(Seafood.vasep.com.vn) Sao Ta Food JSC (stock code FMC - HoSE) has just announced its business results in July 2023 with overall sales of US$ 21.3 million. The above sales are equivalent to the same period last year, but compared to June 2023, sales have increased by 18%. This is also the highest revenue in nearly 1 year of this business.
Sao Ta Food said that in July 2023, finished shrimp production reached 2,338 tons, up 9% over the same period last year; production of finished agricultural products reached 66 tons, down 46% over the same period; finished shrimp consumption reached 1,953 tons, up 19% over the same period last year; Consumption of finished agricultural products reached 187 tons, down 11% over the same period.
Regarding the situation of shrimp farming, a business representative said that in mid-July, the new area had been stocked; and is stocking the second crop in the old area, and is expected to complete the stocking on August 5.
Sao Ta Food is currently one of the largest shrimp processing and exporting enterprises in Vietnam. Since the end of last year, seafood enterprises in general have faced many difficulties in production and export due to high inventories in key export markets, economic difficulties causing a sharp drop in consumption demand.
In addition, the disease status on breeding stock and the high price of animal feed also negatively affect the business activities of seafood processors and exporters.
Sao Ta Food is currently one of the largest shrimp processing and exporting enterprises in Vietnam.
In particular, shrimp is considered as an export seafood product that is most affected by the decline in global demand as shrimp is considered a premium protein food and consumers tend to reduce high-end consumption due to lower income.
However, at the end of July, Dr. Ho Quoc Luc - Chairman of Sao Ta Food's Board of Directors said that business activities began to show positive signs when the revenue decline compared to the high base level of last year is gradually narrowing.
At the same time, the domestic price of commercial shrimp may have bottomed out; In addition, world shrimp prices have also fallen to a level beyond the tolerance of farming households in all major shrimp producing countries. This is considered a supportive factor for shrimp exports to recover in the coming time.
Compiled by Thuy Linh