Prices for the smaller sizes are also strong enough to make this profitable, Chow told Undercurrent News.
A farmer today can fetch RMB 9.60 per kilo for 300/500 sizes, which is the same price they would get for 500/800 in May last year.
“The farmers can harvest the fish quickly at a very good price,” said Chow. “They worry that the price might drop if they keep fish to 500 - 800 grams, which takes one and a half to two months.” “Also fish can die if temperatures get high,” he said.
Liang Chaorong, managing assistant at the Chinese processor Evergreen (Zhanjiang Evegreen Aquatic Product), told a similar story. “The raw material is a problem, because there’s no supply of big sizes,” Chaorong told Undercurrentduring the Seafood Expo Global trade show in Brussels last week.
Uncertainty over the weather means farmers are preferring to harvest when the fish is at 300-500 grams, instead of the 700-900g preferred by processors, said Chaorong.
He said ex-farm tilapia prices in Guangdong are at around RMB 11.90 per kilo for 500/800, RMB 10.40 for 300/500 and RMB 12 for above 800 grams.
Chow quoted lower prices, of RMB 11.60/kg for 500/800, and RMB 9.60 for 300/500. These are still comfortably above levels of May last year (RMB 9.60 and RMB 7.60) and November 2013 (RMB 9.80 and RMB 7.80).
Both Chaorong and Jason Carter, who co-founded the tilapia supplier Elite Seafood, said supply was currently short.
“Supply is still very short and we don’t expect this to change until August,” Carter told Undercurrent.
“Demand seems to be quite strong, with packers still buying raw material and I haven’t heard of anyone stopping production due to high raw material pricing,” said Carter, who’s company Elite is expanding its farming areas. “We will see some price relief but I don’t think that this will be until August when we see more supply.”
Higher proportion of 300/500
For the market, the result for now is a short supply of 500/800 and 800+ sizes.
The 3/5oz packs preferred by US foodservice buyers and some retailers are now made with more 300/500 and fewer 500/800, said Chow.
Normally, a 3/5oz pack would consist of 60% 500/800, and maybe 20% 800/1,200 and 20% 300/500. But today, Chow said the breakdown is likely to be closer to 40-55% of 300/500, just 10% of 800/1,200 and the 500/800 making up the rest. “It does not say that there is no 500/800, just that there is more 300/500.”
300/500 sizes are usually used for filleting 2-3oz, whilst 500/800 are used to process 3-5oz fillets.
As long as the bags are bigger than 500g, it is easy to do 3/5oz, said Chow.
(seafood.vasep.com.vn) The US remains Vietnam’s largest single market for shrimp imports, accounting for 20% of Vietnam's total shrimp exports globally. As of October 15th, 2024, Vietnamese shrimp exports to the US reached nearly 600 million dollas, marking a 10% increase compared to the same period in 2023.
(seafood.vasep.com.vn) According to Vietnam Customs, pangasius exports to Canada reached over 1 million USD in the first half of October 2024, a 33% decrease compared to the same period last year. However, by October 15, 2024, total pangasius exports to Canada had reached 32 million USD, reflecting a 10% increase compared to the same period in 2023.
(seafood.vasep.com.vn) Cà Mau is accelerating its digital transformation, developing green industries, and promoting high-tech processing of agricultural and aquatic products, with a focus on sustainable economic growth and environmental protection.
(seafood.vasep.com.vn) The Dong Thap Pangasius Festival 2024, themed 'Dong Thap Pangasius: Green Journey - Green Value', will take place on November 16-17 in Hong Ngu City.
The positive business momentum in the domestic seafood sector could last into the first half of 2025, according to experts.
(seafood.vasep.com.vn) In the first three quarters of 2024, brackish water shrimp production exceeded 1.1 million tons, with export revenue reaching $2.8 billion. The seafood industry has set a target of $4 billion for shrimp exports for the entire year.
While the price of 1 kg of shrimp hovers around 20 USD, the value of 1 kg of chitosan—extracted from shrimp—can soar to 500 USD. This highlights a significant challenge within the seafood processing industry.
(seafood.vasep.com.vn) By October, Vietnam's shrimp exports had generated nearly $3 billion, reflecting an increase of over 10% compared to the same period last year. Shrimp remains the leading commodity contributing to the export turnover of the entire seafood industry.
(seafood.vasep.com.vn) Sao Ta Foods Joint Stock Company (FIMEX VN - HoSE: FMC) concluded Q3/2024 with significant growth in revenue. Specifically, Sao Ta Food recorded revenue of VND 2,845 billion, a 58.6% increase year-on-year. The company's profit after tax reached VND 95 billion, up 6.2%.
VASEP's Seafood Export Report for the third quarter of 2024 provides a comprehensive overview of Vietnam's seafood export performance in the first nine months, with impressive results reaching $7.2 billion—an increase of 9% over the same period last year. In the third quarter alone, seafood exports grew by 15%, totaling $2.8 billion. This growth is attributed to a recovery in demand and prices in key markets such as the U.S. and China, as well as the competitive advantage of value-added products in markets like Japan and Australia.
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