Pangasisus - February 2011

01/02/2011

Imports into all major markets still show growth, with supplies coming from other sources within the region that are actively farming pangasius, as well as from Viet Nam.

Viet Nam likely to set minimum price for pangasius exports for 2011 

The pangasius industry in Viet Nam continues to face negative publicity, yet demand for this product has not decreased in major markets including in Asia. Imports into all major markets still show growth, with supplies coming from other sources within the region that are actively farming pangasius, as well as from Viet Nam. Pangasius exports from Viet Nam during January to October 2010 were 6.7% higher in volume and 2.4% in value compared with 2009. Exports in 2011 are expected to slide back as a result of raw material shortage. Prices are forecast to rise in 2011, as the cost of raw material is likely to escalate along with bank loan interest rates.

Europe 

The EU, which is the largest market for pangasius, imported nearly 3% less from January to October 2010 compared with the previous year. Spain, the biggest importer of pangasius in the EU imported nearly 44 000 tonnes followed by Germany, the Netherlands and Poland. The UK imported about 7 000 tonnes of fillet in the first nine months of 2010. Prices offered by EU importers for Vietnamese products however, were low and exporters have been holding on to stocks while waiting for the decision on pangasius inspection in the USA The supply shortage is expected to continue until the new harvest becomes available in Viet Nam later in 2011. Following the inclusion and subsequent down-listing of pangasius on World Wildlife Fund for Nature’s (WWF) red list, the WWF and Viet Nam have signed a Memorandum of Understanding (MOU) to recognize both sides’ commitment in ensuring that tra (pangasius) fish is globally recognised as a sustainable aquaculture product. Under the MOU, both parties will assist pangasius farmers to implement the Aquaculture Stewardship Council (ASC) standards.

USA 

The USA imported close to 50 000 tonnes of catfish during the first ten months of 2010. Pangasius made up 91%, which also contributed to the growth in total catfish imports. In contrast to 2009, supplies from Thailand and Cambodia declined in 2010. Meanwhile the decision on whether or not the inspection of pangasius imports would be taken over by the US Department of Agriculture from the FDA, is expected to be made in January 2011. This could affect future imports of pangasius.


Imports of channel catfish (Ictalurus sp.), which account for 9% of total US catfish imports declined by 32%. China supplies the most of this product and exports were 28% lower in 2010 than the same period in 2009. Asia Supplies of pangasius to Asian markets are now available from countries in the region other than Viet Nam. Production in Indonesia, Malaysia, and the Philippines is also absorbed by their domestic markets. Just as in most South East Asian countries, the Indonesian government is actively promoting fish consumption by domestic consumers, including a catfish festival held in Jakarta in June. At the same time, the Ministry of Marine Affairs and Fisheries (MMAF) Indonesia has passed a new regulation for fishery imports. The Ministerial Regulation No. 17/2010 requires imported fishery products to be accompanied by health and country of origin certificates from the exporting country’s competent authority and sets the maximum glazing allowed for frozen products (mostly fillet) at 20%. Indonesia imported 35% more fillet from Viet Nam, Malaysia and Thailand. The Department of Trade and Industry (DTI) in the Philippines has made the development of the pangasius catfish industry a priority in attracting more investment and creating job opportunities. A working visit to Viet Nam aimed at increasing knowledge about the pangasius industry and its value-chain was undertaken. The government has also intensified efforts to promote locally farmed pangasius in the domestic market by officially introducing it to local wet markets where the public was briefed about the pangasius development project.

A pilot project to introduce the farming of tilapia and pangasius in Pakistan is set to be launched for the first time in fish farms spread over 20 000 acres in Alipur Chattha, Gujranwala according to sources from the Fisheries Development Board (FDB). Pakistan currently imports about 1 700 tonnes of rohu (a species in the carp family) and pangasius from Viet Nam, Thailand and Myanmar. Both pangasius and rohu are in great demand in Pakistan and their market share is expected to grow in future.

Other markets 

With the increasing imports of pangasius (mainly from Viet Nam) in many markets, several producing countries are also taking precautions to protect their domestic industry. Besides Indonesia, Brazil has suspended imports of pangasius until quality and safety checks have been undertaken. Pangasius is seen to be in competition with the Brazilian carp. From January to September 2010, Brazil imported 8 451 tonnes of pangasius from Viet Nam. Although prices offered by Brazil are not attractive yet, it remains a potential market. Meanwhile, demand for pangasius fillets is increasing in the Chilean market as a result of regular supply and competitive prices. Pangasius is thus replacing hake and pompano as a preferred whitefish product. Imports of pangasius are also increasing to Mexico where 31% more pangasius was obtained this year.

Outlook 

Although pangasius has been moved from the WWF’s red list to the orange list ("moving to certification"), the negative press facing the fish and competition from the neighbouring countries will continue to present challenges for Viet Nam. In addition, rising costs and falling profit margins may result in lower production and exports. In January 2011, the decision on the US Farm Bill that could transfer the responsibility of inspecting pangasius from the FDA to the Department of Agriculture will put further pressure on the pangasius industry in Viet Nam.

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