Ca Mau Newspaper cites a report from the Ca Mau Department of Agriculture and Rural Development, stating that shrimp prices have been volatile and consistently declining since the beginning of the year, causing significant challenges for shrimp farmers.
The situation has further deteriorated in recent days, with shrimp prices plunging to an all-time low. Shrimp farmers are facing innumerable difficulties, forcing many households to reduce their farming activities or even suspend their operations entirely.
Mr. Nguyen Hoang Thong, a farmer from Dam Doi District in Ca Mau, shared that he has been farming shrimp for nine years, but he has never experienced such a drastic drop in prices as this year.
Rising raw material prices coupled with decreasing shrimp prices are creating hardships for farmers.
Mr. Thong lamented to Labor Newspaper : “I have two super-intensive shrimp ponds, covering an area of about 6,000 square meters. In the recent harvest, my shrimp yield was 43 shrimp per kilogram, but the selling price was only 98,000 VND per kilogram, resulting in a revenue of 350 million VND. In contrast, the expenses for farming these two ponds for 65 days amounted to approximately 330 million VND. If we include labor costs, I basically broke even.”
The continuous increase in feed prices has further exacerbated the challenges faced by farmers. According to their calculations, feed accounts for about 1 to 1.3 tons per ton of shrimp. With the average feed price at 45,000 VND per kilogram, farmers are facing an additional expense of around 50 million VND per ton of shrimp.
Shrimp Exports Face Challenges
Mr. Huynh Chi Ai, another farmer who uses lined ponds for super-intensive shrimp farming, shared that he barely breaks even.
Mr. Ai expressed his disappointment: “Since the beginning of the year, shrimp prices have been extremely low. Although my shrimp yield is good, the continuous drop in prices means I’m barely making any profit. On top of that, shrimp farming hasn’t been favorable lately due to water source pollution, which requires additional expenses for treatment.”
Mr. Le Tien Luat, a farmer from Dat Do District in Ba Ria-Vung Tau province, shared with Nhan Dan Newspaper that his household has 17 shrimp ponds spanning nearly six hectares. The recent sharp decline in shrimp prices, coupled with unfavorable weather conditions that have slowed shrimp growth, increased costs, and led to significant losses, has prompted him to decide to suspend farming activities and wait for prices to stabilize before resuming production.
In the current context, farmers are advised to choose suitable farming models.
According to shrimp farmers in Dat Do District, the selling price of marketable shrimp is currently around 120,000 VND per kilogram, while the cost incurred by farmers is almost the same, at around 120,000 VND per kilogram. With such tight margins, farmers need exceptional skill to turn a profit, and any further drop in prices would result in significant losses.
Mr. Phan Van Tam, Administrative and Human Resources Director of Minh Phu Ca Mau Seafood Corporation, noted that shrimp prices are at their lowest point ever, while export volume has been relatively good this year. The company is currently purchasing around 150 tons of shrimp per day, and the supply is sufficient to meet the demand.
Mr. Tam added that the company cannot increase the purchasing price because it would lose its competitiveness against India and Ecuador, the two countries currently offering the lowest shrimp prices in the market.
It is predicted that shrimp prices will likely increase towards the end of the year due to year-end demand in major markets and an expected rise in domestic demand during the last few months.
Authorities are advising farmers to opt for cost-effective farming models that reduce expenses and improve efficiency, such as improved extensive shrimp farming with 2-3 stages, integrated shrimp-rice farming, and shrimp-forest farming.
As of the end of July, shrimp exports reached nearly two billion USD, a 7% increase compared to the same period in 2023. Specifically, white-legged shrimp exports amounted to 1.45 billion USD, a 4% increase, while black tiger shrimp exports reached 246 million USD, a 10% decrease compared to the same period last year.
This year, shrimp exports continue to face numerous challenges and obstacles due to the Russia-Ukraine conflict, global economic crises, high inflation in major export markets, technical barriers for imported shrimp, price competition with India and Ecuador, rising sea freight rates, complex diseases in shrimp farming, high production costs, and the risk of raw material shortages.
Truong Dinh Hoe, Secretary-General of the Vietnam Association of Seafood Exporters and Producers (VASEP), stated that despite the positive growth in the first months of 2024, this does not accurately reflect the difficulties faced in key markets such as the United States, the European Union, and Japan.
