FMC: Mekong Delta Whiteleg Shrimp Prices Continue Sharp Decline, Pressuring Profits

Overview

Raw whiteleg shrimp prices in the Mekong Delta continue to fall sharply, with large sizes (50 con/kg) dropping 43,000 VND/kg year-on-year to 97,000 VND/kg. The chairman of Sao Ta Foods (FMC) states the industry has recovered in export volume but not in profitability, as processors face low selling prices and high input costs. This trend directly pressures FMC’s margins and reflects broader sector challenges.

Key Facts

• Whiteleg shrimp price for size 50 con/kg fell to 97,000 VND/kg, down 43,000 VND/kg from the same period last year.
• Size 100 con/kg is priced at 88,000 VND/kg, with processors favoring smaller shrimp.
• A large-scale farmer in Can Tho reports that even with high-tech farming, selling is difficult and losses are likely for low-survival operations.
• FMC Chairman Ho Quoc Luc says H1 2026 saw export value recovery but profitability remains weak due to price competition and costs.
• The US market remains a focus but faces pressure from anti-dumping duties, countervailing duties, SIMP rules, and traceability requirements.
• Competitors Ecuador, India, and Indonesia benefit from large-scale farming and lower costs, putting Vietnamese shrimp at a disadvantage.
• FMC closed at 35,750 VND on June 30, 2026, down 0.42% with low volume of 3,500 shares.

What Happened

According to a July 1 report, whiteleg shrimp prices in the Mekong Delta have continued to decline sharply in recent days. A trader in Can Tho noted that large shrimp (30-50 con/kg) are now only about 97,000 VND/kg, while small shrimp (100 con/kg) fetch 88,000 VND/kg. Unlike previous years, large shrimp are losing value, and processors are buying cautiously, preferring smaller sizes. Farmer Bay Nghiep, who operates a 500-hectare high-tech farm, said prices have never been this low, with the same size shrimp selling at 140,000 VND/kg last year versus 97,000 VND/kg now. He noted that farmers with low survival rates will definitely lose money, and finding buyers is difficult.

Ho Quoc Luc, Chairman of Sao Ta Foods (FMC), commented that the Vietnamese shrimp industry has recovered in growth during the first half of 2026 but not in quality or profitability. Export turnover has increased, but enterprises face heavy pressure on selling prices, costs, competition, and trade barriers. He emphasized that value-added products remain a competitive advantage, particularly breaded, steamed, and ready-to-eat shrimp, which Ecuador and other competitors have not yet matched. The US market remains a key focus, but challenges include anti-dumping duties, countervailing duties, SIMP regulations, and environmental/labor controls.

Market Context

FMC shares closed at 35,750 VND on June 30, 2026, down 0.42% with very low volume of 3,500 shares, indicating limited investor interest amid sector headwinds. The broader seafood sector on HOSE has been under pressure from falling raw material prices and intense international competition. FMC’s stock has likely been range-bound as the market digests the persistent margin squeeze. The company’s focus on value-added products provides some insulation, but the overall price environment remains challenging.

Strategic Significance

For long-term investors, the key strategic question is whether FMC can maintain its competitive edge in value-added processing while navigating a low-price raw material environment. Chairman Luc’s emphasis on deep-processed shrimp (battered, steamed, ready-to-eat) suggests a differentiation strategy that may protect margins better than commodity exports. However, the structural disadvantage versus Ecuador and India in raw material costs means FMC must continuously improve efficiency and product mix. The US market’s regulatory hurdles add another layer of complexity. If FMC can sustain or grow its value-added share, it may emerge stronger when prices recover.

What to Watch

• Q2 2026 earnings release for FMC, expected in August, to see if margin compression is reflected in net profit.
• Monthly export data for Vietnamese shrimp to the US and EU, particularly value-added product volumes.
• Any changes in US anti-dumping or countervailing duty rates affecting Vietnamese shrimp.
• Raw material price trends in the Mekong Delta, especially for large sizes, as an indicator of supply-demand balance.
• Competitor capacity expansions in Ecuador and India that could further pressure global prices.