VIET NAM SHRIMP UPDATE IN WEEK 42

VIET NAM SHRIMP UPDATE IN WEEK 42

I/ GENERAL SITUATION

Although shrimp prices in this week 42 still increased but a Covid outbreak erupted in a shrimp factory in Bac Lieu and new infected cases in Mekong Delta are increasing again have made farmers and shrimp factories being worry a lot.

The outbreak in Bac Lieu has found 122 cases until today, the first finding was in Tan Khoi company in Gia Rai town and the send finding was in Chau Ba Thao company. Both linked companies mainly preprocess HOSO into HLSO raw materials, they use seasonal workers from many local wards in Gia Rai and Dong Hai districts, the workers normally work and return homes and sometimes they move to other factories to work as well, so the risk of cross-contamination in communities is very high.

Soc Trang, Bac Lieu and Ca Mau are three main provinces farming and processing shrimp in Mekong Delta, if Covid becomes worse then factories will face disruption of workforce, also disruption of raw materials and other materials for farming, processing.

Mr. Vo Van Phuc - Chairman of the Board of Directors of Vietnam Clean Seafood Joint Stock Company - said “The outbreak of Covid epidemic will lead to a more serious problem that the shrimp industry will collapse, pulling chains for other industries. In my opinion, the central government needs to urgently allocate vaccines to Mekong Delta provinces to vaccinate people and workers. Soc Trang, Bac Lieu, Ca Mau and other provinces in the region are the labor reserve for HCMC and Binh Duong. If this area is attacked by the epidemic, it will disrupt the labor supply chain for the southern provinces and cities".

II/ SHRIMP PRICE

The prices of Black tiger: still flat for 20, 30, 40 pcs/kg, and an increase of 10,000 vnd/kg (~ 0.44 usd/kg) for 50, 60 pcs/kg compared with the previous week.

The prices of Vannamei still increased significantly in this week 42, especially strongly increased for medium and small sizes.

I think, factories are being in need of medium – small sizes for markets like Japan, China and other Asian countries for end year holidays. The demand of shrimp from markets at the end of 2021 is being very huge because Covid pandemic seriously devastated the main shrimp production countries like Viet Nam, Indonesia and Thailand, meanwhile; India shrimp industry also has just recovered from Covid’s devastation in early this year and India just strongly supplies to USA, not strong for EU, Japan and they (India) scare China for holding containers at ports as China done.

For sure, shortage of shrimp raw materials in Viet Nam in the last month of 2021 is obvious and shortage in other countries is possible too. Well, I think, even Covid threat in Mekong Delta is potential now but if the situation is still under control then shrimp prices in next week 43 might increase furthermore, factories will compete together to collect shrimp to process and ship for buyers as fast as possible. This strong competition is to take advantage to recover and compensate for losses in the lockdown time, take advantage the high demand of markets and also don’t leave buyers without products, if not buyers will go away to find new suppliers.

Written by SEABINA GROUP