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Ca Mau: Black tiger shrimp farmers confront with a new bottleneck
September 03, 2013, 04:19 PM
(vasep.com.vn) The US Department of Commerce (DOC) has recently decided to levy anti-subsidy duties (CVD) on frozen shrimp imported from Vietnam. As a result, farmers in Ca Mau province - main shrimp farming region of Vietnam – continued to face new challenge.

Ca Mau has 29 seafood exporters who own 34 fish processing facilities and accounts for more than 15 percent of the country’s total seafood export turnover. Shrimp exports of the province occupied over 40 percent of Vietnam’s total shrimp export turnover.

In the first 7 months of 2013, seafood exports of the province reached over US$480 million, down 3 percent on par with the same period of 2012. Most of local seafood processing facilities are operating under their full capacity while they must import raw material due to raw material undersupply.

According to Ca Mau Association of Seafood Exporters and Producers (CASEP), DOC’s decision on the imposition of anti-subsidy duties on Vietnam shrimp exporters is infact a trade barrier imposed by the U.S. on Vietnam shrimp. Local shrimp processors and exporters have never received any government’s subsidy. DOC’s decision directly affected Vietnam black tiger shrimp farmers and many others working in related fields, including workers and enterprises.

Being objected to CVD imposed by DOC, local enterprises are forced to slash price of raw shrimp paid for farmers, especially ones who farmed shrimp on the industrial or semi- industrial scale. CVD will hurt farmers the most if it takes into effect.

According to CASEP, industrial shrimp farming area in the province is 5,000 hectares. Local shrimp farming is put under strain due to bad weather and diseases.

In the coming time, the U.S. International Trade Commission (ITC) will announce its determination. Shrimp farmers in Ca Mau in particular and Vietnam in general are looking forwards to receiving ITC’s impartial and sensible determination.

Kim Thu
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Specialist on Shrimp market
Ms Kim Thu
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