Shrimp farmers burdened by rising costs as shrimp prices plunge

Settling ponds run dry in a key shrimp-farming region

Under the blazing June sun along the coastal dike road of the Nam Song Hau route connecting Can Tho City to Ca Mau Province, we visited major shrimp-farming areas to observe production conditions as farmers struggle under mounting pressures.

Unlike the bustling atmosphere of previous profitable shrimp seasons, many intensive shrimp farms are unusually quiet these days. Aerators continue to churn the pond surfaces, but the worry on farmers’ faces is hard to hide.

Following the Bac Lieu coastal dike to Hamlet 12 in Vinh Hau Commune, Mr Tran Dang Cao, a local super-intensive shrimp farmer, took us by motorbike to his family's farming area located about 500 meters from his house.

As we rode along pond embankments under the scorching sun, I could hear the sighs and expressions of frustration from a man who had spent more than a decade in the shrimp-farming industry.

"At these shrimp prices, farmers are being pushed to the brink. Since the beginning of the year, feed costs have gone up, input costs have gone up, workers' wages have gone up, only shrimp prices have gone in the opposite direction," Cao said.

Stopping beside a settling pond spanning several thousand square meters, Cao pointed to the cracked mud at the bottom. The water reserve, once considered the "lungs" of his high-tech farming system, is now reduced to a few scattered puddles.

"This pond stores water for treatment and water exchange for the grow-out ponds. Now it's completely dry. I've never seen a year as difficult as this one," Cao said.

The dry settling pond in this high-tech area starkly illustrates the constant and severe financial pressures facing shrimp farmers, not just temporary fluctuations.

Prices plunge, farmers merely "rolling old money into new crops"

On his nearly 1.8-hectare farm, Cao operates three grow-out ponds covering about 3,600 square meters of water surface, stocking around 650,000 shrimp under a two-stage system consisting of nursery and grow-out phases.

After 85 days of cultivation, the shrimp have reached a size of about 35 shrimp/kg. In previous years, this would have been the time when farmers began calculating their profits. This year, however, every calculation has become uncertain. According to Cao, production costs for 30-shrimp/kg shrimp currently range from VND 90,000 to 110,000/kg, while market prices are only around VND 100,000 to 110,000/kg.

"Only farms with very high productivity can hope to break even. Any mortality or disease outbreak means a loss," Cao sighed.

Prices for 30-shrimp/kg shrimp have fallen by around VND 40,000/kg compared with the same period last year. Meanwhile, feed, seedstock, electricity, labor, medicines, and biological products have all become more expensive.

With an output of around 10 tons, if shrimp prices reach approximately VND 110,000/kg, Cao can still earn around VND 200 million after deducting all expenses. However, that amount must immediately be reinvested in seedstock, equipment repairs, and preparation for the next crop, leaving little return considering the effort and risks involved.

According to farmers' calculations, prices for 30 shrimps/kg need to remain at VND 130,000/kg or higher to ensure profitability and sustainable production.

Cao is not alone. Mr Long Van Nghia, Director of Long Manh Seafood Company in Vinh Hau Commune, also could not hide his concerns. His shrimp stock is developing evenly, but the satisfaction of a good crop is no longer what it once was.

According to Nghia, production costs for shrimp sized 50-80 shrimp/kg are currently around VND 80,000/kg, while selling prices are only about VND 85,000/kg. After months of care, farmers earn only a few thousand dong per kilogram, and any losses in survival rates can quickly push them into the red.

For 30-shrimp/kg shrimp, prices of VND 100,000-110,000/kg are only acceptable under favorable weather conditions and good shrimp performance. If unseasonal rains or disease outbreaks occur, pushing production costs higher, such prices are insufficient to cover expenses.

"Shrimp farming nowadays is basically just using old money to generate new money. There's no real accumulation. If performance falls short, losses are severe," Nghia said.

His current shrimp crop has reached sizes of about 60-67 shrimp/kg. Traditionally, farmers would continue growing the shrimp to larger sizes to obtain better prices. However, with larger shrimp prices remaining weak and sales becoming increasingly difficult, he is considering harvesting early.

"In the past, farmers wanted shrimp to grow as large as possible. Now, many just hope to sell them and recover their capital. If every crop simply consumes the capital from the previous one, it's hard to know how much longer we can hold on", Nghia reflected.

Untangling the bottlenecks to sustain Viet Nam's shrimp capital

Mr Pham Van Muoi, Deputy Director of the Ca Mau Department of Agriculture and Environment, said authorities are closely monitoring environmental conditions and disease developments in key farming areas. Farmers are being advised to strictly manage water quality parameters, secure water supplies, and follow proper technical procedures to reduce risks during seasonal transitions.

Regarding infrastructure and water supply challenges, the sector will work with local authorities to review issues and propose solutions to minimize losses for farmers.

At the local level, Mr Tran Hoang Khai, Chairman of the People's Committee of Vinh Hau Commune, noted that Vinh Hau is one of the province's key shrimp-farming areas. The commune currently has nearly 14,000 hectares of shrimp farms, including around 2,000 hectares of high-tech shrimp production, with annual output reaching approximately 121,000 tons.

According to Khai, in response to falling shrimp prices, rising input costs, and water supply challenges, local authorities are encouraging farmers to strengthen production linkages.

"Vinh Hau is gradually establishing shrimp farming cooperatives based on water-recycling systems while promoting cooperative economics and value-chain linkages to reduce production costs, improve efficiency, and enhance the competitiveness of local shrimp," Khai said.

The commune is also advising farmers to proactively rehabilitate production areas, dredge settling ponds, and utilize available water reserves to the maximum extent possible as a short-term response. Local authorities are supporting farmers by allowing on-site soil excavation to reinforce pond embankments and improve pond systems, thereby helping to minimize losses.

According to the Ca Mau Department of Agriculture and Environment, the province currently has approximately 418,000 hectares of shrimp farming area, maintaining its position as Vietnam's largest shrimp-producing province, including more than 32,000 hectares of intensive and super-intensive shrimp farming.

$ 1 = VND 26,442 - Source: Vietcombank.