Pangasius brings benefits for exporters

Exported pangasius prices may rise in the last months of the year.

Until October 6, 2016, the price of pangasius catfish in the Mekong Delta has increased by 2,500 – 3,500 vnd/ kg, up to 22,000 – 22,500 vnd/ kg. This is the highest price since the beginning of 2016. At this price, producers and exporters hope to improve and compensate for their costs and the export price should increase more by the end of this year.

In the first 9 months of 2016, the total area of the Mekong Delta for fish farming is estimated at 5,146 ha, decreased by 2.3 % in comparison with the same period last year. The total output is estimated at 861,000 tons, rising by 2.5% compared to the same period in the preceding year thanks to significantly increasing yields in certain provinces such as Dong Thap: 285,500 tons (up by 6.8%), Can Tho: 118,000 tons (up by 27.2%)

During the past 8 months, the price of pangasius in the Mekong Delta has not been stable. e.g. in August, the price fell to the floor price of 18,500 – 19,000 vnd/ kg, the lowest price in 5 recent years. Both producers and exporters faced difficulties due to high farming costs meanwhile the export price stood still or decreased in numerous big markets.

From the reflection by the large pangasius catfish exporters, the need for pangasius by big importers such as US, EU, Mexico, Brazil…have been rising significantly because the trading partners have to prepare for Christmas and the holidays. Some traders have accelerated various products for large orders valued at 5 – 20% compared to the previous period.

In addition, in the first haft of the year, the price of pangasius in the Mekong Delta has been reversed and unstable because Chinese importers bought masses of big fish in a short time and suddenly stopped trading. They even bought various kinds of fish without clear purpose and rules such as over 1kg/ fish, 700 gram/fish or catfish stomach. This led to the price chaos in the area. Some farming households kept fish to sell to Chinese traders with the higher price than the price that producers offered. Thus, fish used for production and export was really in shortage.

According to the General Department of Customs’ statistics, by the end of August 2016, the total export value of pangasius to the China market has increased by 72% compared to the same period of the previous year. However, the export growth to the market is forecast to reduce gradually because the amount of pangasius in stock in China is high. Therefore, traders should be more careful to push the output of big fish so that we could avoid a price crisis and big fish in excess to be repeated as in the past time.

As evaluated by experts, the needs of some huge markets will certainly increase from now to the end of the year, foreseeing the export price of pangasius rising in the coming quarter. Nevertheless, both traders and farming households should take consideration of the yield of fish, avoiding farming in mass instead of considering the needs and contracts signed with exporters.