Seafood exporters: Measures to overcome difficulties

Higher input costs such as electricity (+15%), raw material (+20%), labour wages (+20%), has pushed output cost to increase about 20% per ton of final seafood products while the product prices were up only 10%, Nguyen Thi Anh, Director of Song Tien Seafood Corporation (Sotico) said. Besides, the raw material cost rose drastically, for example, raw pangasius up more than 9%, squid nearly 20% and scampi 40%.

Though the company’s seafood exports in the first months of this yeafarly 2011 reached averagely US$3 million per month, Sotico still met many difficulties, particularly, the drop of half its production capacity due to electricity cuts. To solve these difficulties, Sotico has taken measures such as using electrical generator serving for production and pangasius farming in the area of 20 hectares at the end of 2010. The company is due to harvest in June, 2011 with the yearly output of 12,000 tons.

Representative from the Thihaco Seafood says the rise in raw material prices does not impact seriously its production because the company ensures 60% of its total raw material supply.

Source: VASEP


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: