Pangasius - March 2015

01/03/2015

Pangasius production in Viet Nam steady but rising in other producing countries on domestic demand.

During the period January to September 2014 approximately 340 000 tonnes of frozen pangasius fillet entered markets in more than 70 countries, a marginal decline from the same period in 2013. However, imports increased into selected markets in the European Union, Latin America and Asia. The world’s largest producer, Viet Nam, reported a steady production in 2014 at 1.1 to 1.2 million tonnes. Production continues to rise in other producing countries where a substantial amount enters the domestic markets.

Viet Nam

Production of pangasius in 2015 is forecast to remain stable at 1.1 – 1.2 million tonnes, according to the Directorate of Fisheries under Ministry of Agriculture and Rural Development. The Ministry also forecasts that exports of pangasius in 2015 will reach USD 1.75 - 1.85 billion. In the first 11 months of 2014, pangasius exports were valued at USD 1.6 billion up 0.6% from the same period in 2013, the Vietnam Association of Seafood Exporters and Producers (VASEP) report.  Exports declined to most markets, in particular the EU and the USA, while there were higher exports to Asia, Latin America and Saudi Arabia.

Vietnamese authorities have passed a decree making it compulsory for commercial fish farms to apply for the VietGAP Standard or another international standard certification by 31 December 2015. VASEP forecasts that 30% of aquaculture installations will be VietGAP certified 2015 and will reach 80% by 2020. The Vietnamese government considers this certification crucial to minimize the negative impacts of aquaculture, to develop sustainable farming, enhance product value and promote exports.

In compliance with Vietnamese Law commercial fish farms must be located in planning areas approved by the People’s Committee in each locality and the extent of fish farms and their output must be registered with local managing agencies. The new decree also includes detailed regulations on quality and food safety of processed Vietnamese catfish products and stipulates that raw pangasius for processing must be grown on farms that adhere to the regulations.

In addition, processed pangasius must comply with regulations on seafood quality and food safety set by Viet Nam and other importing markets. In the case of frozen processed pangasius fillets, the chemicals and additives that are allowed are listed by Vietnamese law and other importing countries and processors are urged to use only those that are permitted. Fingerlings, feed, veterinary drugs, biological products, micro-organisms and chemical products are also specified under Vietnamese law and producers and processors must use those that are approved.

In a related development, the regulations on ice and moisture content in tra fish (pangasius) fillets for export that were to have taken effect in January 2015 has been delayed to early 2016 by the government. Previously, some pangasius exporters in An Giang Province filed a petition asking the government to delay the effective date of the decree by a year. Although exporters acknowledge that the new rule is intended to increase the quality, they argue that a pilot scheme to measure the market reaction should have been implemented first.

USA

Total catfish imports during the third quarter of 2014 declined by 7.6% in volume from 2013 according to data from the National Marine Fisheries Service (NMFS). Frozen pangasius fillet imports, which make up 94% of total catfish declined by 8.7%, are the primary reason for the overall decline. Imports of frozen Ictalurus fillet, however, were higher by 5.5% during the period under review. Pangasius frozen fillet supplies fell by 8.7% from the leading supplier Viet Nam but were higher from Bangladesh and China, although the table below does not show these imports. China was the sole supplier of frozenIctalurus fillets.

EU

Demand for pangasius in the EU-28 continued to slow during the third quarter of 2014 with a close to 6% decline in imports from the largest supplier, Viet Nam. A total of 98 538 tonnes of frozen pangasius fillet was imported during this period. The largest markets are Spain, the Netherlands, Germany and Italy. Imports by Spain and Italy increased by 5% and 0.5% respectively while imports declined in most other EU countries indicating demand is waning. Of note are the increased imports from Bangladesh during this period. According to Eurostat, a total of 2 421 tonnes of whole frozen pangasius was imported into the EU-28 with nearly 50% from Viet Nam, followed by Indonesia, Thailand and Bangladesh.  

Asia

Demand for frozen pangasius fillet strengthened during the third quarter of 2014. Both the household and catering sectors are consumers of this product. Approximately 50 000 tonnes of frozen pangasius fillets were imported based on estimates from national statistics. This translates into an approximately 60% increase from the January – June period this year. Thailand, China, Taiwan Province of China, India, Japan and the Republic of Korea imported between 1.35% and 448% more than in the same period in 2013.

No imports were recorded by Indonesia because of stringent government import regulations to ensure the quality of imported fish as well as to encourage consumption of local fish. This is also due to the boom in local pangasius farming with strong support from the government and growing demand in the local market. According to the Indonesian Catfish Entrepreneurs Association (APCI), the country’s pangasius industry has successfully substituted imported Vietnamese product, which used to dominate the local fillet market. The local industry now takes around a 70% share of the local fillet market, supplying around 700 tonnes per month to retailers. Local pangasius production is estimated to be around 500 000-600 000 tonnes annually, which the government hope will increase to reach 1.1 million tonnes in 2023.

Latin America

The largest importers of pangasius fillet in this region during January – September 2014 were Mexico, Brazil and Colombia accounting for 95% of the nearly 83 000 tonnes imported. Imports increased by 4.9%, 87% and 27% respectively by these countries from a year ago.

However, in a recent development,the Brazilian government temporary suspended Viet Nam pangasius import licenses for sanitary reasons and lack of phyto-sanitary controls.

Outlook

Overall demand is expected to remain firm with significant imports taking in most markets globally.

The slightly weak USA market may pick up as Lent approaches while in Asia demand for locally produced pangasius is likely to strengthen with the upcoming Chinese Lunar New Year.

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