Shrimp products being processed. Sugpo prawn accounts for over 40 per cent of total export turnover. (Photo: Seafoodfromvietnam)

Seafood exports looking up

VIET NAM
Friday, May 14, 2010, 23:40 (GMT + 9)

Vietnam made USD 1.3 billion from seafood exports in the first four months of 2010. This comprises a 20.3 per cent-increase versus the same period last year, according to the Ministry of Industry and Trade.

The rise is attributed to higher shrimp prices.

Last year, sugpo prawn exports grew by 3 per cent while other seafood products skid by 6 per cent. Sugpo prawn makes up over 40 per cent of the sector's total export turnover and thus kept the industry from suffering from the recession.

Shrimp prices and productivity will decide the sector's export turnover in 2010 and the market is seeing promising signals, said Vietnam Association of Seafood Exporters and Processor (VASEP) General Secretary Truong Dinh Hoe, Vietnam Net reports.

Vietnam sells most of its shrimp -- 33 per cent -- to Japan and the US, with South Korea in second place.

But now the market is struggling with a shortage of raw materials, the ministry told.

Current domestic shrimp productivity is meeting 30-50 per cent of demand, with prices shooting up 30 to 40 per cent compared to last year.

For the first time in years, shrimp farming is falling behind its export potential, experts noted. The farming area fell steeply from 660,000 to 548,000 ha last year.

Meanwhile, export turnover has doubled. In Q1 2010, export turnover soared while productivity rose by just 6.1 per cent.

Due to raw material shortages, some processing companies complained of only being able to purchase 5-10 tonnes of shrimp a day while their demand is around 60 tonnes.

The dearth is being partly caused by a lack of large-scale investment, high costs and regular epidemics.

To improve exports of other seafood products, several businesses have been targeting new markets: Brazil, Canada, the Philippines, Uruguay, Algeria and Ukraine are some.

Some companies have implemented a self-contained model of farming and processing that guarantees hygienic products and environmental protection.

In the interim, the Ministry of Agriculture and Rural Development (MARD) is preparing for tra (pangasius) exports to Russia in June.

Tra exports were interrupted at the end of Q1.

MARD's Deputy Minister Le Luong Phuong said tra exports would prioritise prestigious importers, and that this classification would help the Vietnamese control their supply and quality of exports to Russia.

“[…] Export would be resumed in the time to come after the Steering Committee on exporting tra fish to Russia had working sessions with the Russian agency in charge of inspecting the quality of import products which shows positive result,” Phuong said, Thoi bao Kinh te Saigon reports.

But this too will be challenging, as Russia is working to tighten and control the quality of imports to protect local seafood production. Still, Phuong believes the Government of Russia will not stop importing fish, which happened in 2008.

Russia is also importing increasing amounts of shrimp, dried seafood and surimi from Vietnam.

Related article:

- Seafood processors face lack of raw materials

By Natalia Real
[email protected]
www.seafood.media

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