Seafood Exports Set A Growth Forecast For The Second Quarter Of 2023

Seafood exports in March 2023 amounted to $780 million, down 24 percent from a year earlier. Overall, seafood exports in the first quarter of 2023 were about $1.85 billion, down 27% from the first quarter of 2022...

In the first quarter of 2023, exports of most major seafood products fell from 8 percent to 39 percent compared to the same period in 2022.

According to the Vietnamese Association of Seafood Exporters and Producers (VASEP), the world market is still severely affected by inflation and economic slowdown, resulting in a drop in consumer demand for seafood, leading to a drop in export volumes and prices. Vietnam's first season of seafood is also down this year.

Notably, exports of most major seafood products fell from 8 percent to 39 percent. Exports of prawns fell 39 per cent, basa 23 per cent, tuna 33 per cent and squid and octopus 8 per cent. However, exports of other Marine fish species were still up 11 per cent year on year. 40% off shrimp exports and 32% off Basa fish

At the end of the first quarter, prawn exports were $577 million, down 40%; Basa fish export earned $447 million, down 32% year on year; Tuna exports fell 31 percent to $179 million.

Squid and octopus exports, meanwhile, also fell 8 percent from the same period last year to $54 million. In particular, Marine fish exports still edged up 3% to $435 million.

Although inflation has cooled and gasoline prices have come down, the cost of production and utility goods in the U.S. remain high, so people are holding back in favor of lower-priced goods for a while.

As a result, the average price of seafood imports in the United States is down more than 9 percent from a year ago. By the end of March, Vietnam's seafood exports to the United States were $237 million, down 55 percent from a year earlier. Prawns accounted for 37 percent, tuna 23 percent, basa 17 percent and other seafood 15 percent.

In addition to the US market, China is considered the driving force in the 2023 Vietnamese Marine exports scenario as the country completely lifts its zero COVID-19 policy. However, China is like a big cake, which is divided among many exporting countries, and the pressure of competition is too great.

For Vietnam, two of its biggest competitors, Ecuador and India, dominate the market and account for more than 60 percent of China's shrimp imports. The two countries' strengths are frozen shrimp products, which are small and cheap.

"Seafood exports to the United States have been on a downward trend since the last quarter of 2022 and continued to decline sharply in the first three months of this year. As of now, the U.S. only accounts for 14.5 percent of Vietnam's total seafood exports, but it still leads the way." Enter the market number one ". ---- According to VASEP.

Seafood exports to China and Hong Kong were nearly $230m in the first quarter, down 9 per cent from a year earlier (mainly due to a drop in January). The signals for seafood exports to this market were good in February and March, up 25 per cent and 30 per cent respectively.

Apart from the main products and advantages such as Basa fish, Vietnamese seafood companies can also take advantage of the fresh/live seafood exported to the Chinese market for use in the catering and hotel sectors. Tourism. For example: black tiger prawns, lobsters, sea fish, crabs, oysters, scallops... Fresh/raw.

This year, the number of companies participating in the fair has increased dramatically, especially in the Asia-Pacific region. Many traditional partners and new importers came to the fair hoping to find new Vietnamese products. As a result, this year's North American Expo helped Vietnam's seafood trade with importing countries such as the United States recover from the first quarter.

VASEP predicts a slow recovery in shrimp products due to intense competition with India, Ecuador and Indonesia. Against the backdrop of inflation and recession in many markets, Basa fish will be better off and will have more opportunities after China fully reopens after Covid-19. The number of Marine fish species continued to increase, including the contribution of imported raw materials such as salmon, cod and cod to export processed goods increased.

In major markets such as the European Union and the United States, Asian consumers are increasing their consumption of traditional products and exports of dried goods (fish, shrimp, squid), fish sauce, fish cakes, and canned goods. Increase.

Compared to other large markets such as the US and EU, merchants are more interested in trends of imported goods from Asian supermarkets, traditional Asian product lines such as: dry goods, fish sauce, fish sauce... Still attracting customers.

"China will become the largest import market, but the competitive pressure will be more intense because countries will also focus on this market after opening up. Exports to Europe, the United States, Japan and South Korea struggled to break through as inflation led consumers to rein in spending and average import prices fell from a year earlier. Ms. Le Hang, Public Relations Director, ----VASEP.