Shrimp exports to the US face new difficulties

(HQ Online) - Although shrimp exports have improved in the first month of 2024, businesses are facing new difficulties and need to be flexible and proactive in responding.

Processing shrimp for export at Sao Ta Joint Stock Company

Flexible response

As of January 15, 2024, Vietnam's shrimp exports to the US reached more than 15 million USD, an increase of 4% over the same period in 2023. In 2023, shrimp exports to the US reached 682 million USD, down 15% compared to 2022. After a sharp decrease of 47% in the first quarter of 2023, shrimp exports to the US in the second quarter narrowed the decline, and in the third and fourth quarters, shrimp exports to the US recovered and grew by 15% and 23% respectively.

The American Shrimp Processors Association (ASPA), an organization representing the interests of the US wild-caught and shrimp processing industries, recently filed a petition to impose anti-dumping duties on frozen shrimp imported from Ecuador and Indonesia, and countervailing duties on shrimp imported from Ecuador, India, Indonesia and Vietnam.

According to businesses, the outcome is not yet clear, but Vietnam's shrimp exports to the US will be affected in the first half of 2024. In addition, the Red Sea tension in early 2024, which caused shipping rates to the US to increase, is also an obstacle for businesses in 2024.

Regarding this incident, recently the Vietnam Association of Seafood Exporters and Producers (VASEP) sent a document to the Prime Minister, the Ministry of Industry and Trade , and the Ministry of Agriculture and Rural Development requesting active support in the US anti-subsidy investigation against the Vietnamese shrimp industry so that it can overcome the investigation stages in the coming time.

Deputy Prime Minister Le Minh Khai then asked the Ministry of Industry and Trade to coordinate with relevant agencies to consider and decide on the use of legal consultancy services to represent and support the Vietnamese Government in the case of the US anti-subsidy investigation on frozen warm-water shrimp.

Before the US initiates an anti-subsidy investigation into Vietnamese shrimp, businesses need to prepare in all aspects and actively respond to the US's document requirements. In particular, proactively research and understand the US's anti-subsidy investigation regulations and procedures, closely monitor the developments of the case, and coordinate with the Association and the Department of Trade Defense throughout the process of the case.

Recommendations to help businesses

An important key to farmed shrimp is the issue of breeds. In order to ensure the quality of raw materials for production and reduce production costs, VASEP recommends that the Ministry of Agriculture and Rural Development strengthen the control of the quality of farmed shrimp breeds, ensuring that there are no poor quality or disease-infected breeds on the market.

Currently, the cost of shrimp feed only accounts for 30-40% of the cost of farming. Because the price of shrimp feed is high, more than 30,000 VND/kg, an increase of 3,000 - 5,000 VND/kg is considered an increase of 10-15%. In addition to feed costs, electricity costs also increase significantly (accounting for 10% of shrimp farming costs, especially for high-tech farming). However, the current electricity price for shrimp farming is calculated according to the service electricity price and at many different prices, so it affects the cost of raising raw materials. VASEP recommends calculating a single electricity price for shrimp farming facilities.

Seizing the opportunities, but also facing many challenges, the shrimp industry needs the cooperation of the Government, local authorities, and all links in the entire chain. The processing industry must constantly approach consumer and market trends to have new products that meet the needs in the most timely manner.

The farming industry needs to be more fundamental, organize production on a larger scale to have a scientific and reasonable foundation for overall planning of farming areas... With strong competition from rival producing countries, the shrimp industry should now focus more on farming to stabilize quality and price, helping to increase the competitiveness of Vietnamese shrimp.

According to VASEP, in 2023, fresh and frozen shrimp products exported to the US in 2023 tend to decrease slightly compared to processed shrimp products. Notably, black tiger shrimp exports to the US in 2023 recorded positive growth, mainly thanks to fresh and frozen black tiger shrimp products increasing by 10%, reaching 59 million USD.

Source: https://haiquanonline.com.vn/xuat-khau-tom-di-my-doi-mat-voi-kho-khan-moi-183091.html