Vietnam runs out of shrimp amid world price peaks

 

 

Shrimp prices have spiked since the Gulf of Mexico oil spill, but Mekong Delta production is at a cyclical low.

 

CEO Le Van Quang of Minh Phu Seafood Company said there have been a surge in demand by US shrimp importers since the oil spill disaster cratered Gulf of Mexico production. Prices offered for black tiger shrimp have reached US$13 per kilo, an increase of 30% over 2009 levels and the highest price seen in ten years.

 

Hot weather and decreased production in competing countries are also pushing prices up. An epidemic has killed 80% of Indonesia's farmed shrimp and 20% in Thailand and Malaysia. Production is down in India and Bangladesh too.

 

Seafood companies said that they are missing fat profits as demand has outstripped supply. Lam Ngoc Khuan at Phuong Nam Seafood Processing Company (Soc Trang) said that foreign partners are eager to place orders, but the company dares not sign new contracts.

 

Khuan said his company is scouring Ca Mau and Bac Lieu province for more shrimp.  It has only been able to buy 40 tonnes per day, though the factory can process and pack 120 tonnes per day.

 

Other Mekong Delta companies also include Fimex Vietnam, Stapimex, Kim Anh, Thai Tan and Ut Xi; all in the same note saying that there is only enough shrimp for them to run at 20-30% of the capacity.

 

Ta Minh Phu, Deputy Director of the Bac Lieu province's Department for Agriculture and Rural Development, said that hectarage devoted to shrimp aquaculture has been reduced in the last few years because prices were depressed below the cost of production for many farmers. Now they do not have capital to resume farming, and banks are reluctant to provide loans.

 

However, Mekong Delta production is expected to rebound from September 2010.