Scarcity of raw materials for seafood processing

Lack of raw materials for processing is a constant concern for seafood businesses and the effects of drought and salinity at the beginning of the year have made the shortage of raw materials even more serious.

30 - 40% shortage

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), as of August 2016, the new pangasius farming area in the Mekong Delta provinces has decreased by about 26%, and the harvested area has also decreased by nearly 20% compared to the same period in 2015. Of the 10 provinces with pangasius farming areas, 9 provinces have seen a sharp decrease in new farming areas, such as Kien Giang, Soc Trang, Can Tho... Currently, fish from the people have run out and businesses that want raw materials to process for export must find other sources such as imports, self-raised fish...

Similarly, shrimp is not much better when processing enterprises are having a headache with the problem of shortage of processing materials. In key provinces of shrimp farming such as Ca Mau, Soc Trang... in the first months of this year, many shrimp farms in the area did not have enough supply for factories and seafood processing and exporting enterprises in the area. In Ca Mau province alone, although shrimp prices have increased, up to now, the whole province has only been able to breed and stock about 40% of the area of ​​industrial shrimp farming ponds.

"The reason is that the hot weather and prolonged drought and salinity have caused our main aquaculture products such as tra fish, shrimp, etc. to die en masse. Meanwhile, the price of aquatic feed is increasing, causing profits to decrease, negatively affecting farmers," Mr. Nguyen Van Hau in Cai Nuoc district (Ca Mau) lamented.

Mr. Truong Dinh Hoe, General Secretary of Vasep, said that the shortage of raw materials for seafood processing is about 30-40%, which is a big obstacle for seafood exporting enterprises. In addition, the environmental incident in the Central provinces has reduced the output of seafood caught and purchased by enterprises by 60% compared to the same period in 2015. Due to the severe shortage of raw materials for aquaculture and fishing, enterprises have only purchased about 40% of raw materials in the past 8 months and sales have decreased sharply.

“If we did not encounter a shortage of raw materials, the export of many seafood products, such as shrimp, would have grown even stronger. This is not a new problem, but for many years there has been no radical solution. Our business has not been relieved of the constant worry of raw material shortages, and the factory has to operate below capacity,” said Ms. Le Thi Hat, Director of Minh Hieu Bac Lieu Seafood Joint Stock Company.

Import required

According to industry experts, the price of imported shrimp is always lower than the price of domestic raw shrimp by 22,000 - 44,000 VND/kg, so it will be the most effective solution to help businesses solve the problem of raw material shortage. Importing seafood raw materials is considered a necessary solution to help the industry achieve the goal of exporting 10 billion USD worth of seafood by 2020. Countries that domestic businesses are "watching" are India, the Philippines, Indonesia...

"In the first 6 months of this year alone, the output of imported seafood materials increased by nearly 67% compared to the same period in 2015. The largest import markets were India, accounting for 15%; Japan for 12% and Taiwan for 11%...; mainly in the two groups of shrimp and fish. Imported seafood materials for processing and export production are contributing from 7 - 14% of the industry's turnover value," said Mr. Bach Duc Luu, Director of the Veterinary Agency of Region VI.

In an effort to help the aquaculture industry become self-sufficient in domestic raw material supply, the Ministry of Agriculture and Rural Development has just issued an action plan for shrimp farming development in 2016, focusing on developing a plan to prevent and control shrimp diseases, expand farming areas, apply intensive farming, and ecological shrimp farming... In addition, the Ministry also proposed to the Government to implement a number of appropriate credit measures and policies for export processing enterprises and shrimp farmers with capital difficulties to develop production...

"Localities need to re-plan aquaculture areas according to the planning, as well as implement linkage solutions to help stabilize raw material purchasing and reduce input costs to improve competitiveness. From now until 2020, we will limit new investment in seafood processing facilities that produce semi-processed products, but encourage businesses to invest in modern equipment and technology to increase product value and added value to 60-70% of the total processed seafood output, gradually increasing the export value of seafood," Mr. Nguyen Ngoc Oai, Deputy Director General of the Directorate of Fisheries, emphasized.

According to baotintuc