October 9, 2014

Prices for black-tiger and white-legged shrimps in Vietnam's Mekong Delta have suffered a significant drop after the US Department of Commerce (DOC) imposed its highest ever anti-dumping duties on warm-water shrimp exports from the country.

In response, the Vietnam Association of Seafood Exporters and Producers (VASEP) has launched an appeal to the US International Trade Commission concerning the DOC's decision.

The recent measures threaten to shut exports to the US as Vietnamese companies have to deal with potentially unfavourable tax rates, and farmers reporting huge profit losses. Minh Phu Seafood Group in the Ca Mau province bears a tax rate of 4.98% while Stapimex handles a higher 9.75%. Thirty other parties are seeing a 6.37% rate.

Said Tran Van Pham, the general director of Stapimex, "The US DOC referred to figures about the shrimp hatchery cost in Bangladesh while considering the case of Vietnam. It was an unreasonable decision."

"Vietnamese farmers have better farming techniques and can control epidemics. Therefore, it is understandable that farming costs are lower than in Bangladesh," he added.

Currently, white-legged shrimp price in Tra Vinh province declined by US$0.94 per kilo within a week. The price of smaller shrimp (100 shrimp per kilo) also dropped from US$5.65 to US$4.71 per kilo.

Such developments have discouraged farmers to continue breeding shrimps.

Local farmers are reported to have harvested 11,000 tonnes of black-tiger shrimps and 23,000 tonnes of white-legged shrimps, according to the Tra Vinh provinces' Department of Agriculture and Rural Development.