Vietnams shrimp accounts for the largest market share in Australia

Vietnam's shrimp imports into Australia increased sharply in the first months of 2021, helping Vietnam maintain its position as the largest shrimp supplier to this market.

Harvesting shrimp in the Mekong Delta.

According to the International Trade Center (ITC), the total value of Australia's shrimp imports in the first four months of 2021 reached US$ 106.28 million, up 35% over the same period in 2020.

The most remarkable thing about Australia's shrimp imports in the first 4 months of this year is that this market has greatly increased the import value from Vietnam. Specifically, Vietnam's shrimp imports into Australia during this period reached US$ 65.75 million, up 83.7% over the same period in 2020.

With this rapid growth, Vietnam has currently seen the largest shrimp supplier to Australia.

The proportion of Australia's shrimp imports from Vietnam also increased sharply, from 45.5% in the first 4 months of 2020 to 61.9% in the first 4 months of 2021. Meanwhile, Australia's imports have decreased from Thailand and China, two major suppliers to Australia following Vietnam.

Australia is one of the countries with very high requirements for compliance with biosafety and food safety and quarantine compared to other markets as Australian consumers set very high standards, and these standards are supported by a series of consumer protections in every state in the country.

Boosting trade promotion, building a value chain for shrimp products, providing new products with high added value, quality, guaranteed origin, and clear labels were the factors that enterprises should pay attention to when exporting to this market.

According to Vietnam Association of Seafood Exporters and Producers (VASEP), Vietnam's shrimp exports to Australia increased sharply in the first half of this year.

Specifically, in the first 5 months of 2021, shrimp exports to Australia increased by 79.2%, with a total value of more than US$ 71.8 million. In May 2021, shrimp export value to this market reached US$ 17.14 million, up nearly 144% over the same period last year.

Vietnam's shrimp products exported to Australia in the first half of this year are diverse. In which, mainly products of white-leg shrimp and frozen black tiger shrimp. In addition, Vietnam has exported to Australia such as dried shrimp, frozen breaded white shrimp, other processed shrimp, etc.

Although the price of shrimp imported from Vietnam is still higher than other competitors from US$ 1-2.71 per kilogram, Vietnam's shrimp are still well-competitive in Australia.

Last year, Australia's shrimp imports were affected by the Covid-19 pandemic. As a result, nationwide shrimp consumption fell sharply due to the social distancing order. However, since the end of 2020 and the beginning of this year, many importers, suppliers, and retail distribution channels have adapted to the epidemic to promote business activities again.

Many sales models have been generated based on home delivery services. They prioritize card payments and request shoppers to comply with distance requirements. Wholesale products can also be purchased from the system of stores, and restaurant chains, local seafood suppliers with pre-orders.

Australia is a potential shrimp import market in the countries under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). In the past two years, the export value of Vietnam's shrimp to the Australian market has been very positive, especially white-leg shrimp.

Mrs. Le Hang, Deputy, Director of Training Center and Trade Promotion VASEP (VASEP.PRO), said that the strong growth in shrimp exports to Australia in the first months of 2021 had taken this market from 10th position to 4th position among Vietnam's biggest export markets.

The increase in the number of shrimp exporting enterprises to Australia with the increase in export turnover of large companies brings positive results for Vietnam's shrimp exports.

In the first two months of this year, Minh Phu Group alone accounted for 37% of total shrimp export value from Vietnam to Australia, which has jumped 159% compared to the same period of last year.

Besides Minh Phu, companies such as CASES, Agrex Saigon, SEAVINA, Quang Minh Seafood, Hai Sang Seafood, O&H LOONG PTY, Fimexvn ... are all in the top ten shrimp exporters to Australia.