Shrimp farmers burdened by rising costs: Feed prices climb

Proactive farming helps reduce the impact.

Feed has always been the largest expense in shrimp farming, accounting for 55-65% of total production costs. Since early June 2026, several aquafeed manufacturers have increased prices for certain shrimp feed products by VND 1,200-1,500/kg, directly affecting farming profitability.

However, observations in high-tech shrimp farming areas in Can Tho City show that production continues as usual despite rising input costs. Major companies are maintaining their production plans and expanding export markets.

According to Vo Van Phuc, CEO of Viet Nam Clean Seafood Joint Stock Company (Cleanfood), Viet Nam's shrimp industry is being affected by multiple factors simultaneously. In addition to rising fuel costs, freight rates, global inflation, and weakening demand in major markets, higher aquafeed prices are also placing significant pressure on business operations.

Phuc noted that for companies that have invested systematically in farming areas, processing facilities, and export operations, cost pressures do not alter their long-term development strategies. Instead, these challenges serve as motivation to innovate, optimize production, and improve operational efficiency.

Cleanfood currently owns approximately 280 hectares of shrimp farms, producing 4,000-6,000 tons of shrimp annually, along with a processing plant employing around 3,000 workers. The company operates a fully integrated business model covering farming, processing, and exporting. Thanks to its control over raw material supply and its long-term sustainable development strategy, the company has continued to grow despite industry-wide challenges.

Not only Cleanfood, but many major industry players also view higher aquafeed prices as a foreseeable challenge. Hoang Thanh Vu, Deputy CEO of Sao Ta Foods Joint Stock Company, said price increases are difficult to avoid as feed manufacturers themselves face rising raw-material costs.

According to Vu, higher feed prices will undoubtedly affect production efficiency. However, shrimp farmers can still achieve strong profitability if farming operations are managed effectively.

Clean ponds, healthy shrimp, lower costs, higher profits

Bui Thi Huynh Hoa, Founder and CEO of Viet Duc Science Co., Ltd., a company specializing in biological solutions and microbial products for shrimp farming, believes that reducing production costs amid rising feed prices depends not only on feed costs but also on effective environmental and disease management.

When water quality becomes unstable and pond bottoms accumulate organic waste, harmful bacteria can proliferate. As a result, shrimp consume less feed, absorb nutrients less efficiently, and experience higher feed conversion ratios (FCR), leading to additional production costs.

To improve efficiency, many modern shrimp farming models now prioritize the use of probiotic and biological solutions to treat water, clean pond bottoms, control toxic gases, and maintain beneficial microbial populations. In particular, controlling Vibrio bacteria levels is considered a key strategy for reducing the risk of intestinal diseases, white feces syndrome, and other health issues affecting shrimp.

A stable pond environment also helps limit harmful pathogens such as cotton-like fungi and reduces pressure from EHP (Enterocytozoon hepatopenaei), one of the major causes of slow shrimp growth, extended farming cycles, and higher production costs.

Huynh Hoa emphasized that when pond bottoms are clean, water quality remains stable, and microbial ecosystems are balanced, shrimp become healthier, absorb feed more efficiently, and grow more uniformly. As the shrimp industry faces increasing cost pressures, combining proactive environmental management with effective biological solutions is becoming a sustainable approach to reducing disease risks, lowering costs, and improving profitability.

The key to lowering production costs

As feed prices continue to rise, many businesses are focusing not on reducing output or shrinking operations, but on lowering production costs per kilogram of market-size shrimp.

According to Vo Van Phuc, the shrimp industry needs a technological revolution. He stressed that Viet Nam possesses advantages in farming experience, processing capabilities, and a skilled workforce. However, to fully capitalize on these strengths, production costs must be reduced.

This requires farmers and businesses to find solutions for developing domestically produced feed sources that can compete with those available globally.

Hoang Thanh Vu added that producing 1 ton of market shrimp typically requires approximately 1-1.5 tons of feed, depending on farming methods and stocking density.

For small-scale farmers, feed usually accounts for around 60% of production costs. In high-tech farming systems, however, this ratio can be reduced to approximately 40%.

One of the most important performance indicators is the Feed Conversion Ratio (FCR), which measures the amount of feed required to produce 1 kilogram of market-size shrimp. With effective pond management, precise feeding practices, and appropriate technology, businesses can maintain an FCR of 1.2 or lower, significantly reducing feed consumption.

Sao Ta currently owns approximately 540 ha of shrimp farms and operates three shrimp processing plants, placing it among Viet Nam's top three shrimp exporters. In the first five months of 2026 alone, the company produced more than 10,000 tons of market shrimp. It is also considering investing in an aquafeed production plant to reduce dependence on external suppliers.

According to Vo Van Phuc, technology is now used at almost every stage of large-scale shrimp farming, from water-quality management and dissolved-oxygen monitoring to disease surveillance and automated feeding systems. As a result, feed is used more efficiently, waste is minimized, and production costs are significantly reduced.

$ 1 = 26,448 VND - Source: Vietcombank.