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Sao Ta Foods has announced that its sales reached USD 95 million in the first six months of the year, representing a 17% increase over the same period. This milestone marks a significant achievement for the company, with its sales reaching 45% of its yearly plan.
Production and Consumption of Processed Shrimp Products Surge
In the first half of the year, Sao Ta Foods’ production output of processed shrimp products reached 11,255 tons, a 20% increase compared to the same period last year. Consumption of these products also rose by 26% to VND 8,449 billion (USD 330.6 million). The company’s performance is attributed to its self-farmed shrimp and stable consumption activities.
However, Sao Ta Foods’ agricultural product output and consumption declined by 27% and 11%, respectively, compared to the same period last year. This could be due to various factors, including weather conditions and market demand.
Vietnam’s Shrimp Industry Sees Positive Growth
The Vietnamese shrimp industry as a whole has also seen positive growth, with shrimp exports reaching over USD 1.6 billion in the first half of the year, a 7% increase compared to the same period last year. Whiteleg shrimp accounted for nearly USD 1.2 billion, while black tiger shrimp exports reached over USD 200 million.
Despite the positive growth, Vietnam’s shrimp industry still faces challenges in the coming months. The US Department of Commerce has initiated an anti-subsidy investigation into Vietnamese shrimp imports, which could lead to additional taxes being imposed on Vietnamese shrimp exports. Sao Ta Foods is preparing for this possibility by submitting documents to the DOC and seeking to be designated as a mandatory respondent in the investigation.
Exploiting Japanese Market a Key Strategy
To mitigate the risks posed by anti-subsidy taxes, Sao Ta Foods is focusing on expanding its presence in the Japanese market, which is closer geographically and favors processed products. By doing so, the company can avoid direct competition with cheap Ecuadorian shrimp in the US and EU markets.