June 3, 2011

Vietnam's shrimp processing plants hit by falling stocks

Vietnam's tiger shrimp processors are working at half capacity due to a shortage of raw crustaceans and consequent high prices.

General Director, Nguyen Tuan Anh of Ut Xi Seafood Processing JSC, said processing factories were operating at half capacity because giant tiger shrimp are dying off from disease in the southern provinces.

"We have orders for Christmas and New Year but the company can't get enough shrimps so it doesn't dare to sign contracts," Anh said.

General Director Nguyen Van Kich of the Hau Giang province-based Cafatex Corp., said that over the past ten years shrimp export processors have never before faced such a serious lack of raw material.

There had been difficulties but they had always managed to compete to get what they required for production, Kich said.

General Secretary Truong Dinh Hoe of the Vietnam Association Seafood Exporters and Processors said the death of shrimps from disease in recent months had made it difficult to fulfill export contracts signed with partners in Japan and the US.

The serious lack of raw shrimps would continue till August, Hoe said.

Soc Trang Seafood JSC General Director, Tran Van Pham, said many farmers had grown whiteleg shrimps instead of giant tiger shrimps in the context that Vietnamese tiger shrimps only had to compete with Indian tiger shrimps while Vietnamese whiteleg shrimps had to compete with the same products from many countries.

Despite difficulties, VASEP expects Vietnam's shrimp exports to hit US$2 billion this year thanks to high prices fetched by this kind of seafood.