Vietnam has had to reduce shipments of tuna, squid, and octopus in the first two months of this year because it could not import sufficient material for processing due to impacts from the coronavirus outbreak, Vietnam Association of Seafood Exporters and Producers (VASEP) said in a statement on Monday, 23 March.
The country exported tuna worth USD 94.5 million (EUR 88 million) during January and February, down 2.6 percent from a year earlier. The export value of squid and octopus fell 26.4 percent year-on-year to USD 65.9 million (EUR 61.6 million) in the period.
“There is a shortage of tuna material in the world due to low caught output, leading to rising prices,” VASEP said, adding that its members are expanding their search for more material from many countries to meet their processing demand.
VASEP had already warned of the lack of tuna material in February because the coronavirus outbreak has disrupted operations of nearly 300 tuna fishing vessels in China, the fourth-largest supplier of tuna material for Vietnam last year, SeafoodSource reported.
The coronavirus pandemic is taking toll on Vietnamese tuna companies, with many orders from foreign buyers cancelled or postponed. Many have had to slash processing capacity and are struggling to pay wages for their workers.
Their import and export plans are being affected as many shipping lines have reduced their fleets, making trade flow to and from Vietnam more difficult. They are also facing higher fees and changeable ship schedules, VASEP said.
At present, only European countries have high demand for canned marine seafood products. Demand for sea-caught seafood like tuna, squid, and octopus in other markets – including the U.S., China, and South Korea – has declined significantly. Therefore, some processors in Vietnam are shifting to producing canned products to boost exports to Europe.
But most of the companies are likely to experience tough times, particularly from May on, because of material shortages and the rising cost of keeping goods stockpiled. VASEP said support from the government’s credit and tax packages is crucial to help the industry overcome the difficult time.
Photo courtesy of TRAN THI HAI YEN/Shutterstock
