Vietnam’s top-producing shrimp company, Minh Phu Seafood, saw its export value of shrimp products rise in 2021 as sales to US, Australia, and the E.U. surged.
The company shipped shrimp worth USD 648.7 million (EUR 567 million) in 2021, an increase of 10 percent from 2020. However, its export volume fell 3 percent year-on-year to 52,597 metric tons (MT).
Minh Phu CEO Le Van Quang told SeafoodSource the company had a difficult year in 2021, through which Vietnam experienced the worst COVID-19 outbreak since the start of the pandemic. Its supply chain was disrupted for months, with producers including Minh Phu being required to implement a “3-on-site” model, meaning workers had to work, eat, and sleep within the premise of their plants.
With fewer workers at its processing plants during lockdowns, Minh Phu has shifted to focusing on processing larger-size shrimp to better cater to demand from the U.S. and the European Union. And despite a decrease in processing capacity, the company’s export value rose eventually thanks to sales of more large-size products, Quang said, adding that the company’s profit results will be announced later in January.
The U.S. was the top buyer of shrimp from Minh Phu last year, purchasing products worth USD 221.1 million (EUR 193.3 million), up 48 percent year-on-year and accounting for 34.1 percent of the company’s total annual export value.
The other major markets that also saw a growth in sales in 2021 included the E.U. with USD 73.8 million (EUR 64.5 million), up 19 percent from 2020; Australia and New Zealand with USD 69.8 million (EUR 61 million), going up 18 percent year-on-year; and South Korea with USD 30.26 million (EUR 26.5 million), up 12 percent.
However, sales to Japan, Minh Phu’s second-largest market, contracted 12 percent year-on-year to USD 127 million (EUR 111 million). The company’s sales to Canada also dropped to USD 67.1 million (EUR 58.6 million), 14 percent lower year-on-year, and its sales to Russia lowered to USD 22.24 million (EUR 19.4 million), down 20 percent from 2020.
To promote its global competitiveness and maintain its status as Vietnam’s top shrimp exporter, in 2021, Minh Phu announced its plans to invest VND 1.35 trillion (USD 59.4 million, EUR 52.5 million) to build three processing plants in the Mekong Delta.
Photo courtesy of Minh Phu
