Shrimp farmers burdened by rising costs: What's driving it?

Rising costs put shrimp farmers under pressure

In early June 2026, several aquafeed manufacturers raised prices for certain shrimp feed products by VND 1,200-1,500/kg. This marked the third price increase since the beginning of the year, reflecting mounting pressure from rising global raw material costs.

According to industry sources, prices of key feed ingredients, including fishmeal, fish oil, soybeans, wheat, and nutritional additives, have remained elevated due to geopolitical conflicts, higher freight costs, and prolonged disruptions to global supply chains. The consecutive feed price increases have significantly raised shrimp production costs, with feed already accounting for 55-65% of total farming expenses.

What is even more concerning is that feed costs are rising while market shrimp prices have fallen to their lowest levels in years. The widening gap between production costs and selling prices is eroding farmers' profits, leaving many at risk of losses or forcing them to scale back production unless conditions improve.

Beyond higher feed costs, shrimp farmers are also facing rising expenses for high-quality seedstock, electricity, biological products, pond water treatment, and disease prevention. These factors continue to increase total investment per production cycle, while profitability remains uncertain. As a result, farmers are becoming more cautious when deciding when to stock ponds, determining stocking densities, and implementing cost-control measures to minimize risks and maintain production efficiency.

No signs of raw material shortages

Dr Ho Quoc Luc, Chairman of the Board of Directors of Sao Ta Foods Joint Stock Company, stated that many aquafeed manufacturers have recently increased prices by VND 1,000-2,000/kg. The primary reasons are higher international freight costs resulting from tensions and conflicts in the Middle East, as well as exchange rate fluctuations.

"Rising feed prices are certainly unfavorable at a time when the shrimp industry is already facing numerous challenges. They increase production costs and reduce farmers' profits. However, for well-managed farming operations, the current feed price increases only reduce overall farming profits by around 10%," Dr Luc explained.

He emphasized: "Companies are certainly not colluding to raise feed prices. Every business wants competitive pricing to strengthen its market position, not to work together to keep prices artificially high."

For Sao Ta Foods, raw material supplies remain secure thanks to its own farming areas. As the company is currently in its peak harvesting season, shrimp supplies are abundant and sufficient to meet processing demand for exports. Therefore, the company has not experienced any shortages of raw materials at this time.

Solving the cost challenge through value chain linkages

According to Ms Kim Thu, a shrimp market analyst at the Viet Nam Association of Seafood Exporters and Producers (VASEP), during periods of high production costs, farmers should carefully calculate their break-even point, select appropriate stocking densities, improve environmental management, and increase feed efficiency. Joining cooperatives, farmer groups, or integrated value chains can also help reduce risks associated with purchasing inputs and marketing products.

For aquafeed manufacturers, providing stronger technical support, keeping farmers informed about raw material market trends, and offering practical solutions to improve feed efficiency can help producers better adapt to rising costs.

For seafood processors and exporters, maintaining close partnerships with farming areas, supporting raw material quality control, and building stable supply chains have become increasingly important as international competition intensifies.

The entire shrimp value chain also requires support from government agencies through policies that encourage domestic raw material development, research into alternative protein sources, greater use of agricultural and seafood by-products, improved farming infrastructure, environmental monitoring, disease warning systems, higher-quality seedstock, and the expansion of cooperatives and farmer associations.

Recently, GrowMax Group announced that it would maintain current shrimp feed prices to help farmers cope with difficult conditions. The company acknowledged that this decision was not easy, as feed manufacturers themselves are under significant pressure from rising raw material costs, transportation expenses, and exchange rate fluctuations. Nevertheless, GrowMax chose to stand by farmers, believing that their stability forms the foundation for the sustainable development of the entire industry. According to the company, Viet Nam's shrimp sector can only achieve sustainable growth if farmers remain in business.

Higher feed prices may simply reflect temporary market fluctuations, but the shrimp industry's resilience ultimately depends on the strength of cooperation among every participant in the value chain. From farmers and input suppliers to seafood processors, exporters, and government agencies, mutual support during difficult times strengthens the industry's overall competitiveness.

According to data from the International Monetary Fund (IMF), global fishmeal prices reached $ 2,423.34/ton on June 1, 2026, an increase of nearly 68% compared with the same period last year. This sharp rise is placing considerable pressure on aquafeed manufacturers, as fishmeal remains one of the most important high-protein ingredients in shrimp feed formulations.

Historically, global fishmeal prices have reached a high of $ 2,423.34/ton and a low of $ 373.16/ton.

Notably, fishmeal prices have risen sharply during the first three months of the second quarter of 2026. Prices increased from $ 1,992/ton in March to $ 2,109/ton in April, $ 2,389/ton in May, and $ 2,423/ton in June. In just three months, fishmeal prices climbed by more than $ 430/ton, equivalent to an increase of approximately 22%.

When shrimp farmers no longer have to shoulder these risks alone, Viet Nam's shrimp industry will be better positioned to overcome current challenges, strengthen its competitiveness, and maintain its position in global markets.

$ 1 = VND 26,456 - Source: Vietcombank.