Photo: VASEP/FIS

Vietnam's value-added shrimp exports to the EU will grow better due to reduced inventories

VIET NAM
Thursday, August 15, 2024, 14:00 (GMT + 9)

Germany, the Netherlands, and Belgium are the three largest import markets in the bloc. As of July 15, 2024, exports to the Netherlands and Belgium grew by double digits of 19% and 21% respectively, while exports to Germany increased by 9% over the same period last year.

Vietnam's shrimp exports to the EU began to record double-digit growth from April and maintained stable growth in May and June. The Barcelona International Seafood Fair, Spain, held in April with the participation of many shrimp enterprises, may have helped to improve shrimp exports to the EU.

Shrimp exports to the EU are still affected by war, economic and political fluctuations in the world, consumers' frugal spending, and rising prices.

In the EU market, Vietnamese shrimp has to compete strongly with Ecuadorian shrimp. Ecuador has the advantage of cheap shrimp, meeting the EU consumer trend of ASC-certified shrimp, and has lower transportation costs. Ecuador is still the largest shrimp supplier to the EU market.

The EU market requires farmed shrimp to meet safety standards, requires suppliers to have solutions to reduce emissions (farming, processing), requires traceability of origin (shrimp feed ingredients, parent shrimp, etc.), requires animal welfare (parent shrimp do not have their eyes cut during artificial reproduction, and are farmed at moderate density, etc.).

It is expected that the EU's demand for shrimp imports from July to the end of the year will continue to increase. The EU economy is also gradually stabilizing, consumer prices are stable, and inflation continues to decrease. Traditional Vietnamese shrimp products exported to the EU will face competitive pressure from rival suppliers, while value-added products will increase better than in previous years because inventories have decreased significantly.

In the structure of shrimp products exported to the EU in the first two quarters of 2024, white-leg shrimp accounted for the largest proportion of 80.5%, black tiger shrimp accounted for 12.4%, the rest were other types of shrimp. In the group of white-leg shrimp and black tiger shrimp products exported to this market, processed black tiger shrimp (HS 16) recorded a decrease, while the remaining white-leg shrimp and black tiger shrimp products all increased.

Some of the enterprises exporting the most shrimp to the EU market are Minh Phu-Hau Giang, Nha Trang Seafoods - F17, Thong Thuan.

In the second quarter of 2024, the average export price of whiteleg shrimp to the EU fluctuated from 7.2-7.4 USD/kg, the price of black tiger shrimp fluctuated from 8.6-10.3 USD/kg. The average export price of both whiteleg shrimp and black tiger shrimp to the EU in the second quarter of this year tended to increase compared to the first quarter of the year and increased compared to the same period last year.

Regarding demand in the EU shrimp market, in Northwestern Europe demand for more convenient value-added products is increasing while Southern Europe is quite price-sensitive and therefore has a higher demand for affordable whiteleg shrimp products.

Source: Vietnam Association of Seafood Exporters and Producers (VASEP)

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