Area of pangasius farming decreases, concerns about lack of raw materials for export

	Sutchi pangasius farming reduced by 55%, worries growing regarding lack of raw materials
	Pangasius exports to the US grow strongly
	Enterprises need to redirect pangasius exports

Conference overview. Photo: Minh Long

Exports reached more than US$1.5 billion

According to the Directorate of Fisheries (MARD), in 2021, the seafood industry in general and the pangasius industry in particular faced many difficulties and challenges. The low price of pangasius raw materials lasted since 2019, affecting production investment. The Covid-19 pandemic has severely impacted the pangasius production and consumption chain.

In the Mekong Delta provinces, the social distancing measures from July to September 2021 disrupted production and transportation of seed, food, and raw fish. Many farming establishments lack harvesters; some food factories and pangasius processing factories had to temporarily stop working or reduce their capacity.

Additionally, production costs increased, leading to the risk of shortages of raw materials for export processing; interruption of international shipping; and difficulties in consumption.

At the online conference "Solutions to develop pangasius farming in the last months of 2021 and 2022" taking place on the afternoon of December 9, 2021, Nhu Van Can, Director of the Aquaculture Department (Directorate of Fisheries) said that according to statistics, there were 106 pangasius processing factories registered for export in five provinces with an estimated number of employees of 190,000 people.

As of early September 2021, 52 out of 106 pangasius processing factories in the five provinces of An Giang, Dong Thap, Can Tho, Hau Giang, and Vinh Long had to suspend operations (accounting for 49%); the number of unemployed workers due to the pandemic was more than 70%.

Owing to the lack of workers and the need to divide shifts to prevent the pandemic, the total capacity of factories was only about 30-40% compared to before the lockdown (early July 2021).

The provinces with the largest number of enterprises stopping production were Can Tho and Tien Giang. For factories that are marginally producing, the number of workers that can be mobilized was only 20-30%, labor productivity dropped sharply.

After implementing Resolution 128/NQ-CP promulgating the temporary regulation "Safely adapting, flexibly, effectively controlling the Covid-19 pandemic", production activities at processing plants have basically been restored.

"Currently, most businesses are focusing on buying big-size fish from 900g - 1.3kg or more with prices from VND23,500 - 24,000/kg. Pangasius production for the whole year is about 1.5 million tons, equal to 100% compared to the same period in 2020. Pangasius export turnover is estimated at more than US$1.5 billion,” said Can.

Concerning lack of raw materials for processing

It is expected that the pangasius farming area will reach more than 5,200 ha; commercial pangasius production will gain more than 1.7 million tons and export turnover will reach more than US$1.6 billion in 2022.

Assessing the situation of 2022, Can said that the area of pangasius farming in July-September 2021 decreased by about 30-55% compared to the same period in 2020. Therefore, in January-March 2022, the shortage of raw materials for processing may occur.

The pangasius industry sets an export target of more than US$1.6 billion in 2022. Photo: N.Thanh

Additionally, the General Administration of Customs of China issued Order No. 248 on registration regulations for enterprises exporting agricultural and food products to China, and Order No. 249 on import and export food safety management and supervision measures of the China’s General Administration of Customs.

These orders will take effect from January 1, 2022 and may affect businesses producing and trading frozen seafood, including pangasius.

Notably, the representative of the Directorate of Fisheries said, according to scientists' predictions, the Covid-19 pandemic might develop in 2022, directly affect logistics activities and indirectly pangasius production and trading activities.

“For our country, pandemic control has achieved initial results. Localities, people, and businesses have gradually adapted to the new situation. The pandemic has created not only challenges but also opportunities for pangasius producers to adjust the market structure in the future,” said Tran Dinh Luan, Director General of the Directorate of Fisheries.

Luan noted that it is necessary to closely monitor market developments to meet the export requirements of importing countries, ready to export as soon as the opportunity arises; simultaneously, diversify products in the direction of producing convenient products for consumption, suitable for family meals according to each market segment.

From a business perspective, Duong Nghia Quoc, Chairman of the Vietnam Pangasius Association said that in case the export market faced difficulties, it was necessary to focus on building the domestic market. Recently, several businesses have participated in building the domestic market, but this action is limited compared to the potential.