W6 Shrimp Update: Innovations in Vietnam's Shrimp Industry and USDA Support for US Gulf Shrimp Producers

Published 2024년 2월 16일

In W6 in the shrimp landscape, operating in over 150 countries, Vietnam's shrimp industry confronts intensified competition, particularly from Ecuador, which has witnessed a surge in shrimp production to 2.5 mmt. Despite this pressure, Vietnam's shrimp exports declined by 21% YoY to USD 3.4 billion in 2023. To counter these challenges, innovative strategies and technological advancements are pursued, such as the successful pilot of a super-intensive white-leg shrimp farming model utilizing recirculating aquaculture technology. Infrastructure investments and strategic planning in provinces like Cà Mau and Bạc Liêu aim to bolster the industry's resilience and transition to sustainable high-tech farming. Meanwhile, in the US Gulf of Mexico, the USDA's allocation of USD 32.5 million in contracts to domestic shrimp suppliers, led by Paul Piazza & Son, seeks to support the struggling Louisiana shrimp industry amidst various challenges, including natural disasters, supply chain disruptions, and global price pressures.

Vietnam's Shrimp Industry Navigating Competition with Technology and Strategy

Present in over 150 countries, Vietnam's shrimp industry faces growing pressure from global competitors, necessitating strategic innovation and technological adoption to secure its market share. Vietnam confronts stiff competition, particularly from Ecuador, whose shrimp production has surged to 2.5 million metric tons (mmt). According to the General Department of Vietnam Customs, shrimp exports declined by 21% year-on-year (YoY) to USD 3.4 billion in 2023, reflecting the competitive environment.

The Department of Science and Technology in Cà Mau and the Research Institute for Aquaculture No. 2 have successfully piloted a novel super-intensive white-leg shrimp farming model. This model utilizes recirculating aquaculture technology, minimizing water exchange and enhancing biosecurity, leading to cost reductions and a 20% output increase compared to conventional methods. Mekong Delta provinces like Cà Mau and Bạc Liêu are investing in aquaculture and shrimp farming infrastructure to strengthen their positions. The director of Research Institute No. 2 emphasizes strategic planning for farming areas, considering access to the national grid, stable power supply, clean water, and proximity to waterways, to facilitate the transition to sustainable high-tech shrimp farming. Vietnam's shrimp industry needs to continuously invest in technological advancements, sustainable practices, and strategic planning to navigate the competitive landscape and maintain its success in the global market.

USDA Awards USD 32.5 Million Contracts to Support US Gulf Shrimp Industry

The United States Department of Agriculture (USDA) has awarded contracts totaling USD 32.5 million to several US Gulf of Mexico wild shrimp suppliers in a move aimed at bolstering the domestic industry facing various challenges. The USDA issued the contracts on Feb-24 following a bidding process started in mid-January. Several companies received contracts, with Paul Piazza & Son (USD 15.1 million) securing the largest share. Other notable recipients include Lafitte Frozen Foods Corp. (USD 5.07 million), Ocean Select Seafood (USD 4.25 million), C.F. Gollott and Son Seafood (USD 4.33 million), and Tommy's Seafood (USD 1.9 million).

The contracts were announced by a United States (US) Representative (R-Louisiana) on Dec-23. They aim to support the Louisiana shrimp industry, which is facing pressure from numerous factors, including natural disasters impacting fishing activities, labor and supply chain disruptions, and competition from illegally caught and low-priced imported shrimp. According to National Oceanic and Atmospheric Administration (NOAA) data, global shrimp prices remain near historic lows, further impacting domestic producers. The USDA contracts are expected to provide much-needed financial relief to US Gulf shrimp businesses.