GROWTH IN THE GLOBAL SEAFOOD TRADE IS EXPECTED TO INCREASE IN 2021

According to the latest Global Food Outlook report of the United Nations Food and Agriculture Organization (FAO), the global seafood market is still in the recovery phase due to the impact of COVID-19, with both The fishing & aquaculture industry and consumers are still in the process of understanding the nature, scale and timing of the social and economic changes that have taken place around the world. However, there are positive signs, with total production for 2021 forecast to increase by 2% compared to 2020, indicating growth for both fishery and aquaculture production. The projections also show growth in international seafood trade for 2021 (12% in value and 3.7% in volume), as well as a slight recovery in consumption.

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While COVID-19-related restrictions are currently being lifted or loosened, many new market dynamics look likely to persist in the long term due to the pandemic. Foodservice establishments are reopening, boosting demand for species that are popular in the restaurant sector, but new problems for home cooking, food delivery, and digital sales channels still remain. At the same time, many negative impacts of the pandemic continue to affect the global trade, particularly high shipping costs and logistical delays along with new border procedures, port backlogs, and lack of shipping containers.

Prolonged tensions between China and the United States, which have resulted in the imposition of tariffs on a number of heavily traded marine products, continue to affect trade. Although they also present new opportunities for other countries, especially competitive producers. Many Chinese suppliers have turned their attention to the growing domestic market to meet additional requirements that exporters are currently negotiating.

The combination of supply chain challenges and recovering demand has resulted in higher prices for the majority of products traded. The price of aquaculture products has rebounded particularly strongly because the suppliers are delayed and the success integrated aquaculture supply chains have had in adapting to new pandemic consumer trends. . However, with so much uncertainty remaining, the risk of sharp price swings is high.

Source: mard.gov.vn H.O (according to FAO)