Shrimp and fish depreciate, seafood exports reach 9 billion USD

Due to many difficulties in the market, especially the export price of key seafood products sharply decreasing, this year seafood exports are expected to reach the target of 9 billion USD, 1 billion USD lower than the goal set at the beginning of the year.

Illustration. N.Thanh

Gloomy prices of shrimp and catfish

According to the latest information from the General Department of Fisheries (Ministry of Agriculture and Rural Development), in the first 10 months, the total fishery production was estimated at nearly 6.7 million tons, up 5.3 over the same period last year. The value of seafood export is estimated at US$7.06 billion, down 2.4 percent of over the same period last year. In particular, shrimp exports reached US$2.76 billion; Pangasius exports reached US$1.66 billion.

Since the beginning of the year, the noticeable point in seafood export is that the prices of key products such as shrimp and catfish are not very satisfactory. Speaking at the information exchange with the media this morning (November 4), Mr. Tran Dinh Luan, Director General of the General Department of Fisheries (MARD) said that in the first months of the year, the price of shrimp and pangasius has fallen.

With shrimp, Vietnam has a good harvest and other shrimp exporting countries have a good harvest, so the price decreases. However, since the second half of this year, especially since September, shrimp prices have risen again. In the Mekong Delta, there are five types of shrimp. Different types of shrimp have different quality and different prices. Shrimp farmed using clean technology, completely closed, and controlled the whole farming process, traceability. They are still sold at very high prices.

For Pangasius, in 2017 and 2018, the price of Pangasius increased to 27,000-28,000 VND / kg, even the price reached over 30,000 VND / kg, resulting in a booming raising area. That is why the price of Pangasius at the beginning of this year dropped sharply.

According to Mr. Luan, in fact, even with Pangasius prices low, households in the chain are selling at 1,500-2,000 VND / kg. Last year, some households at the time of rising pangasius price broke contracts with enterprises and sold fish. This year, the fish price drops, fish farmers want to return to sell to businesses.

"Restructuring the industry has clearly guided the organization of association, linking from seed, production to processing and consumption. Some people do not participate in the association, so they cannot sell it, status of selling below cost price,” Mr. Tran Dinh Luan said.

Currently, the price of material shrimp type 1 (size 100) in the Mekong Delta is about 95,000 VND / kg; while the central and northern regions are about VND 100,000 / kg.

For Pangasius, raw material price currently fluctuates around 20,000-22,000 VND / kg. For households participating in the chain, the price of fish is higher, ensuring a profit of 1,000 -2,000 VND / kg. As expected, the supply of raw fish is still large enough to meet the needs of processing and exporting.

Exports reach 9 billion USD

The General Department of Fisheries forecasts that shrimp and pangasius production this year will hit and exceed the plan, ensuring the supply of raw materials for processing and export factories (Pangasius is still about 500,000 tons; black tiger shrimp is estimated at more than 100,000 tons; vannamei is estimated over 180,000 tons). However, the price of exported shrimp and catfish will be difficult to increase in the near future.

For seafood export in general, the whole year is expected to reach 9 billion USD. This figure has decreased by US$1 billion compared to the plan set earlier in the year.

Mr. Tran Dinh Luan said that low seafood export turnover this year is due to the decline in market demand, especially the decrease in Pangasius and shrimp prices. For shrimp, there is a market price reduction of up to 1 USD / kg. The export volume is still good, but the falling price makes the total value decrease.

Around the problem of seafood export, Deputy Minister of Agriculture and Rural Development Phung Duc Tien expressed his opinion that the world economic situation is declining leading to reduced demand. Besides, the Chinese market with 1.4 billion people also provides conditions for traceability and food safety.

Authorities have instructed people but there are limited changes. However, at the end of this year, people and businesses have caught up with changes from the market, believing that the problem in 2020 when exporting to China will be solved quickly.