After nearly 3 years of continuously staying at a low level, the price of whiteleg shrimp in the Mekong Delta of Vietnam has increased sharply due to tight supply.
With an increase of VND15,000-45,000/kilogram depending on sizes, shrimp farmers in the Mekong Delta are able to achieve high profits. However, many experts advise farmers not to rush to expand shrimp farming because of the risk of oversupply, especially in the context of Vietnam’s shrimp price depends heavily on the Chinese market.
According to traders in Soc Trang Province, the price of raw shrimp on recent days is unpredictable, with days increasing up to VND3,000/kilogram. In early November, shrimp with sizes of 40 shrimp/kilogram was sold at nearly VND120,000/kilogram; it is now increased by VND24,000/kilogram, reaching the threshold of VND144,000/kilogram, the highest in the last 4 years.
In Ben Tre Province, the price of raw shrimp is more expensive. Shrimp with sizes of 20-30 shrimp/kilogram is now offered by traders for VND175,000-190,000/kilogram, an increase of more than VND50,000/kilogram compared to the previous three months. The price of shrimp with sizes of 100 shrimp/kilogram also increases slightly at over VND100,000/kilogram.
Processing, Import and Export:
Shrimp processing and export businesses in the Mekong Delta of Vietnam in recent years have heavily invested in building their own shrimp farming areas.
Up to now, many large shrimp processing and exporting businesses in Soc Trang Province have built their own shrimp farms with international certifications and traceability for hundreds of shrimp hectares.
Sao Ta Company, for example, is preparing to put its new 90-hectare farming area into operation in the 2020 crop. With this farm, the company can actively produce about 30% of its raw shrimp with international certifications, such as ASC and BAP. Vietnam Clean Food Corporation (VINA CLEANFOOD) also has its own shrimp farm of over 100 hectares certified with ASC standard. The corporation reveals that it is continuing to expand the total farming area.
Similarly, businesses such as Khanh Sung, Stapimex and Ut Xi also invest in farming areas that meet international standards. They associate with farmers’ cooperatives in Soc Trang Province for the consumption of ASC certified products.
Other businesses in provinces with large shrimp farming areas such as Bac Lieu, Ca Mau, Kien Giang Provinces also build their own farms, or contract with local cooperatives to invest in shrimp farming with international standards. In Ca Mau Province, taking advantages of natural conditions, businesses have cooperated with farmers to implement organic shrimp models in the form of shrimp – forest or shrimp – rice farming.
By Sonia LV