Shortage and high cost of raw materials has hit the seafood sector in Vietnam. At present, seafood processing plants in Ca Mau are operating at only 50% of their full capacity. Fourteen out of 26 of these plants have had to reduce or suspend production. In An Giang, 23 tra fish (pangasius) processing plants have had to reduce their production capacity by 40-50% due to the shortage of raw materials. About 60% of tra breeding farms are empty as local farmers suffered heavy losses and did not have the capacity to reinvest.
Vietnam is expected to earn US$4.5 billion from seafood exports in 2010, up US$200 million over last year. However, the domestic seafood sector is suffering severe shortage of raw materials, including key items such as shrimp and pangasius catfish. The growing demand for raw materials has forced farmers to harvest early while some have moved to farming other species. The Ministry of Agriculture and Rural Development predicts that to boost exports Vietnam will have to increase its seafood raw material imports by 8-10% a year. (Infofish)