Vietnam’s top shrimp company, Minh Phu Seafood, has chosen to focus on processing large-sized shrimp during Vietnam's ongoing COVID-19 lockdown.
Minh Phu CEO Le Van Quang said during a shrimp-related seminar on 1 September that his company has only been able to keep 22.9 percent of its workforce, or 1,600 workers, at its Minh Phu Ca Mau factory, and 21.7 percent, or 1,300 workers at its Minh Phu Hau Giang plant, due to the heightened health and safety protocols put in place by the Vietnamese government. However, Minh Phu was able to keep its processing capacity at the two factories at around 50 percent because the company has focused on processing shrimp with sizes ranging from 10- to 45-count per kilogram, Quang said. The company made that decision because the U.S. and European markets currently favor larger-sized shrimp, Quang said.
“There is a big demand for shrimp. From now until the year-end, we do not worry about not being able to sell, but worry most about whether we are able to process,” Quang said. “Demand for big sizes from the U.S. is very strong. Now we could sign contracts to sell hundreds of containers for 40-count per kilogram if we are able to supply.”
Despite high demand from the company’s major markets, Minh Phu has only signed contracts to sell 50 to 70 percent of its processing capacity. Quang said he hopes to be able to run the firm’s factories at full capacity once the lockdown is lifted.
Quang said Minh Phu has advised its farmers to focus on farming bigger sizes of shrimp by reducing their stocking densities to between 100 and 120 post-larvae per meter square, down from 250 to 350 per meter square.
But Minh Phu will face competition in the marketplace for larger-sized shrimp, as processors across the Mekong Delta region are hesitant to purchase smaller shrimp because they also don’t have the workforce to handle them.
“It is easy to sell sizes of between 10- and 30-count per kilogram. We received many orders for sizes of 10- to 45-count per kilogram,” Quang said.
Quang said he has advised farmers to overcome their hesitation about current market conditions and start seeding now, with the goal of harvesting in November, so the country’s factories can have enough time to process and sell to the U.S. and Europe in time for the year-end holiday season. For shrimp harvested after November, exporters can sell to Asian markets, including Japan, South Korea, China, Taiwan, and Hong Kong, Quang said.
Photo courtesy of Minh Phu Seafood
