Siam Canadian sees material shrimp prices fall in Vietnam: Seafood Source News
Toan Dao: Seafood Source News
Bangkok, Thailand-based seafood trader Siam Canadian Group has seen a year-on-year decline in material vannamei prices in Vietnam, the company said in a market update released on 4 June.
Most local farmers aim to farm shrimp with a size of 30 pieces per kilogram (head on, shell on, cooked and peeled). The price of this size as of the market update was at VND 125,000 (USD 5.40, EUR 4.80) per kilogram, down between 24.2 percent to 26.5 percent from between VND 165,000 and VND 170,000 (USD 7.00 and USD 7.30, EUR 6.30 and EUR 6.50) per kilogram last year.
The current rate of 60-piece size (about 31/40 headless shell on or HLSO and peeled tail on or PTO) was VND 115,000 (USD 4.90, EUR 4.40) per kilogram, 17.9 percent lower year-on-year.
Siam Canadian said as demand for sizes 31/40 to 71/90 (HLSO/PTO) and smaller are on the rise, local farmers are preferring heavier seeding density.
“Although that is not an ideal size for farmers to harvest in terms of yields. However, to achieve these sizes with competitive costing, Vietnam will start to do heavier stocking density levels & partial harvests again. This will help seafood processors, suppliers, and exporters grow their market shares,” the company said.
Minh Phu Chairman and CEO Le Van Quang told SeafoodSource on Tuesday, 9 June, that the prices provided by Siam Canadian are correct. But he said these are the rates from last week. For this week, the prices were higher as demand is on the rise.
Quang also added that normally processing factories will give an extra bonus per kilogram to local agents who buy shrimp directly from farmers and sell to the companies. The bonuses vary among shrimp processors and they are not included in the announced prices.
Siam Canadian said this year farmers in Vietnam started stocking a bit early, in late January and the beginning of February during their Lunar New Year festival. Many harvested in March and April due to negative impacts from the coronavirus outbreak and lower prices. As re-seeding activities were under way in May and June, harvesting of the crop is expected to take place during August and October.
According to Siam Canadian, there will be less supplies in June and July, and the second crop is likely to face some delays, which will affect operations of processors and exporters.
For black tiger shrimp, normally local farmers do less farming in June while they are preparing ponds for the main crop. The farming period takes place from August to December and harvesting season is from December to May, Siam Canadian said.