SHRIMP FARMING COST VERSUS SELLING PRICE, WHICH FACTOR IS MORE IMPORTANT?

One of the most important questions shrimp farmers should ask themselves

Should they focus on the selling price of shrimp (the price of harvested shrimp, the export price, etc.) or on the cost of producing the shrimp?

When talking with shrimp farmers and asking what would best help them improve profitability, most replied:

"WE NEED HIGHER SHRIMP PRICES."

However, the shrimp price is not as strongly correlated with profit as an efficient operating cost per kg of shrimp (because we cannot decide the shrimp price).

Real-world data

• Shrimp price: determines the profit margin in 20–30% of cases.
• Production cost: drives up to 70–80% of the profit margin in Vietnam's shrimp farming industry.

This shows that controlling production costs (such as the cost of feed, seed, biological products and pond environment management) is more important for securing sustainable profit.

Cost pressure in Vietnam

With the prices of global inputs rising, such as:

• Feed
• Disease-prevention medicines
• Biological products
• Operating energy

controlling production costs has become much more important than focusing only on the selling price.

An effective cost-management strategy

Good pond managers always focus on:

1. Optimising output and cost:
   • High productivity does not mean high profit if costs exceed the value earned.
2. Effective solutions:
   • Use quality biological products to reduce disease and environmental management costs.
   • Use optimal feed, ensuring a low feed conversion ratio (FCR).
   • Manage water quality, the microbial community and shrimp health throughout the crop.
   • Use pathogen-free seed.

In short: "the best profit" matters more than "the biggest harvest"!

Shrimp farmers in Vietnam need to build a sustainable business model that rides out swings in shrimp prices and input costs by optimising production efficiency.

Key point: it is not the selling price but production cost control that is the key to success!

Products featured

SOILMAX – clean water, big shrimp, no environmental worries

Comprehensive microbial solution for super-intensive ponds.

• Helps reduce pressure from unfavourable bacteria in the pond.
• Helps absorb toxic gases effectively.
• Helps prevent coin fungus.
• Helps clean liner slime.
• Helps control toxic algae and maintain a tea-coloured water.

MAX 4000 (new) – specific microbes that reduce NO₂

Balances the microbial community, optimises detoxification and pushes back NO₂ formation. Pack: 227 g.

• Helps balance the pond's microbial community with specific bacteria.
• Helps quickly reduce toxic NH₃ in the pond after 2 doses.
• Helps push back NO₂ formation by a further 20 days.
• Note: use from the start of the crop, alternating with SOILMAX, for the best results.

English text adapted from Than Vuong's original Vietnamese infographic.