Demand continues to pick up in non-major markets, major producer lays out five year plan.

With the largest producing country Viet Nam planning for higher production along with steady production from other producers, supplies of pangasius will remain stable. During the first half of 2014, frozen pangasius fillet imports by more than 70 countries increased by 77% compared with the first half of 2013. Though the USA, the single largest market for frozen pangasius fillets, imported 5% less, imports continued to increase into markets in the EU, Latin America and Asia.

Viet Nam

In a move to strengthen the industry, a five year plan has been approved by the Ministry of Agriculture and Rural Development (MARD) to increase the production of pangasius to 1.6 million tonnes by 2020 and up exports to 650 000 tonnes. The plan, to be executed by 2015, calls for expanding infrastructure, selecting higher quality strains and improving the overall production chain. In a related development, the MARD has declared that as of June 2014, frozen pangasius fillets for exports must not contain moisture exceeding 83% while glazing is limited to 10%. The aim is to ensure that the quality of products is maintained as the industry strives to revive the market.

Viet Nam is also planning to develop a sustainable supply chain in order to increase exports to the EU. At present, pangasius is exported to 150 countries and territories totalling a revenue of more than USD 1.8 billion a year, of which the EU accounts for 21% of (Source: Vietnam Association of Seafood Exporters and Producers). Exports to the EU experienced a 9% decline during the first half of 2014 compared with the same period last year, which is considered to be mainly attributed to the EU’s economic slump. To revive exports to the EU, VASEP recommends working to build a national brand for the product and improved organizations of distribution activities. Furthermore, it is also proposed that Viet Nam defines the export price for pangasius via public auctions with buyers.

Meanwhile, the United States Department of Commerce released its preliminary tariffs on Vietnamese frozen pangasius fillet imports. The tariffs have been set at a ‘zero’ to USD 2.39 (EUR 1.75) per kg on all fillets exported from August 2012 through July 2013. The new duties will take effect when the final decision is made. Relevant parties will have 120  days to reply before a final determination is issued.

Following the lifting of the Russian import ban on 13 companies in Viet Nam (see section on the Russian Federation below) strong growth in exports to The Russian Federation is predicted for the second half of the year. During the first four months of 2014, Viet Nam's exports  to  the Russian Federation  increased  by 14%  compared  with  the  same  period  of  2013, reaching  USD 29 million in value. The Russian Federation is an attractive market for Viet Nam because of its tax incentives and strong consumption.

USA

During the first half of 2014, frozen catfish fillet imports decreased marginally (-7%) from a year ago due to tight supply from the major producer, Viet Nam. Though not reflected in the tabel below, it should be noted that for frozen pangasius fillets, there were 16 tonnes and 69 tonnes imported from Bangladesh and China respectively.

Aside from pangasius fillet imports, nearly 4 100 tonnes of frozen Ictalurus sp catfish fillets were also imported, a growth of 11% from the same period in 2013. 

EU

During the first half of 2014, imports of frozen pangasius fillets into the EU declined by nearly 10% from the same period in 2013, continuing the downhill trend from the first quarter of 2014. Imports into most EU member countries declined including the leading importers; Spain, the Netherlands and Germany. On the other hand, imports were higher into several other countries, namely the UK, Italy, Slovenia, Cyprus, Croatia and Malta.

India

During the first half of 2014, India imported approximately 4 000 tonnes of frozen basa fillets from Viet Nam (valued at USD 6.5 million), continuing their positive import trend from the first quarter. Aside from the local catering sector which is the main users of this product, Abad Fisheries, one of India’s leading seafood exporters, is entering the value added market with a range of products including breaded items targetting consumers in the middle class and above.

Hong Kong SAR

Hong Kong SAR imported close to 8 000 tonnes of frozen pangasius fillets from Viet Nam during the first half of 2014. Seafood consumers there will now have access to ASC certified fish in supermarkets following Market Place by Jasons’ introduction of ASC labeled responsibly farmed pangasius in their stores. The NBM pangasius fillets (454 g) is a frozen product farmed and supplied by the ASC certified An My Fish JSB farm in Viet Nam. There are currently 44 pangasius farms certified against the ASC standard and four more farms are under assessment. ASC certified seafood is growing in popularity across Hong Kong SAR and Asia.

The Russian Federation

The Russian Federation imported roughly 6 000 tonnes of frozen pangasius fillets from Viet Nam in 2013. In early 2014, The Russian Federation ceased imports of several Vietnamese seafood products, including tra, basa fish and frozen shrimp procuts, for failing to meet food safely requirements. The regulation took effect from 31 January 2014, but was recently lifted halfway through the year, when both countries agreed to review the ban and update the exchange of information in order to resume trade.

Brazil

Between January and August 2014, Brazil imported about 27 000 tonnes of frozen pangasius fillets from Viet Nam, a significant increase of 88% more than compared with the same period last year. However, reporting incidences of lack of sanitary and phyto-sanitary controls, Brazil is temporarily suspending pangasius import licences. The news was confirmed by Argentina's Chamber of Fish Processing Plants Exporters, which reported that Brazil will stop importing about 10 000 containers of Vietnamese pangasius per year.  The Brazilian aquaculture industry is considering increasing the production of catfish domestically in order to fill the void.

A veterinary doctor from the technical team in charge of the General Coordination of Fishing and Aquaculture Sanitary of the Monitoring and Control Secretariat in Brazil confirmed that "the issuance of new licenses to import aquatic animals and their aquaculture and/or fishing products originating in Viet Nam has been banned since 22 September, 2014." He added that "import licenses that have already been issued will not be encompassed in the restriction and can be used until their validity expires."

Outlook

The market will likely remain firm with good supplies from Viet Nam and other producers. On the demand side, sales will remain strong in non-major markets.