Vietnams shrimp farming industry requires value chain links

The sharp falls in shrimp prices recently has reminded producers of the importance of value chain links which would help reduce the risks and lead to the shrimp industry growing further.

Shrimp farming in Ca Mau province

The comment was made by Chau Cong Bang, Deputy Director of the Ca Mau Department of Agriculture and Rural Development, at a conference on links in the shrimp industry, held on May 25.

He said that the shrimp farming in Ca Mau and the neighbouring provinces has been strongly assisted by non-governmental organisations in recent years, through technical support as well as input and output links.

But if the origin, quality and environment of shrimp products cannot be traced, farmers will face significant difficulties in selling their products, therefore links in value chains are a must, Bang emphasised.

After two years of implementing a shrimp value chain cooperation project in Ca Mau, Bac Lieu and Soc Trang provinces, there are now 25 partnerships for selling shrimps, with three cooperatives certified by the Aquaculture Stewardship Council, and an additional nine expected to be recognised in 2018.

However there are still a number of problems, such as weak financial capacity, hindrances to partnerships as a result of group interests, and a lack of sanctions for violation of or failure to comply with the terms of partnership contracts.

Currently the shrimp farming costs in Vietnam, and the key regions of Ca Mau, Bac Lieu and Soc Trang in particular, are higher than those of other regional countries.

As such, links in input, output and production are the most effective way to reduce costs and enhance the competitiveness of Vietnam’s shrimp industry.

In that way, small shrimp farmers are guaranteed that their products will be sold, while enterprises will have a stable supply.