A downturn in June sales marked the first monthly decline in Vietnam’s shrimp exports in 2022.
The United States, the top market for Vietnamese shrimp exports, purchased USD 93 million (EUR 91.3 million) in June, down 36 percent from the same month in 2021. That result pulled down its overall June shrimp exports 1 percent year-over-year to USD 416 million (EUR 408.4 million), according to data from Vietnam Association of Seafood Exporters and Producers (VASEP).
However, Vietnam achieved double-digit growth in its overall shrimp exports by value in the first five months of the year and through the first half of 2022, Vietnam’s shrimp exports were up 31 percent year-on-year to USD 2.3 billion (EUR 2.2 billion).
Despite the drop in U.S. exports for the first half of 2022, Vietnam still logged a 10 percent year-on-year increase in its sales to the U.S. thanks to roaring sales between January and May 2022, with Vietnam’s U.S. exports reaching USD 483 million (EUR 474 million) in H1 2022.
High inflation has affected U.S. shrimp consumption, VASEP said. Moreover, high stockpiles, as well as high shipping costs and container shortages, have together contributed to higher prices, less availability, and lower demand for shrimp from buyers in the U.S., VASEP said.
Vietnam’s sales to other markets grew in the first half of 2022. Its sales to Japan rose 15 percent year-on-year to USD 333 million (EUR 327 million) between January and June. Given the lower shipping costs to Japan than to the U.S. and the European Union, and lower inflation rates in the country, Japan has become a favored alternative market for many Vietnamese shrimp exporters.
Sales of shrimp from Vietnam to the E.U. increased 37 percent year-on-year to USD 74 million (EUR 72.6 million) in June, pushing H1 2022 sales by value USD 378 million (EUR 371 million), up 48 percent year-over-year. However, VASEP said sales to the E.U. have slowed in the second quarter compared to Q1 2022 and that trend will continue through 2022 as the bloc copes with high inflation, the devaluation of the euro against the U.S. dollar, fallout from the Russia-Ukraine conflict, and the rise in fuel and commodity costs.
The value of the shrimp sent from Vietnam to China was USD 58 million (EUR 57 million) in June, 32 percent higher year-on-year, with total sales in the H1 rose 84 percent to nearly USD 333 million (EUR 327 million).
VASEP said Vietnamese exporters will face ongoing difficulties in securing raw materials for processing, adding a further market crunch in the back half of 2022.
Fimex (Sao Ta), one of the country’s top shrimp exporters, backed that opinion, saying it expects a sharp decline in the national supply of shrimp for processing as many farmers are hesitant to begin seeding their second crop of the year, primarily due to disease outbreaks.
Photo courtesy of David Nguyen VN/Shutterstock
