Many 3-star certified peeled shrimp processing facilities in Dien Chau have ceased operations.

Peeled shrimp has long been a renowned specialty of the coastal localities of Nghe An province in general and in this area in particular.Dien Chau districtIn 2017, Dien Chau peeled shrimp received collective trademark certification, and in 2021, Dien Chau district peeled shrimp continued to receive OCOP 3-star certification. It was thought that these would be stepping stones for the product to assert its position in the market; however, peeled shrimp production is currently facing a severe shortage of raw materials.

Traditional peeled shrimp processing facilities in Dien Chau are deserted due to a shortage of raw materials. Photo: QA

Visiting the peeled shrimp processing facility of Ms. Dao Thi Kim Oanh in Dien Ngoc commune, we observed that the equipment used for traditional peeled shrimp production lay idle in the warehouse, no longer showing the scene of dozens of people crowded together working as before. Ms. Oanh said: “The yield of peeled shrimp has decreased sharply recently. Previously, I could import an average of 2-3 tons of fresh shrimp per day to produce peeled shrimp, but now it's only about a few hundred kilograms. This inconsistent supply of raw materials has disrupted production, and in the past few months, we were forced to close down and temporarily suspend operations.”

This is also the general situation for dozens of households producing peeled shrimp in Dien Ngoc commune at this time. According to the Dien Ngoc commune authorities, the entire commune has 323 fishing vessels with a monthly output of approximately 1,700 tons of various seafood, however, the fresh shrimp production was only about 17 tons last month, lower than other types of seafood.

Materials and supplies for making handmade peeled shrimp are piled up because there is no supply to produce them. Photo: QA

The reason for the declining fresh shrimp production is that fuel prices remain high, preventing the number of fishing vessels from reaching the same level as before. In addition, current shrimp fishing methods are unscientific and destructive, leading to a further decrease in shrimp stocks.

Furthermore, the recent occurrence of storms in the South China Sea has disrupted fishing activities. Therefore, whenever boats return to port, the fresh shrimp are quickly consumed to meet daily market demand, leaving only a negligible amount for processing into peeled shrimp.

The price of processed peeled shrimp on the market has now doubled, reaching 1.2 - 1.3 million VND/kg, making it inaccessible to consumers. For traditional peeled shrimp workers, who used to earn several hundred thousand VND a day, many businesses are now operating at a reduced capacity or have closed down, forcing them to find other jobs to maintain their income.

The price of processed peeled shrimp has now increased due to a shortage of raw materials. Photo: QA

In addition, expanding the market and promoting shrimp products also faces many difficulties. Introducing peeled shrimp into major sales channels, supermarket chains, and agricultural product stores is challenging due to inconsistent supply.

Currently, shrimp processing facilities are trying to adapt to the shortage of raw materials. Most households have cut their workforce by about 50% to reduce costs, while some have accepted importing goods from outside Dien Chau district at higher prices to continue their business. In addition, producers hope that fuel prices will decrease so that fishermen can confidently go out to sea and the supply of raw materials will be more stable.

Previously, shrimp processing facilities were always crowded and bustling. Photo: QA