April 7, 2020
Vietnam's US, EU shrimp orders delayed, cancelled
Vietnam's Minh Phu Seafood Corp. has seen between 30% and 50% of shrimp orders from the US and EU either suspended or cancelled due to the COVID-19 pandemic, according to the firm's chairman, Le Van Quang.
A similar situation was seen by mid-March in orders from the Middle East, Asia, and South America, he said.
Despite such difficulties, domestic firms have still purchased shrimp from tens of thousands of farmers in the Mekong Delta in an effort to shore up employment, Quang added.
Apart from market obstacles, businesses also face burdens of extra container storage charges, as well as expenses for equipment like face masks, thermometers, and sanitiser.
Truong Dinh Hoe, secretary general of the Vietnam Association of Seafood Exporters and Producers, said concerns over falling shrimp and pangasius prices prompted farmers to conduct an early harvest.
If farmers cut production now, it will lead to a shortage of raw materials at the end of this year, he warned.