Why has seafood export to China not yet made a breakthrough?
Statistics from China Customs show that the country's seafood import demand is recovering strongly after
China's shrimp import demand gradually recovered, with the volume nearly doubling over the same period last year. Accordingly, Vietnam's shrimp exports to the Chinese market in May 2023 reached US$78 million, the highest turnover since the beginning of this year.
According to China Customs data, the country's shrimp imports in May increased sharply by 77% over the same period last year to 100,310 tons; import value increased by 55% to 579 million USD. Generally, in the past 5 months, shrimp imports increased by 48% to 415,305 tons; turnover also increased by 28% to 2.3 billion USD.
However, the price of imported shrimp remained low in the context of the global market decline. Accordingly, the price of imported shrimp in May averaged $5.77/kg, slightly up from the lowest level of the same year in April at $5.33/kg.
It is known that Ecuador was a major shrimp supplier to China in May, at 72,520 tons, double that of the same period. Turnover also increased by 70% to 392 million USD. However, the average unit price for 1 kg of shrimp decreased by 16% over the same period to 5.41 USD/kg.
India ranked second with 10,872 tons, up 30% year-on-year. However, the turnover only increased by 7% to 62 million USD because the selling price decreased by 23% to 5.73 USD/kg.
However, the Association of Seafood Exporters and Producers (VASEP) said that according to the data collected, it is estimated that the amount of hanging, non-farm ponds in India is between 30% and 50%; In Ecuador, EI Nino is causing damage to about 30% of the farming area, the amount of shrimp will decrease.
According to VASEP, shrimp farming in China is very difficult due to high input costs and falling raw shrimp prices, so China will still increase shrimp imports abroad. China's shrimp import demand gradually recovered, with the volume nearly doubling over the same period last year. However, the price of imported shrimp remained low in the context of the global market decline.
Facing developments in China's shrimp production and import, Vietnamese shrimp have opportunities to recover exports to this world's most populous market. VASEP's report shows that in May, China ranked first in Vietnam's shrimp consumption market, accounting for 23%. The US ranked second, accounting for 21%.
Shrimp exports to China in May reached 78 million USD, the highest turnover since the beginning of this year. This number still recorded negative growth, but the decrease was less than in previous months (March recorded a decrease of 40%, April decreased by 22%, and May decreased 11%).
Regarding the stocking situation of shrimp in the country in the first 6 months of 2023, the quantity of white leg shrimp stocked in the country decreased slightly by 1.8%, and the stocking volume of black tiger shrimp increased by 12.5% over the same period last year. Particularly in March of this year, the amount of white leg shrimp stocking decreased by 14%, and the amount of stocking black tiger shrimp increased by 10%.
In the key provinces (Kien Giang, Ben Tre, Tra Vinh, Bac Lieu, Soc Trang, Ca Mau) in March 2023, recorded an increase in black tiger shrimp stocking in 5 provinces except for Ca Mau. The amount of white leg shrimp stocked in Kien Giang increased slightly; in Ben Tre, Bac Lieu and Ca Mau decreased slightly; in Tra Vinh, Soc Trang decreased more.
"Therefore, the forecast of Vietnam's raw shrimp supply in July and the last months of the year may decrease, but not too seriously," VASEP said.
Regarding the production and export situation of the market in the coming time, VASEP said that although it is still a difficult time, many optimistic forecasts have been made about the prospect of Vietnam's shrimp exports in the last months going to markets such as China, America. Although it has not been able to recover strongly compared to last year, it will at least be better than at the beginning of this year.
