is priced at 70,000 VND/kg, down 25,000 VND/kg.
Similarly, the price of white leg shrimp in the provinces of Ca Mau, Bac Lieu, Soc Trang, Ben Tre... is also at a low level, dropping sharply compared to the beginning of the year.
According to some businesses and traders, the reason for the sharp drop in shrimp prices is that supply exceeds demand. In addition, shrimp is in season, the weather is favorable, so the harvest is large; at the same time, shrimp purchasing companies for export have reduced output. Shrimp export activities of businesses also face many difficulties due to slow market demand, supply chain congestion due to increased freight rates and lack of containers, and tension in the Red Sea.
Meanwhile, shrimp prices from India, Indonesia, and Ecuador are offering low prices. Consumption prices on the world market remain low and Ecuadorian shrimp continues to be sold at increasingly cheap prices.
Raw shrimp prices from world sources have all decreased.
Prices of raw shrimp from major suppliers in the world have decreased. Raw shrimp prices in China in week 25 (June 17-23, 2024) fell to nearly the lowest level in a decade as production reached a seasonal peak. Shrimp size 60/kg decreased by 22% and shrimp size 80 decreased 25% compared to the previous week. Prices are currently near decade lows last recorded in the summer of 2020 during the COVID-19 pandemic. China's shrimp production is expected to remain high in June and July.
Ecuadorian shrimp prices in week 24 (June 10-16, 2024) were around $3.90/kg for 20/30 and $3.50/kg for 30/40. Prices for 40/50, 50/60, 60/70, 70/80 and 80/100 shrimp remained unchanged at $3.30/kg, $3.15/kg, $2.80/kg, $2.30/kg and $1.90/kg.
Excess supply causes prices to drop sharply, which also affects farmers' profits and ability to maintain sustainable operations.
In week 25, in the main shrimp farming state of Andhra Pradesh, the price of 60-sized HOSO shrimp was 260 INR (3.12 USD)/kg; 280 INR/kg for 50 animals; and INR 320/kg for 40 animals.
Prices for the smallest shrimp -- 100 count/kg -- remain significantly lower than year-ago levels, down 17% from the same week in 2023. The situation is similar for the 60 count -- prices are down 10% from the same week last year.
The reason for the decrease in Indian shrimp prices is due to increased shrimp supply, processors are not paying higher prices because of the gloomy export market.
In Indonesia, raw shrimp prices continued to decline across all sizes in week 25. Prices have now decreased by 10% for size 30 shrimp and 8% for size 60 shrimp over 5 weeks.
Raw shrimp prices in Indonesia have fallen as processors try to push prices down after the US imposed new anti-dumping duties.
Shrimp prices in the coming time are unclear, because besides the market demand factor, it also depends on the main crop of shrimp powerhouses such as Ecuador, India, and Vietnam. Ecuador is even more difficult to predict because they can raise shrimp all year round.
According to some businesses, it is still impossible to say whether shrimp prices will increase again or not, but the possibility of shrimp prices decreasing further will be very unlikely, because recently a few businesses have raised their purchasing prices, although not by much. shows that businesses still have a need to purchase raw shrimp. Raw shrimp prices are likely to increase again at the latest in August when the main harvest in world supplies is over and demand from markets is more positive in preparation for the end of the year.
Authorities have advised farmers to stabilize their mentality, avoid mass harvesting of farmed shrimp, maintain stable stocking with lower densities, and extend farming time to increase the size of large-sized harvested shrimp. Ensuring quality and food safety, increasing selling prices, thereby increasing investment efficiency. Or you can increase farming density to increase harvest output, gradually prune, and the remaining quantity in the pond will have a favorable environment for faster growth. Proactively coordinate with relevant agencies and units to grasp the price developments of raw shrimp, analyze production efficiency of each size of harvested shrimp, and forecast demand developments in the consumer market.
In the long term, to reduce production costs and create new momentum for shrimp, helping shrimp farmers ensure profitable production, promoting production linkage models according to the value chain must be paid more attention. Along with that, there must be a strategy in developing the feed processing industry, materials for shrimp farming, aiming for self-sufficiency. At the same time, constantly improve the farming process, strictly control the quality of seeds, materials and especially manage the environment well to aim at forming and building modern, sustainable shrimp farming models, low production costs and bringing high profits to shrimp farmers.
In the first 5 months of this year, Vietnamese enterprises exported shrimp to 103 markets, bringing in 1.3 billion USD, up 7% over the same period last year. Although the shrimp industry continues to face many challenges as the world economy has not shown signs of recovery and inflation remains high, the shrimp export turnover in the first 5 months of the year recorded a slight increase compared to the same period, which is a positive signal, especially as demand from the EU, Japan, and South Korea markets has shown signs of increasing again.
Source: Kim Thu (vasep)