Distribution Channel of Exported Whiteleg Shrimp in Khanh Hoa Province, Vietnam

Suggested Bibliographic Reference: Challenging New Frontiers in the Global Seafood Sector: Proceedings of the Eighteenth Biennial Conference of the International Institute of Fisheries Economics and Trade, July 11-15, 2016. Compiled by Stefani J. Evers and Ann L. Shriver. International Institute of Fisheries Economics and Trade (IIFET), Corvallis, 2016.Proceedings of the Eighteenth Biennial Conference of the International Institute of Fisheries Economics and Trade, held July 11-15, 2016 at Aberdeen Exhibition and Conference Center (AECC), Aberdeen, Scotland, UK.This study focuses on the benefit distribution among stakeholders in the value chain to evaluate the current status of white-leg shrimp in Khanh Hoa Province, Vietnam.Convenient sampling and face to face interview method were employed to solicit information from 100 farms, 10 middlemen and a group of exporters. Most of the farms are small size independent ones. There is an involvement of middlemen (middlemen type #1 and middlemen type # 2) in the chain. The distribution of shrimp materials by middlemen type #1 is based on shrimp size. If the size is within the range of 70 to 120 shrimps/kilogram, the middlemen type #1 distribute all to middlemen type #2 (18.9%); if the size is in the range of 120 to 200 shrimps per kilogram, they distribute to large hotels and supermarkets (22.6%); if the size is above 160 shrimps per kilogram, retailers are allocated 58.5%. Middlemen, type #2, possess a large amount of capital to supply middlemen type # 1 to cover operational expenses and to pay small farmers before harvest. The more capital middlemen type #2 have in hand, the higher their returns due to the level of guaranteed, consistent quality supply they receive. In order to grow shrimp and to attain a sustainable value chain for white-leg shrimp in a long run, there is a need to improve coordination among the market participants, between authorities and individuals; seek government intervention and build the image of Vietnam seafood in international markets by providing standardized products