Against the pressure of global spending tightening, consumer preferences are shifting strongly toward small-sized shrimp products. This forces the Vietnamese seafood industry to urgently alter processes to adapt

The paradox across many shrimp ponds currently is that small-sized shrimp are sold at high prices and sold faster compared to large-sized shrimp. Many enterprises are struggling to find outlets for large shrimp while small shrimp are not enough in stock to supply factories.

Small-sized shrimp favored, selling prices high on par with large shrimp

Mr. Nguyen Hoai Nam - General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), stated that shrimp continues to be the largest commodity group among Vietnam's exported seafood items, reaching 1.9 billion USD in the first half of this year, accounting for about 40.4% of the total seafood turnover.

Despite possessing good growth, the market is experiencing a mismatch between domestic production and import demand at a number of main markets for Vietnamese shrimp. Accordingly, growers in many localities possess a tendency to switch to raising large-sized shrimp aiming to optimize value on each unit of output volume.

However, the demand at a number of large markets instead leans toward small-sized shrimp, which is more suitable for the low-price consumption segment and the cost-cutting trend of consumers. According to Mr. Nguyen Hoai Nam, this can affect the order signing speed, product specification structures, and raw material purchasing plans of enterprises.

Sharing the same viewpoint, Mr. Le Van Quang - General Director of Minh Phu Seafood Corporation, also argued that, during the phase when the world economy still encounters difficulties, consumers tighten spending so they possess a tendency to seek to buy foods that carry cheaper prices. Shrimp also sits among those when customers switch to choosing to buy products that possess smaller sizes by 1-2 sizes to cut costs.

Specifically, customers primarily buy shrimp sized from 60-120 individuals/kg, much smaller compared to the size of 40-60 individuals/kg, or even larger previously such as 25-30 individuals/kg. Meanwhile, shrimp growers in many regions in the Mekong Delta usually raise and harvest the type from 20-60 individuals/kg to sell at higher prices, optimizing profits.

The mismatch between market demand and production causes the source of small-sized shrimp serving the processing of added-value (AV) goods to face a serious shortage. A number of enterprises are forced to import shrimp from India and Ecuador to serve export processing. Concurrently, guiding growers to alter cultivation specifications according to the actual demands of customers.

Accordingly, at many shrimp farming tracts, this enterprise executes partial harvesting multiple times each crop season aiming to satisfy market demands and preferences. However, this is still quite novel to farmers.

Mr. Ngo Minh Tuan, Director of Tuan Hien Aquaculture Company Limited (Tan Phu Dong commune, Dong Thap province) also shared that small-sized shrimp currently is drawing high demand, being easier to consume compared to large-sized shrimp.

“Processing factories purchase shrimp sized at 70 individuals/kg and the 40-50 individuals/kg type at equal prices. Small-sized shrimp also consumes faster, being easier to sell while large-sized shrimp is difficult to find outlets,” Mr. Ngo Minh Tuan informed.

Also according to Mr. Ngo Minh Tuan, previously, only farmers and enterprises who were “firm in expertise” could raise shrimp to reach the large size of 25 individuals/kg. The raising time for this type of shrimp stretches double compared to the size of only about 70 individuals/kg, so the production cost is also nearly double.

“Currently, if shrimp sized at 70 individuals/kg is sold out at a price of around 90,000 VND/kg, growers can also possess a profit of about 20,000 VND; however, if keeping on raising to the size of 25 individuals/kg, growers almost possess no profit left, because the purchasing price for large shrimp types has dropped very deeply,” Mr. Ngo Minh Tuan informed.

Farmers, enterprises alter raising processes

Although the market possesses a tendency to favor small-sized shrimp, many shrimp farmers are still accustomed to raising processes heading toward achieving larger sizes upon harvest.

Mr. Vo Hong Ngoan, residing in the former Bac Lieu province (now Ca Mau province), shared that raising small-sized shrimp can satisfy market demand at the present moment, helping farmers sell shrimp more easily.

However, for tens of years now, raising shrimp to achieve large sizes has been considered a successful crop season. According to Mr. Vo Hong Ngoan, one ton of large-sized shrimp previously yielded a profit nearly triple compared to one ton of small shrimp. Therefore, altering raising models demands time and specific guidance from the professional circle.

“If stocking with dense densities, the volume of breeding stocks, aquaculture feed, and other drug types is also more; farmers will demand larger capital compared to sparse raising, extensive raising. Not to mention, when stocking densely, the resistance strength of shrimp is weaker, being more easily infected with diseases…,” Mr. Vo Hong Ngoan noted.

Also according to Mr. Vo Hong Ngoan, despite many consecutive years being dubbed the “Shrimp King” of the Mekong Delta region, having succeeded with multiple highly efficient shrimp raising models, up to now, he has also stopped this work.

According to Mr. Vo Hong Ngoan, precarious outlets while the initial investment capital is large, and diseases threaten continuously make shrimp raising no longer attractive to farmers. Mr. Vo Hong Ngoan has also leased out his entire farm, which once welcomed many domestic and international delegations to visit and study his shrimp raising model.

In reality, the shrimp industry is experiencing a bleak phase due to purchasing demand at export processing factories sitting at low levels. Meanwhile, many raising regions in the Mekong Delta enter the main harvest season; the abundant shrimp volume leads to supply exceeding demand.

Commercial shrimp purchasing prices in the Mekong Delta have dropped sharply over the past many months, with some types decreasing to record levels. Mentionable examples encompass the shrimp type sized at 25 individuals/kg currently only fluctuating around the level of 125,000-130,000 VND, dropping sharply compared to the level of nearly 250,000 VND/kg previously. Meanwhile, shrimp of the small size around 70 individuals/kg is purchased at prices of over 90,000-95,000 VND/kg.

Confronting this situation, Mr. Ngo Minh Tuan stated that, although this enterprise kept the target of raising shrimp to achieve the size of 25 individuals/kg upon harvest for many past years, with current market preferences, Tuan Hien Company is possessing an orientation to switch to models with denser stocking densities and shorter raising times. This aims to satisfy the weight demand at the level of around 70 individuals/kg of consumers.

“Previously, the enterprise only harvested small-sized shrimp when confronting disease risks or when raising techniques had not achieved expectations, causing shrimp to grow slowly. Yet currently, market demand alters so the enterprise will also alter in the raising process to achieve higher efficiency,” Mr. Ngo Minh Tuan shared.

Source: Bao dien tu Dan tri