Minh Phu investing in mangroves, automation
Shrimp producer and exporter Minh Phu has two main investment projects on the go for now, executive Henry Hien Phan told Undercurrent News: certifying larger areas of Vietnam’s mangrove-farmed black tiger as organic, and automating its factories.
Minh Phu expects to produce around 60,000 metric tons total shrimp in 2017; 30% of that is black tiger (18,000t), and 70% of that in turn (12,600t) is organic, mangrove-farmed, he said.
“There’s very high demand for organic black tiger, as not a lot is produced. Demand is mainly from the US, Japan and Korea.”
He noted that European markets used to take this product as well, but have moved more to large vannamei lately, perhaps due to economic pressures, Hien suggested.
The company operates two plants, and its aim is to convert more than 50% of production to automated systems by 2020, he said.
Labor costs are rising in Vietnam, watched in particular by pangasius processors whose margins are perhaps already tight. In 2018 an increase in the minimum wage is expected.
In January 2017 Minh Phu established a dedicated subsidiary — Minh Phu Mangrove Shrimp Social Enterprise — in Ca Mau.
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