July 29, 2013
Vietnam Shrimp Weekly: White leg shrimp prices set new record amid optimism on Japan market (week ended Jul 9, 2013)
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Price summary
For the past two weeks, the price of giant tiger prawn was stable in the Mekong Delta. The price of 20 pcs/kg, 30 pcs/kg and 40 pcs/kg giant tiger prawn was kept the same as the week earlier at VND230,000/kg (US$10.83/kg), VND180,000/kg (US$8.47/kg) and VND155.000/kg (US$7.30/kg) respectively.
In Da Nang (located in the Central region), prices of all category of giant tiger prawn increased VND 5,000- VND20, 000 (US$0.236 - US$0.943) per kilogramme after a gloomy week last week. In contrast, the price of 40pcs/kg giant tiger prawn decreased VND 3,000 (US$0.1415) per kilogramme, to VND145, 000 - VND152, 000 (US$ 6.83 - US$7.16) in Khanh Hoa.
|
Price of giant tiger prawn at central regions - week 3-9/07/2013 | ||||||
|
Region |
Ca Mau |
|
Khanh Hoa | |||
|
Category ( pcs/ kg) |
5-Jul |
11-Jul |
5-Jul |
11-Jul |
5-Jul |
11-Jul |
|
8 |
- |
- |
420-430 |
440 - 450 |
- |
- |
|
15 |
- |
- |
330-340 |
340 - 350 |
- |
- |
|
20 |
230 |
230 |
- |
- |
- |
- |
|
30 |
180 |
180 |
155-165 |
170 - 180 |
- |
- |
|
40 |
155 |
155 |
120-130 |
125 - 130 |
148-155 |
145 -152 |
|
Source: Vasep (Viet Nam Association of Seafood Exporter & Producer) and Casep | ||||||
Prices of white leg shrimp in Ca Mau market (Mekong Delta region) increased VND2,000 (US$0.0943) per kilogramme for all categories after decreasing slightly last week. At the moment, prices for one kilogramme of 100pcs, 90pcs, 80pcs, 70pcs and 60pcs are VND89,000 (US$4.20), VND101,000 (US$4.76), VND108,000 (US$5.09), VND116,000 (US$5.47), VND122,000 (US$5.75) respectively.
However, CASEP forecasts that the price will drop off again as the market consumption has slowed down currently.
In the Central region, prices of 60pcs/kg white leg shrimp maintain stable but price of 100 pcs/kg was increased VND2,000 (US$0.0943), up to VND 97,000- VND 102,000 ( US$4.57- US$9.61)
|
Price of white leg shrimp at central region - week 03-09/07/2013 | ||||||
|
Region |
Ca Mau |
|
Khanh Hoa | |||
|
Category (pcs/ kg) |
Jul 05 |
Jul 11 |
Jul 05 |
Jul 11 |
Jul 05 |
Jul 11 |
|
60 |
120 |
122 |
- |
- |
110-120 |
110-120 |
|
100 |
- |
- |
95-100 |
97-102 |
- |
- |
|
Source: Vasep (Viet Nam Association of Seafood Exporter & Producer) and Casep | ||||||
Market Analysis
Generally, prices of giant tiger prawn of Ca Mau remains stable this week. Trading was slow due to low supply from farmers as a result of farmers switching from giant tiger prawn to tiger white shrimp last month to avoid epidemic disease and poor quality prawn due to early harvest.
However, prawn prices in the central region of Da Nang increased due to support from the regional government and good training. Thanks to such support, the quality and production of shrimp has improved and is better able to satisfy market requirements.
Prices of white leg shrimp has been increasing after Japan recently announced the increase in trifluralin limitation from 0.001ppm to 0.5 ppm. This announcement will benefit Vietnamese shrimp exporters to Japan.
According to some experts, Vietnam producers need to consider aquaculture quality improvement as many aquaculture entrepreneurs have been sued by consumers recently due to differing quality standards between Vietnam and its trading partners. According to Tran Thanh Hai, vice president of the Import & Export Department of the Ministry of Industry and Trade of Vietnam (MOIT), Vietnam's standard is usually lower than that of its partners. Some partners have demanded stringent standards which put Vietnamese producers in a difficult situation.
Therefore, MOIT will engage in negotiation to remove or allay some unnecessary barriers. The MOIT also realised maintaining production and exports is an important mission. Hence, Vietnam shrimp export businesses have shifted to other markets, including many Asian countries.
According to the Viet Nam Association of Seafood Exporter & Producer (VASEP), against the 'gloomy markets' of EU, USA, Korea and Japan, businesses have to orientate towards markets with strong shrimp demand, like China. With Vietnam's geographical advantage, in the first quarter of 2013, China has become the third largest market in shrimp imports instead of EU, followed by USA and Japan with monthly growth rate of 7.3% - 97%. Up to May 2013, Vietnam shrimp exports to China (including Hong Kong) reached US$ 108.5 million, an increase of 17.9% on-year,, thus maintaining its third position among Vietnam shrimp importers.
Many market reports show that China is not only the leading seafood exporter in the world, but is becoming a potential seafood market. It is forecast that for the next 10 years, the value of China's seafood imports could reach US$20 billion.
According to a report by Globefish, demand for shrimp imports from Southeast Asian countries is also increasing in order to meet domestic demand and export processing. Vietnamese shrimp business noted that Singapore and Malaysia will be attractive markets this year.
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