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April 29, 2020

Vietnamese Seafood Markets Amid COVID-19

The COVID-19 pandemic has had a significant impact on the seafood markets in Vietnam, particularly in the Mekong Delta region. While pangasius material prices remain flat, the lifting of social distancing measures on April 22 has generated expectations of growing demand for domestic shrimp. Pangasius Material Market Prices of pangasius material in the Mekong Delta region in March 2020 ranged from 18,000-18,200 dong/kg. Despite the reduction in production since early April, demand for pangasius has trended downward. However, prices have been more stable than in the previous month. The market for pangasius material in the Mekong Delta has remained flat due to a drop in orders from most importers. In the first quarter of 2020, pangasius exports to the EU market decreased slightly by 5% in quantity but saw a significant slump in value compared to the same period last year. The US and EU are two epicenters of the coronavirus pandemic. Shrimp Market The lifting of social distancing measures has generated expectations of growing demand for domestic shrimp. Meanwhile, prices of white leg shrimp continue to rise in the Southwest region. For instance, white leg shrimp material size 100 pcs/kg had been once sold at 73,000-75,000 dong/kg, and size 30 pcs/kg was at 128,000 dong/kg. In early April, they inched up even more. In particular, size 15 pcs/kg was sold at 244,000 dong/kg, size 20 pcs/kg was at 202,000 dong/kg, size 25 pcs/kg was at 169,000 dong/kg, size 30 pcs/kg was at 132,000 dong/kg, and size 100 pcs/kg was at 90,000 dong/kg. Exports to China In April 08-14, 2020, pangasius exports to China increased by 33% through seaway but decreased sharply by 43% through border gates compared to the same period last year. Impact of COVID-19 The COVID-19 pandemic has affected seafood markets globally. In particular, sales of Vietnamese pangasius to the US saw a slump in two weeks, Mar 25-31 (-40%) and April 01-04 (-50%). It has also resulted in a drop in orders from most importers and a decrease in exports to the EU market. The Mekong Delta region has been no exception to these impacts.

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Farmers appear to hesitate to stock shrimps in the new crop

Introduction Shrimp farming is a crucial sector in the coastal farming area of the Mekong Delta. However, the sector is currently facing challenges due to the impact of the acute drought, salinity intrusion, and COVID-19 pandemic. The purpose of this article is to explore the impact of these challenges on the shrimp farming industry in the Mekong Delta. Slow Stocking Rate The acute drought and salinity intrusion have resulted in a slow stocking rate for shrimp farming. Farmers in Vĩnh Tân commune, Vĩnh Châu town, Sóc Trăng province are waiting until May when rain comes and the temperature is cooler. The sweltering sunshine has been beating down all over the coastal area since March 2020. The whole large shrimp farming area from the Trần Đề estuary to the side of the intensive shrimp farming areas in Vĩnh Châu district of Sóc Trăng and Bạc Liêu is quite silent regardless of the new crop run-up. Fear of Risks The ever-severe salinity intrusion this year has made farmers fearful of risks. One farmer found his shrimp dead after 20 days of stocking because he had rushed to stock. Some white leg shrimp size 200 pcs/kg are sold in the village market after over one month and a half of stocking. They were harvested early when shrimp were found weak. Thus, many households are waiting for rain and salinity reduction to start stocking. Low Prices and Stagnant Exports In addition to the harsh weather conditions, local farmers are hesitant to stock shrimp due to low prices. Shrimp size 100 pcs/kg are priced at 76,000 dong/kg by factories. Moreover, factories are purchasing moderately as exports are stagnant. Impact of Diseases The Sóc Trăng Fisheries sub-department has warned local farmers that hot weather and high salinity degree can result in damage caused by diseases like white spot, red body, acute Hepatopancreatic Necrosis Syndrome – AHPNS, and recently the most concerned Enterocytozoon hepatopenaei disease. Conclusion The shrimp farming industry in the Mekong Delta is currently facing significant challenges due to the impact of drought, salinity intrusion, and COVID-19. The slow stocking rate, fear of risks, low prices, and stagnant exports are all contributing factors to the industry’s struggle. With the Sóc Trăng main crop starting on January 20 and ending on September 30, the growing ponds are now filled with the same amount of shrimp as last year. Farmers are hopeful that rain and salinity reduction will help improve the situation in the coming months.

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