Shrimp prices expected to recover in Q3
Updated : Thursday, July 12, 2018 9:42 AM (GMT+0700)

Theprice of material shrimps is forecast to recover in August and September aftersuffering drops over the past months, especially in the second quarter of 2018,according to the Vietnam Association of Seafood Exporters and Producers(VASEP).

 
Illustrative image - Source: VNA

The VASEP explained thatshrimp crops in major suppliers like India, Bangladesh and Thailand havefinished, causing a decline in supply sources, while many Vietnamese firms havereceived big orders for year-end events.

Experts advised that farmersshould not hastily sell their immature shrimps, but grow big shrimps for betterprofit as the shrimp price.

At the same time, shrimpgrowers should use new technology, while focusing on fostering cooperationtowards value chains to improve product quality and reduce costs.

Meanwhile, businesses shouldconcentrate on developing products with higher added value and higher quality topenetrate high-end markets.

Vietnam’s shrimp exportsstarted falling from April this year when revenue reached only 257.2 millionUSD, down 0.4 percent over the same period last year. The sector sufferedsharper yea-on-year drop of 5.7 percent in May and even 15 percent in June.

The increase in globalshrimp supply sources and the decrease in prices led to a slump in domesticshrimp prices from April. Notably, the price of white-leg shrimp has fallen20-30 percent and is yet to see signs of recovery.

Many internationalorganisations predicted that shrimp output of major world suppliers willrecover, with total production to exceed 3.5 million tonnes in 2018, thehighest point in 10 years.

This year, many big shrimpsuppliers have also given support policies to boost the sector’s growth,resulting in higher production, while demand has decreased.

Tran Van Linh, GeneralDirector of Thuan Phuoc seafood and trading company said that the impacts ofthe increase in USD price compared to other currencies such as Euro, Japaneseyen and Korean won has also been a challenge for shrimp exports.

Linh expressed fears that ifshrimp prices do not increase in the rest of the year, exporters will suffer alack of material sources as farmers reduce their shrimp farms.

Despite the downturn inshrimp exports in the second quarter, revenue in the first six months of thisyear still expanded about 7.6 percent to 1.6 billion USD thanks to growth ofmore than 20 percent in the first quarter. Particularly, exports of white-legshrimp grew 18 percent with 1 billion USD in value.

Source:VNA

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