Shrimp price reduces by 30%, many farming households ‘lock’ the ponds

At present, the shrimp prices in Ba Ria – Vung Tau province are experiencing a substantial decline, which has resulted in a pause of farming activities for a significant number of producers and the cessation of exports by enterprises. Shrimp producers in the province have never encountered as many obstacles as they do at present.

In numerous cooperatives in the region, shrimp are being purchased at approximately 122,000 VND/kg for a 35 heads of shrimps per kg, a 30% decrease from the Tet holiday period, according to reporters from Vietnam Agriculture Newspaper. Meanwhile, the cost of production is 120,000 VND per kilogram.

Many cooperatives have postponed harvesting for an additional 10-15 days in anticipation of a price increase due to the low selling price.

Quyet Thang Agricultural Cooperative (Ba Ria City) has been progressively harvesting shrimp recently. The cooperative has sold approximately 10 tons of shrimp; however, they are not overly optimistic in light of the current prices.

According to Mr. Nguyen Kim Chuyen, the director of the cooperative, the hot weather this year has resulted in a reduction in shrimp growth and the development of numerous diseases. Although the cooperative’s shrimp ponds are covered and utilize recirculated water, they are only willing to cultivate at a minimal density of 200-250 shrimp/m2, which leads to a low level of productivity. Concurrently, the input costs for shrimp aquaculture have experienced a substantial increase, resulting in a production cost of nearly 120,000 VND/kg.

“Shrimp prices are subject to daily fluctuations, with a decrease occurring on a daily basis. It was 127,000 VND/kg yesterday, and it has decreased by an additional 5,000 VND today. We are either breaking even or incurring losses at this selling price. In the interim, numerous other items require reinvestment and operation”, Mr. Chuyen expressed that the current shrimp price situation is extremely difficult for producers.

In the same vein, Cho Ben Cooperative in An Ngai commune, Long Dat district (formerly Long Dien district), is also experiencing challenges as prawn prices decline. Cho Ben Cooperative’s director, Mr. Nguyen Van Thuyet, is postponing sales for an additional 10-15 days in anticipation of an increase in prices, although it is harvest time. As shellfish prices decline, the cooperative’s obligation to repay bank loans increases.

In the Long Dat district of Loc An commune, numerous shrimp farming households have been unable to resume farming and have been “locking their ponds” for several months. This is particularly important as the southern region transitions into the monsoon season, which poses a significant risk of disease outbreaks.

In addition to shrimp aquaculture households and cooperatives, seafood export businesses are also experiencing substantial challenges. Shrimp prices have been consistently declining since 2023, while sea freight rates have increased by 40-60%. Baseafood temporarily suspended shrimp exports because Vietnamese shrimp are unable to compete with shrimp from Indonesia and Ecuador.

According to Mr. Truong Dinh Hoe, the General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), the seafood industry is currently encountering obstacles throughout the nation, not just in Ba Ria – Vung Tau. The global economy has not shown any signs of recovery, inflation remains high, and the Russia-Ukraine conflict persists, which has resulted in a decrease in shrimp consumption in numerous countries, particularly since early 2024. For example, Vietnam’s shrimp exports to the United States, South Korea, and Japan have all experienced substantial declines during the initial five months of the year.

“While Vietnam’s shrimp exports to other countries have slightly increased in comparison to the same period, the increase is not substantial. Current circumstance is a result of the substantial supply and demand gap”,  Mr. Hoe analyzed. 

Another factor is that China, a significant consumer market for small-scale shrimp producers, has experienced a significant decrease in demand following Tet, which has resulted in a decrease in production. Concurrently, there is an oversupply of shrimp due to the continued high production of shrimp in the domestic market.

Quyet Thang Agricultural Cooperative is currently in a “dilemma” situation, as it is unable to resume farming and maintain idle ponds. Consequently, the cooperative is in search of alternative sources of consumption. This is a transient solution to resolve the current challenges.

Quyet Thang Cooperative has either introduced products into supermarket systems or accepted the sale of products to other processing units at reduced prices. The cooperative has also reduced the term of the shrimp aquaculture cycle from three months to two months per crop. In order to mitigate the diminished shrimp yield resulting from low-density farming, the number of farming cycles per year has been increased from three to five.

In the first six months of the year, the shrimp aquaculture area in Ba Ria – Vung Tau province covers 2,895 hectares, with a production of approximately 4,100 tons.

The Ba Ria – Vung Tau Department of Agriculture and Rural Development conducts regular water sampling and environmental monitoring in aquaculture areas during the rainy season to provide producers in the province with warnings. Consequently, the agriculture sector can inform shrimp producers in a timely manner when any indicators exceed the acceptable range. Furthermore, the department offers advice on disease prevention and control solutions, as well as aquaculture orientation in the context of the shrimp industry’s numerous challenges.