October 23, 2010

Processing demand jacks up Vietnam's shrimp prices

Shrimp prices have been soaring in the Mekong Delta region of Vietnam, driven by soaring demand for export processing at domestic seafood companies, according to reports.

In Soc Trang province, the prices reached VND170,000-VND173,000 (US$8.73-8.88) a kilogramme of 30 prawn shrimps, and VND210,000-VND220,000 (US$10.78-11.30)/kg of 20 shrimps, up 24% from early this month.

The Vietnam Association of Seafood Exporters and Producers (VASEP) said domestic firms have boosted purchases of raw shrimp for processing and export to meet already signed contracts.

The firms won more contracts from such large markets as the US, EU and Japan, the VASEP said.

Export prices of Vietnamese shrimp have also rebounded since early Oct to nearly US$8/kg of 31-40 head, and US$14/kg of 14-20 head in Japan and between US$7 and US$11.8 per pound.

Vietnamese firms are expected to earn US$1.4 million from shrimp exports in 2010, including US$900 million from prawn.