Fear of 'starving' for material shrimps by the end of the year

Prices of shrimp plunge

The 6th Vietnam Shrimp Forum in 2021 this September 1 was organized to explore ways to overcome challenges for the shrimp sector. Harvesting, transportation, input supplies, and seed are the problems happening in the Covid-19 pandemic.

As Director Tran Dinh Luan of the Directorate of Fisheries mentioned, despite the fact that brackish water shrimp output increased by 1% year on year in the first eight months of this year, prawn prices decreased by VND 10,000-20,000 per kg interannually, and even by VND 20,000 per kg in some regions.

Several farmers in certain regions have chosen to stop production due to the fact that several shrimp buying and processing companies, as well as input material service providers, have been forced to close their doors in order to avert a Covid-19 pandemic.

According to Pham Anh Tuan, Vice Chairman of the Vietnam Fisheries Society, there are presently two matters concerning traffic and labor that must be resolved in order to adapt to the pandemic and maintain output.

Additionally, the association's representative suggested that the Directorate of Fisheries establish a hotline to summarize and listen to the concerns of companies and individuals in the current pandemic environment, thus helping in a quick resolution.

Fears of material scarcity in the latter months of the year

From a commercial perspective, Le Van Quang, Chairman of the Board of Directors of Minh Phu Seafood Corporation (Minh Phu), said that although only 25% of employees are presently engaged in production, the factory's output has remained at 50% owing to the promotion of purchasing big size shrimp (10-45 shrimps per kg).

This is a critical element in sustaining production, trading products, and responding to market demands, particularly throughout the time from now until the end of the year.

“At the moment, the plant is unable to produce, which means it cannot purchase shrimp for people; furthermore, transportation from the agricultural region to the factory is very difficult. Farmers do not store seeds in response to this scenario, and it is anticipated that the last three months of the year would be a period of high consumption, resulting in a raw material scarcity. Even if companies resume regular operations after the outbreak, there would be a severe scarcity of raw materials, "Quang said.

According to Minh Phu's spokesperson, the price of large-sized shrimp is reasonable, there is a high demand, and it is thus suggested that people release them sparingly. If you usually stock 250-350 heads per meter square, you should now stock 100-120 heads for big size growing; at 10 - 45 heads per kilogram, the whole will sell very well at a fair price.

"Once the new normal is established, Minh Phu will increase the price of goods," Quang said.

Tuan agreed with Le Van Quang's assessment, stating that when considering demand, it is clear that the market is in need and that shrimp consumption will resume between now and the end of the year.

As a result, the Vice Chairman of the Fisheries Society said that it is essential to advise farmers on the most suitable farming method for the circumstances. For instance, in intensive farming, it is required to stock more broadly to mitigate risk and to meet market demand.