HANOI (Vietnam): Though Vietnamese shrimps are gaining floor within the worldwide market, it’s only a matter of time earlier than the nation loses its aggressive benefits because of poor farming practices, business insiders say.
Lê Văn Quang, common director of Minh Phú Seafood Company is worried that the shrimp business has been rising to the detriment of the setting over the previous 20 years.
The spontaneous proliferation of shrimp farms has led to the extreme contamination of farming water within the Mekong Delta, pushing up farming overheads and making shrimps much less aggressive.
Notably, Vietnam’s farming prices are 10-15 per cent increased than these of its rivals together with India, Ecuador and Indonesia.
Moreover, native corporations are much less strict about high quality administration and origin monitoring, and the co-operation between provide chain actors is weak, additional eroding the nation’s competitiveness.
“Ecuador has 250,000ha of farms however its shrimp output is corresponding to that of Vietnam which has as much as 740,000ha. In 2021, the previous produced 940,000 tonnes whereas the latter produced 970,000 tonnes. It’s regarding that Ecuadorian shrimps are simply half or one-third of the costs of Vietnamese shrimps,” Quang burdened.
The overall director can also be nervous about India, which has outpriced Vietnam within the worldwide shrimp market. In 2021, India produced round 700,000 tonnes of shrimps and its shrimps have been 20-30 per cent cheaper.
“If Vietnam doesn’t take a look at methods to enhance its competitiveness, its shrimps can be priced out of the worldwide market within the subsequent 5 to 10 years,” warned the final director.
Quang believes breeding methods maintain the important thing to a greater shrimp business.
He put down Ecuador’s value benefits to its twenty-five-year selective breeding plan, which has made its shrimps extra immune to ailments and raised the survival price to 90 per cent.
In the meantime, Vietnam remains to be depending on imported breeding shrimps or these caught naturally.
He urged Vietnamese corporations and farmers to breed high-quality shrimps that meet OIE requirements, thereby enhancing output and producing higher shrimps with disease-resistant traits.
The overall director additionally mentioned that the expansion of shrimp farms with out correct water provide and drainage methods usually goes hand in hand with the unfold of water-borne shrimp ailments.
He burdened the necessity for a sustainable worth chain and better-organised farms in Mekong Delta to make the business extra aggressive and eco-friendlier.
“We must always concentrate on built-in mangrove shrimp aquaculture, which might assist rehabilitate mangrove forests and produce high-quality shrimps,” mentioned the final director.
Quang additionally advised the event of super-intensive shrimp farms in areas endowed with a great water provide and drainage methods to spice up productiveness.
Nguyễn Hoài Nam, deputy secretary-general of Vietnam Affiliation of Seafood Exporters and Producers, revealed that Ecuador’s shrimps decreased its market shares in China final yr, from 53 to 45 per cent.
In the meantime, the nation’s whole market footprint rose to 46 per cent in each Europe and the US throughout the interval.
“We’ve got been preserving a detailed watch on India and Ecuador. Their current market shifts have posed new aggressive challenges to our shrimp,” Nam mentioned.
The deputy secretary burdened that costs are the deciding think about competitiveness. As the standard of breeding shrimps determines shrimp costs, it holds the important thing to a extra aggressive and sustainable shrimp business.
“We’ve been making an attempt to enhance breeding shrimps for years. Since we’re competing with Ecuador and India, costs will dictate how our shrimp exports appear like within the subsequent three to 5 years, and even 10 years,” Nam added.
Based on specialists, it’s essential to include inexperienced development, local weather change adaptation, round economic system and digital transformation to the shrimp worth chain to enhance the business’s competitiveness and to not lag within the world path to sustainable improvement.
As provide chain disruptions have led to extreme labour shortages, specialists additionally referred to as on native authorities to grant extra lands and beneficial loans to shrimp corporations so they might construct extra dormitories for employees.
Within the medium- and long-term, five-year low-interest loans must be granted to corporations to encourage extra investments in supplies areas and processing factories.
Moreover, coverage modifications also needs to be thought-about to assist corporations minimize prices, thereby lowering their costs within the worldwide market.