October 16, 2013

While farmers have refused to trade with processing firms which are speculating on obtaining better shrimp prices, Chinese entrepreneurs, in search of raw material, are being blamed for a daily increase in shrimp prices, which has contributed to the current crisis within the shrimp industry.

"The price was just US$4.7-US$5.6/kg some months ago. However, since the arrival of Chinese merchants, the prices have been pushed up," said Huynh Thi Nam, director of Nam Rum private enterprise.

According to the general director of Minh Phu Group, farmers believe that the prices would continue on a rising trend, thus prefering to hold back on shrimp stocks instead of selling to exporters. Meanwhile, the availability of shrimps is facing declination which also affects the production of raw material.

Shrimp harvest started in mid-September in the coastal districts of Tra Vinh province, including Duyen Hai, Cau Ngang, Tra Cu and Chau Thanh. Although farmers expected a plentiful harvest, limited sales have  left processing companies in need of material.

In the province of Cau Mau, prices for black tiger shrimp (Penaeus monodon) have risen from US$8/kg in 2012 and US$9.4/kg (US$9.4) in August 2013 to the current US$11.30/kg.