Mixed reports about the pangasius industry situation on supply and exports from Viet Nam throughout 2011 make it difficult to measure the current scenario. What remains clear, however, is the fact that pangasius continues to be popular in producing countries in Asia. In general imports slowed down during the third quarter in Europe but imports to the US increased.

Viet Nam supply shortage to continue in 2012

VASEP reported serious supply problems and floods faced the Vietnamese industry in 2011, forcing nearly 70% of all pangasius catfish processing plants in the Mekong Delta to shut down.

In the third quarter of 2011, floods caused serious problems for farmers in feeding the fish, while their ponds were contaminated in Dong Thap and An Giang provinces. Prices dropped again in December to about USD 1.20/kg and some industry sources suspect that local exporters and processors were forcing farmers to sell at low prices. VASEP meanwhile attributed the lack of good quality pangasius to the price fall.

The supply shortage is expected to continue into 2012. VASEP recently quoted continued growth in exports of pangasius, which VASEP estimates could reach USD 2 billion in 2012.

Markets

Europe

Third quarter imports of pangasius in 2011 by European countries declined nearly 7% from a year ago reaching 158 209 tonnes, but gained 8% in value reaching USD 438 million. Higher imports, however, came from China and Bangladesh.

Spain remained the single largest importer in the EU for pangasius. Germany and Poland, imported less while greater supplies went to the Netherlands and Italy. Other countries that increased their imports of pangasius fillet from Viet Nam were Cyprus, Czech Republic, Denmark, Greece, France and Portugal.

USA

The drop of exports to Europe was compensated for by higher demand from the USA, as reflected by increased imports into the US. Close to 98% of total US imports of catfish during January-September 2011 comprised pangasius catfish while frozen catfish imports were higher by 49% during this period. Average import prices of frozen pangasius fillet increased by 16% to USD 3.55/kg from a year ago.

The economic crisis and increased production costs have caused supplies of domestically farmed channel catfish to fall nearly 23% in September 2011 from the same month in 2010. The average price for frozen product reached USD 3.72, about 48% up from 2010.

Asia

The demand in India continues to grow as imports are reportedly taking place on a regular basis. During the 2010/2011 fiscal year, India imported USD 3.69 million worth of frozen fish fillet from Viet Nam.

Demand for pangasius in the Philippines is also growing; this is reflected in good sales during various local trade fairs. The Philippines imported a total of 7 200 tonnes of frozen fish fillet from Viet Nam in 2010.

Outlook

The supply shortage of pangasius is expected to spill over to 2012 with many farmers in Viet Nam turning away from their businesses.  As a result prices may firm up in the short term. Supplies will improve in India and Bangladesh during the current dry season and more of these will enter the domestic markets.