Shortage of raw shrimp

Mr. Nguyen Tuan Anh, General Director of Utxi Aquatic products Processing Corporation said, the company’s plants are currently operating at 50 percent of its full capacity due to lack of raw material. Moreover, heavy shrimp mortality also slows down its business activities. The company received many orders from their partners but they couldn’t sign any contracts due to unstable raw material supply.  

In the past 10 years, shrimp processors in Mekong Delta haven’t coped with difficulties in purchasing raw shrimp as now.  Raw shrimp price reached the highest. Local companies are very hard in keeping their operating smoothly and ensuring stable income for their workers. Shrimp export may fail to achieve the target of this year, Mr. Nguyen Van Kich, General Director of Cafatex Corp (Hau Giang province) said.

To ensure raw shrimp resources, many farmers and companies begin farming again but they choose to stock whiteleg shrimp instead of black tiger shrimp. Time for farming whiteleg shrimp is two month shorter than farming black tiger shrimp. Many domestic processors are planning to import raw shrimp for processing. However, high tax, complicated import procedures, long tax refund time are preventing them from implementing their plan.

According to Mr. Truong Dinh Hoe, General Secretary of Vietnam Association of Seafood Exporters and Producers, the lack of raw material will affect negatively shrimp export target this year. Although shrimp export volume decreases, shrimp export value may still reach US$2 billion as targeted because shrimp price is now high.