Export prices are high, but businesses are worried about the lack of pangasius raw materials

Processing pangasius for export in the Mekong Delta. Photo: Cong Mao

Export prices to the US record a new peak

According to the assessment of businesses, pangasius exports to the US market are growing well. After the final results of the anti-dumping tax POR17 were announced, pangasius businesses that are not subject to tax are boosting exports to this market.

By the end of March 2022, the total value of pangasius exports to the US reached more than US$160 million, up 123%. Currently, record inflation is taking place in the US due to broken supply chains and the impact of the Ukraine crisis, skyrocketing prices, and demand for essential necessities, including food and seafood. The near future is a good opportunity for businesses to export frozen pangasius to the US market.

According to Ms. Ta Ha, pangasius market expert of the Vietnam Association of Seafood Exporters and Producers (VASEP), after the price of raw pangasius in the Mekong Delta peaked at the end of the first quarter of 2022, the average export price of frozen pangasius fillets to markets also increased sharply.

The price of raw fish increased sharply, causing the average export price of frozen pangasius fillets to increase from US$3.2 to 3.4/kg. Of which, the average export price to the US market was the highest and increased sharply to more than US$4.5/kg. This is a price higher than the peak of 2019.

The shipments of pangasius processed and transported to the US during this time were mainly frozen pangasius fillets with large sizes of 7-9 oz; 8 - 10 oz and 10 - 12 oz. Meanwhile, frozen commercial fish of 3 - 5 oz and 5-7 oz sizes are in short supply.

The average export price of frozen pangasius fillets to the Chinese market is also much higher than last year, ranging from US$2.4 to US$3.25/kg (the same period last year was at US$1.9 – US$2.7).

The price of frozen fish fillets for export to the EU is also positive, ranging from US$2.9 to US$3.45/kg. Of which, export prices to the Netherlands, Germany, Belgium and Spain also increased and remained stable compared to the same period in 2021.

Afraid of lack of ingredients

Ms Ta Ha said the world pangasius market is moving in a good direction, orders are increasing, but raw fish is lacking.

According to data from the General Department of Fisheries, the new farming area of ​​pangasius is only 94% compared to the same period last year. Harvest output reached 350,000 tons, up 8.8% over the same period last year. In some key pangasius producing localities such as Dong Thap, the pangasius farming area is only 94.6%; Vinh Long's intensive pangasius farming area also decreased by 22.9% over the same period last year.

It is forecast that the shortage of raw materials will continue until at least the end of the second quarter of 2022. Currently, the price of pangasius size 0.7 - 0.8 kg/head fluctuates at VND31,000 - 32,500/kg; size 1 - 1.2 kg/head, ranging from VND32,000 to 34,500/kg. Thus, over the same period, the price of raw pangasius increased from VND8,000 to 10,000/kg over the same period last year and increased by about 20% compared to the end of 2021.

The price of raw pangasius has increased in recent years, giving farmers motivation to return to farming, but the cost of feed, seed, and input materials has also increased as quickly as the selling price of fish.

Therefore, so far, both farmers and businesses have not made high profits. In return, the output market factor is positive in the coming quarters.

The war in Ukraine has not come to the end yet, so this is also a significant influence and it is difficult to orient the market, so both exporters and farmers need to carefully calculate and balance the area and output feed with market fluctuations to avoid a repeat of the surplus crisis like a few years ago.