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May 5, 2015

Thailand and Vietnam

CP Foods Plans to Double Processed Shrimp Production in Vietnam

 

Thailand’s Charoen Pokphand Foods plans to double its production of processed shrimp in Vietnam in 2015.  It produced around 6,000 metric tons of finished products from its two processing plants in Vietnam in 2014.  In 2015, the target is 10,000 to 12,000 tons.

 

CP Foods set up a second processing plant in Vietnam in early 2014, in Hue, through its CP Pokphand subsidiary.  Its other processing plant is in Dong Nai, Vietnam.

 

The Vietnamese plants enable CP to sell shrimp to Europe at preferential rates under the Generalized System of Preferences (GSP), an option that’s no longer available for Thailand.  Although selling to the European market was part of the reason for the plants in Vietnam, demand from in Europe had decreased dramatically, while demand from Asia, particularly from China and South Korea, had increased.

 

Shrimp farmers in Thailand have high production costs, making it difficult for them to compete with other shrimp farming countries, like India, Indonesia and Ecuador, where production has increased.

 

In Thailand, it’s not clear if prices have hit bottom.  They are now at $4.86 a kilo for 60 count shrimp [presumably the farm-gate price for whole shrimp].

 

Source: Undercurrent News [eight free news reads every month].  Editor, Tom Seaman.  CP Foods Plans to Double 2015 Shrimp Output From Vietnam.  Tom Seaman  (undercurrent@undercurrentnews.com).  May 4, 2015.

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