Sao Ta Food Joint Stock Company (FMC) has just announced January sales with 15.2 million USD (regarding 359 billion VND), down 47% over the same period.
Specifically, finished shrimp production reached 581 tons, down 69%, finished shrimp consumption was regarding 1,111 tons, down 53% over the same period.
Regarding agricultural products, in January, the company’s production of finished products was regarding 80 tons, down 51%, consumption of finished agricultural products was 163 tons, up 42% over the same period.
Explaining the reason for the decrease in sales, Sao Ta said that the company only operated for 20 days in January, the rest was Tet holiday. Not only that, shrimp materials are scarce because at the end of the season and orders are less than in the same period.
| FMC’s sales dropped sharply in the first month of the year. |
To overcome the above situation, the company’s shrimp farm has stocked since the 7th of Tet and tried to complete it in 20 days. The new farm is in the process of completing the system of ponds and stocking at the end of the second quarter.
According to the Association of Seafood Exporters and Producers (VASEP), inflation penetrated deeply into the economies of other countries, causing a sharp drop in demand and orders. IV/2022 and the same period.
However, the seafood industry still has optimistic hopes on good signals from some markets with more stable economies, less affected by inflation, such as ASEAN, the Middle East and CPTPP countries.
In addition, China’s removal of control regulations on imports such as testing, sterilization and quarantine will relieve a major bottleneck, opening more doors for exports to the world’s most populous market. This.
However, according to SSI Research, China is a price-sensitive market and the average selling price to this market is always regarding 40% lower than the average selling price to the US market.
Experts say revenue from the Chinese market will partially offset the decline in revenue from the US and EU, but not enough to provide a chance for companies to recover profits in the first half of 2023. This is likely due to the high level of comparative returns in 2022.
