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COVID-19 vs Vietnam Shrimps Industry

COVID-19 vs Vietnam Shrimps Industry

While other major shrimp exporters such as India, Ecuador, Indonesia, and Thailand
are heavily disrupted by the pandemic, Vietnam has a competitive advantage over rival suppliers thanks to the swift Covid-19 containment. Even though there were setbacks in the first few months of the outbreak, Vietnam shrimp companies have managed to stabilize its production and maintained competitive prices in response to the high demands from the US and EU market.

According to VASEP in the first 9 months of 2020, Vietnam shrimp export has reached $2.7 billion which is an increase of over 10.5% comparing to last year. On the other hand, the COVID-19 pandemic has delayed unloading at many major ports in the world resulting in a severe shortage of shipping container in Asia. Some seafood companies in Vietnam have experienced a rising of shipping costs by 300 to 500 percent. However, VASEP said it will recommend suitable measures to the government to cope with the situation.

Covid-19 vs. vietnam shrimps industry
Covid-19 vs. vietnam shrimps industry

 

Despite the rising of shipping costs, Vietnam shrimp export has continued to grow in the US market – the leading market for Vietnamese shrimp imports. The US is considered the most stable market and has a good demand for shrimp imports especially in the retail segment. Following by the EU market being the 4th largest shrimp importer of Vietnam. We have seen a growth in demand after the EVFTA Agreement took affect from the beginning of August 2020.

With positive signals of shrimp exports in the first 9 months of 2020, Vietnam seafood exporters can continue to expect a boost in production and exports to major markets as well as seeking opportunities to recover from the impact Covid-19 has caused over the years.

Contact the Author: info{at}lpfoods.com.sg

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HEAD ON SHELL ON – Raw or Cooked

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  • Sizes: 30/40 40/50 50/60 60/70
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  • Sizes: 26/30, 31/40, 41/50, 51/60, 61/70, 71/90
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PD & PTO – Raw, Blanched or Cooked

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SHRIMPS MARKET UPDATE OCTOBER 2020

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SHRIMPS MARKET UPDATE OCTOBER 2020

Product description:

The Shrimps market has now entered the off-season stage in a strong demand market pushed by USA and Europe. From Central to South Vietnam, ponds are now empty and farming is on rotation to minimize the risk associated with bad weather.


In the Central of Vietnam the typhoon season has started with the usual strength and power so farming has nearly halved, restarting will happen only after TET 2021 scheduled for February 12, so main harvest commencing around end May. In the South this year started seeding the 2nd crop earlier than last year due to the colder weather brought by La Nina. So now South Vietnam is preparing for the dry season which will be peak in the November/December.


MARKET:
Vietnam factories are flooded by orders with major producers fully booked until year end, especially from the European retailers increasing orders of cooked shrimps after the EU-VN Free Trade Agreement went into the effect + weak availability of certified ASC raw material in other origins.


There is no availability of small sizes as most of it where booked on annual contracts in the months of May-June by the European markets. The medium and big sizes have therefore gone up in prices, reversing the weakness trend of the June-July months.


OUTLOOK:
The price may go up higher in next coming weeks if the weather turns bad, but will remain in line with last year. On the other end, we forecast quantity scarcity.The raw material is getting more scarce due to off season, diseases plus farmers reduce farming quantity. There will be no raw material or very few early next year Jan-April while waiting for the main crops coming in May.

Top 10 largest importers of Vietnamese black tiger shrimp, Jan-Jun 2020
No Markets Value(US$) NO Markets Value(US$)
1 China & HK 74,212,027 6 Taiwan 15,334,938
2 Japan 69,593,480 7 The Netherlands 9,704,753
3 The US 24,170,560 8 Germany 9,130,403
4 Canada 21,087,429 9 South Korea 7,989,579
5 Switzerland 15,501,947 10 Belgium 7,876,519
Top 10 largest importers of Vietnamese white shrimp, Jan-Jun 2020
No Markets Value(US$) NO Markets Value(US$)
1 The US 291,392,878 6 Canada 51,003,971
2 Japan 159,270,436 7 The Netherlands 43,182,310
3 South Korea 134,996,376 8 Australia 42,297,107
4 China & HK 88,589,938 9 Germany 38,519,402
5 The UK 82,470,618 10 Belgium 27,330,093
Top 10 largest shrimp exporters of Vietnam in Jan-Jun 2020
NO COMPANIES Jan-Jun 2020 (US$) Jan-Jun 2019 (US$) Variations (%) Proportion in total seafood turnover (%)
Proportion in total shrimp turnover (%)
1 MINH PHU SEAFOOD CORP 142,009,511 199,593,983 -28.9 4 9.3
2 STAPIMEX 130,554,537 75,396,661 73.2 3.6 8.6
3 MINH PHU HAU GIANG SEAFOOD JOINT STOCK COMPANY 84,613,271 86,132,581 -1.8 2.4 5.6
4 FIMEX VN 70,361,670 68,382,266 2.9 2 4.6
5 VINA CLEANFOOD 48,635,106 38,120,535 27.6 1.4 3.2
6 THUAN PHUOC CORP 38,986,366 39,631,402 -1.6 1.1 2.6
7 TAIKA SEAFOOD CORPORATION 9 CAMIMEX CORP 37,494,843 32,403,111 15.7 1 2.5
8 SVS 27,610,287 26,310,194 4.9 0.8 1.8
9 CAMIMEX CORP 25,314,139 21,305,407 18.8 0.7 1.7
10 UTXI CO 24,556,627 18,371,800 33.7 0.7 1.6
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Nha Trang Seafoods DL394

Nha Trang Seafoods DL394

Farm Description:

Meet this state-of-the-art seafood processing factory located in the beautiful coastal city of Nha Trang, Central Vietnam.

