September 16, 2008

Prices of black tiger shrimps have fallen sharply in the Cuu Long River Delta yet stocks are being left aside as export companies do not have the financial power to purchase the shrimps from farmers.

Currently, large shrimps are sold at VND 80,000 per kg, down VND 10,000-20,000 from last year.

Huynh Ngoc Tua, Director of the Vinh Loi Import-Export Company (Vimex) in Bac Lieu province, said bank loan interest rates have increased dramatically while export prices are stagnant from the global economic slowdown.

Tua said Vimex is trying to avoid losses therefore it is not thinking of making heavy investments by purchasing shrimps in large quantities to store. While many shrimp farmers in Bac Lieu Province want to sell shrimp to Vimex, accepting payments in 1-2 months, the company do not have the money to do so, according to Tua.

Ngo Van Nga, general director of Quoc Viet Company Ltd, said that his company exported 800 tonnes of shrimp worth US$7.4 million to the EU, Australia and Asian countries in August, a lower volume than at the same period last year as shrimp demand in the markets has decreased considerably.