Vietnam seafood processors worried on shrimp shortage

Seafood processors in Vietnam are worried on the seemingly supply shortfall of shrimp with plants running only 20 to 30 percent of its capacity.

 

 

Director of Camimex Nguyen Thi Tuyet said the company had to work additional shifts as it is now running at an indifferent level due to the material shortage.

 

Nguyen Viet Cuong, Chairman of Phu Cuong Corporation, complained that he cannot find enough materials to fulfill export orders. Phu Cuong has 15 member companies, using 10,000 workers.

 

It is even difficult to find shrimp materials now in usually high-yielding regions of Soc Trang and Bac Lieu.

 

According to the Ca Mau Department for Agriculture and Rural Development, in February 2009, only 300 out of 1,300 hectares (has) or 23 percent of the water area has become productive shrimp hatcheries while the rest has been idle.

 

In Bac Lieu province, Duyen Hai Company has left 500 has idle in Hiep Thanh commune. Local authorities of Vinh Hau A commune said that there is 1,100 ha reserved for shrimp hatchery, but only 10 households here have resumed farming. In 2009, the province plans to have 11,000 has of shrimp, but only 1,300 has have been farmed with shrimp hatcheries (11.8 percent).

 

According to Nguyen Van Khoi, Deputy Director of the province's Department for Agriculture and Rural Development in Soc Trang province, 40 percent of shrimp farming households in My Xuyen, Long Phu and Vinh Chau districts have not produced due to lack of funds. Farmers have already suffered heavy losses due to low shrimp prices.

 

According to Nguyen Truong Dien, a farmer in Gia Hoa commune in My Xuyen district, most farmers are "tired of hatching shrimp" as total expenses for every kilogramme is VND70,000/kg, while the farmgate prices are only VND50,000.

 

Despite some farmers wanting to go back to shrimp farming, overdue loans have prevented them to do so. In Soc Trang province, more than 80 percent of shrimp hatchery households have to rely on bank loans but losses made overdue debts reach VND500 billion.

 

Nguyen Van La in Hoa Nhan hamlet in Hoa Tu 1 commune, My Xuyen district said apart from losses, farmers still have work for improving the ponds.

 

La said that though the shrimp material prices have been increasing a little, this has not been enough to encourage farmers to resume farming.

 

Le Van Quang, Chairman of the Ca Mau Seafood Processors' and Exporters' Association, said that in order to encourage farmers to resume farming, it is necessary to provide them with preferential loans to help them ease the difficulties.