Built under the direct project management of UK construction engineersand food safety consultants, it is approved for Private Label packing at source from UK retailers and can pass any strict audit worldwide.

A responsible company, it is actively investing in farms to have full control of everything it produces and guarantees perfectly safe and high-quality products to consumers.

Responsible farming:

The factory is certified ASC and BAP as the proof of good farming practice and environmental sustainability throughout the supply chain.

This modern, high hygiene, well-controlled processing factory equipped with latest technology on production line, efficient management system and skilled workers brings premium quality shrimp to the markets. Among the machineries present we can mention sizing machine, automated weighting and packing

system, steam cooker, IQF tunnel.

Food safety is of primary importance: the plant therefore focuses on BRC Certification and its meticulous and stringent application through all

processing activity.

Social Responsibility is also a key factor. The plant is certified SMETA and SA 8000.

Why we like this plant

With all reason above, we are confident in this factory and its highest quality standards of freshness and food safety.

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Vietnam Shrimps Exports In The Spotlight – July Update

Vietnam Shrimps Exports In The Spotlight - July Update

Vietnam has exported USD 349.9 million of shrimp in June 2020, an increase of 19.2% compared to June 2019. Annual export up to end June has reached USD 1.5 billion, up 5.7% compared with the first 6 months of 2019.

Annual export up to end June has reached USD 1.5 billion, up 5.7% compared with the first 6 months of 2019.

Vannamei accounted 70.1%, BT 18.2%.

Good growth was recorded in both the USA and China market. UK, Korea and Canada markets also recorded double digit growth.

Notably, processed, value added Vanamei exports are expanding thanks to good quality and reasonable price.

Main driver of Vietnam shrimps exports are the difficulties in Ecuador and India due to Covid and the result of low inventory situation in all major countries.

The pressure on Vietnam shrimps farming and processing is evidence is the fact that prices did not decrease even during peak harvest time as historically happens.

In meantime, the EVFTA (Europe-Vietnam Free Trade Agreement) will take effect on August 1 and the related 0% duty is expected to further push Vietnam shrimp demand.

We recommend interested importers to look into Annual Contracts possibilities soon.

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Vannamei Shrimps 2020 Season in the Covid era:

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Vannamei Shrimps 2020 Season in the Covid era:

By LP Foods

By LP Foods

originally published on lpfoods.com.sg

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Vannamei Shrimps 2020 Season in the Covid era: A consolidated shift in market demand to smaller sizes

Traditionally we know that pond seeding starts in end February (after Lunar New Yean Celebrations) for harvesting in May-June. These 2 months – called peak harvest -historically deliver the lowest prices in the year.

However, this year has been different: Covid appearance briefly wiped away market demand – and therefore shrimp processors demand – making shrimp farmers push back from stocking the ponds. 

Even a 50% discount from he hatcheries on fingerling prices did not convince them to move forward. 

However, market demand recovered faster then expected, due also to the good management of the Covid emergency by Vietnam authorities, which effectively never forced the factories to go on lockdown. So in May shrimp price of 70 piece raw material raised to 105,000 VND (against a cost of about 70,000 VND), making the situation good for shrimps farmers to start stocking. 

We therefore expect an healthy harvest around August, but prices will not lower much as demand trend is good, and overall harvest quantity is expected to be -20% year on year. 

But the market demand has strongly shifted to 80-120 pieces raw material. Therefore bigger size are expected to be a buying opportunity with competitive pricing for buyers. 

Vietnam’s shrimp sector has been reaping the benefits of the country’s successful containment of the COVID-19 outbreak, with growth seen in export and farming activities. 

Despite the aggressive nature of the Covid, the Vietnam’s Authorities gain the best country successful in winning its fight against Covid-19, official data from Vietnam government shows that the country has experienced more than 50 consecutive days without any new cases of the coronavirus in the community. Meanwhile, the number of cases is much higher in other major shrimp-producing countries like Thailand, India, Indonesia where farming and processing activities have been severely disrupted. 

Vietnamese shrimp companies and farmers, though facing headwinds due to the disruptions in their primary export markets in the first months following the outbreak, have been performing well recently. Total shrimp export value rose slightly. 

Questions or comments ? Email the author at [email protected]

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COVID-19 vs Vietnam Shrimps Industry

While other major shrimp exporters such as India, Ecuador, Indonesia, and Thailand
are heavily disrupted by the pandemic, Vietnam has a competitive advantage over rival suppliers thanks to the swift Covid-19 containment. Even though there were setbacks in the first few months of the outbreak, Vietnam shrimp companies have managed to stabilize its production and maintained competitive prices in response to the high demands from the US and EU market.

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