High demand for Vietnamese shrimp among US buyers
Wednesday, September 18, 2024, 08:24 GMT+7
American companies are eager to buy from Vietnam’s shrimp market as global production declines, freight rates rise, and the year-end holiday season approaches, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
U.S. importers have been rushing to place orders, especially for white-legged shrimp, over the past few months.
In August alone, 33,000 metric tons of white-legged shrimp were purchased, the highest volume recorded this year, VASEP reported.
Kim Thu, a market expert at VASEP, said that U.S. companies are expected to increase imports in the second half of the year to meet rising demand during the holiday season, which includes Halloween, Thanksgiving, Christmas, and New Year.
As this year’s global shrimp output is forecast to decrease by five percent, combined with rising freight rates, U.S. importers have increased their shrimp orders from Vietnam to avoid disappointment, Thu added.
On the other hand, inflation is potentially easing in the U.S., which would strengthen the shrimp purchasing power there, also prompting American companies to stock up.
Entrepreneur Nguyen Khanh Nguyen, who exports shrimp from southern Bac Lieu Province, confirmed a rise in orders from American partners for shrimp since July.
He cited U.S. customers as telling him that Ecuadorian and Indian shrimp exports have declined amidst antibiotic residue issues, propelling Vietnamese white-legged shrimp to the top choice for Americans.
Nguyen will also focus on developing relationships with China, South Korea, Japan, and European countries to ensure long-term sustainability, a tactic gaining popularity with other Vietnamese shrimp exporters.
As Vietnamese shrimp exports to the U.S. rise, so does the price.
According to VASEP, the price of white-legged shrimp has climbed from US$9.6 per kilogram in February to $10.2 recently, contributing $1.75 billion to the market, an eight-percent year-on-year jump.
Globally, Vietnamese shrimp exporters earned $2.4 billion during the same period, reflecting a nine-percent expansion from the previous year.
Vietnam’s shrimp exports to the U.S. surpassed $450 million, marking a five-percent spike compared to last year.
White-legged shrimp alone accounted for $1.75 billion, an eight-percent hike.
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