Seafood Exports Estimated at $2.81B in Five Months

Export Recovery Signals

The shrimp exports of Cà Mau province are showing signs of recovery, as prices for shrimp materials have started to inch up and stabilize. This positive trend in the shrimp market is bringing hope and optimism to both farmers and companies in the region.

According to the Cà Mau provincial Industry and Trade department, the export volume had decreased by 20% in the first four months of the year due to the impact of the COVID-19 pandemic. However, the situation has improved, with the estimated export volume reaching $299 million, only 10% lower than the same period last year.

Exporters’ Success Stories

One success story is Minh Cường Seafood Import-Export Processing JSC in Tắc Vân commune, Cà Mau city. Although the company’s export value had not reached $1 million in the past three months, it saw a significant improvement in April, exporting goods worth $4 million, equivalent to the same period last year.

Minh Cường’s Director, Nguyễn Minh Tuấn, attributed this positive development to the reopening of major importers such as China and the EU. Additionally, Vietnam’s successful management of the COVID-19 outbreak has given exporting companies, particularly those in the shrimp industry, an advantage over competitors in other countries.

As a result, Minh Cường remains committed to its goal of generating $35 million from shrimp exports this year. However, many medium and small-sized companies are currently facing challenges due to a lack of capital for purchasing shrimp materials.

Deputy Director of the provincial Industry and Trade department, Dương Vũ Nam, explains the changeable market conditions. Traditional buyers of Vietnamese shrimp, including China, South Korea, Japan, and certain European countries, have relaxed their preventative measures against COVID-19 and opened up their import markets.

Furthermore, major shrimp suppliers like India and Indonesia are struggling with the pandemic, leading to a predicted decline in global shrimp output in the coming months. This presents an opportunity for Vietnamese shrimp producers.

Additionally, the upcoming enforcement of the EU-Vietnam Free Trade Agreement (EVFTA) in July will provide tariff advantages for Vietnamese companies. However, entering the demanding EU market also entails potential risks. Therefore, it is crucial for the province’s companies and shrimp farmers to work together, meet required standards, and seize the recovery opportunity.

Rising Shrimp Prices

The increase in exports within the province has contributed to a rise in shrimp prices. According to the statistics from the provincial department of Agriculture and Rural Development, black tiger shrimp of size 20 pcs/kg is being sold at 175,000 dong, while size 30 pcs/kg is priced at 145,000 dong, showing a slight increase from mid-March.

White leg shrimp of size 100 pcs/kg are being sold at 86,000 dong/kg, and this price has remained stable since May. It represents a 20% increase from the lowest point during the peak of the pandemic. Factories are driving up prices as they buy shrimp for stockpiling, while the scarcity of shrimp supply due to reduced stocking by farmers, along with high salinity during the dry season, has further contributed to the price increase.

It is expected that shrimp prices will continue to rise in the coming months, according to Nguyễn Văn Lâm, Director of Cái Bát Aquaculture Service Cooperative in Hoà Mỹ commune, Cái Nước district.

Future Plans and Support

To promote the recovery and development of the fisheries industry, Chairman of Cà Mau People’s Committee, Nguyễn Tiến Hải, has directed relevant departments, sectors, and authorities to implement urgent measures. These measures include boosting intensive, super-intensive, and extensive shrimp farming practices.

Chairman Hải emphasized the importance of forecasting the demand and prices of different types of shrimp to help farmers achieve successful harvests.

Furthermore, he requested that the provincial State Bank provide additional financial support to companies, enabling them to purchase shrimp materials and stimulate market demand. Proactive efforts to explore new importing markets for local shrimp were also encouraged.

Chairman Hải emphasized the need to connect with countries that have effectively controlled the pandemic, rather than waiting for severely affected countries to recover. This initiative requires not only the involvement of the industry and trade sector but also active participation from companies.

In conclusion, Cà Mau’s shrimp industry is experiencing a positive turnaround with recovering exports and rising prices. With favorable market conditions, the implementation of strategic plans, and support from various stakeholders, the province’s shrimp farmers and companies are poised to capitalize on the opportunities and contribute to the industry’s long-term growth.