Problems for some are usually opportunities for others

Problems with Ecuadorian shrimp opens the doors to Vietnam? (Video)

CHINA
Wednesday, October 16, 2019, 17:30 (GMT + 9)

VASEP reports on the ban issued by China on shrimp imports from five large Ecuadorian shrimp exporting companies for fear that the disease could spread to the country. Apparently, after the Chinese ban, Ecuadorian shrimp exports to this market have declined, but what about Vietnamese shrimp? Is that an opportunity or a challenge?

On September 9, China banned shrimp imports from Ecuador's two largest shrimp companies, Industrial Pesquera Santa Priscila and Omarsa, due to the detection of white spot virus (WSSV) and yellow-headed virus (YHV) in the product. shrimp exports of these 2 companies. These are viruses that cause disease in shrimp. Yellow-headed virus can affect important organs of shrimp and white-spot virus affect their appetite and motor function.

Iván Ontaneda, Minister of Production, Foreign Trade, Investment and Fisheries, announcing that an official delegation from Ecuador would travel to China to try to resolve the issue with the Chinese authorities (Photo: Stockfile)

On September 11, 2019, China continued to ban imports of shrimp from three more Ecuadorian companies, including Expalsa, WinRep and Congelados y Frescos, on the grounds that the white spot virus and the necrotic virus and the hematopoietic organs were detected. (IHHNV).

After the talks, China allowed Omarsa to export again while imposing a ban on the remaining four companies. The remaining 4 companies are currently only allowed to export cooked steamed shrimp to China.

OMARSA corporate video: Omarsa Sustainable Shrimp

5 companies under China's ban account for about 40% of Ecuador's total shrimp export.

China is Ecuador's largest shrimp import market. Five years ago, China accounted for 30% of Ecuadorian shrimp exports (68,603 tons, valued at US $ 584 million). In 2018, this proportion increased to 61%, equivalent to 281,718 tons. Ecuador is also the largest shrimp supplier to China, accounting for 40% of China's total shrimp imports. Vietnam is the fifth supply, accounting for 4.8%.

In the first eight months of this year, Ecuadorian shrimp exports to China reached 210,000 tons, worth more than US $ 1 billion, a sharp increase over the same period last year but the ban caused Ecuadorian shrimp exports to China to decline in September.

Ecuadorian shrimp (Photo: Stockfile)

China is also one of the major export markets for Vietnamese shrimp enterprises, which is now the fifth largest market. The reduction of shrimp imports from Ecuador by Ecuador due to the ban could create opportunities for Vietnam to increase shrimp exports to China. Quoc. However, this opportunity does not necessarily last forever because the ban also depends on factors such as politics, diplomatic relations, trade between the two countries ... that are lifted sooner or later.

Looking back in recent years, plus China's ban on Ecuadorian shrimp, it is clear that the trend of countries with both shrimp farming and shrimp imports such as Australia, South Korea and China is that they must definitely closely examine the epidemic. disease in imported shrimp to ensure their domestic production.

OMARSA shrimp (Photo: OMARSA)

Therefore, the shrimp industry and Vietnam shrimp industry need to see clearly the challenge from China ban Ecuadorian shrimp. Firstly, the ban on Ecuadorian shrimp is lifted sooner or later, we can not foresee, it may depend on the political and trade developments that China is involved in, it may depend on diplomatic relations. Ecuador and China ... If Vietnamese enterprises rush to export more into this market, it may be passive when the situation changes, leading to price pressure, lower prices ...

The second most likely possibility is that after Ecuador, it will be India, Vietnam and some other shrimp producing countries. Therefore, we have to anticipate this possibility, being prepared for the trend of increasing disease testing of shrimp importing markets such as Australia, Korea and China and possibly other markets. And it will not only test for yellowhead disease, white spot disease in shrimp but also other diseases such as MBV (stunting disease caused by shrimp infected with MBV virus), red tail disease or Taura syndrome, necrotic necrosis in shrimp ( IHHNV) ...

Left: Omarsa processing line (Ecuador) Right: Vietnamese shrimp processing line

For Vietnamese shrimp exported to China, from 2014, Vietnam and China signed an agreement on aquatic food safety control, under which China monitors four diseases: yellow-headed yellow spot, MBV. , Taura, IHHNV for black tiger shrimp and whiteleg shrimp. However, Vietnamese shrimp producers and exporters also need to anticipate the possibility that China will have a stricter inspection of diseases in shrimp exports from Vietnam, possibly not only to inspect live shrimp and other types of products. other as chilled, frozen.

Therefore, Vietnam shrimp industry needs to be proactive in controlling and monitoring diseases (focusing on the environment of ponds, breeds, nutrition, etc.), ensuring the quality of food safety and disease safety in production. Export products not only to China market but also other markets.

Author: Kim Thu/VASEP

editorial@seafood.media
www.seafood.media

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