Sutchi pangasius farming reduced by 55%, worries growing regarding lack of raw materials

Scene of the conference. Photo: Minh Long

Exports reached over US$1.5 billion

According to the Directorate of Fisheries (MARD), in 2021, the seafood industry in general and Sutchi pangasius, in particular, will continue to face many difficulties and challenges. The decline in price of Sutchi pangasius’ raw material has lasted since 2019, affecting production investment. The Covid-19 pandemic has severely affected the production and consumption chain of Sutchi pangasius.

In the Mekong Delta provinces, the period of social distancing extending from July 2021 to September 2021 has disrupted the production and transportation of seed, aquatic feed and raw fish. Many farming establishments are lacking harvesters, as are a number of aquatic feed factories and Sutchi pangasius processing factories have had to suspend operations or reduce capacity.

Furthermore, production costs have increased, leading to a potential shortage of raw materials for export processing, international shipping is interrupted and consumption of products is low.

At the online conference, "Solutions to develop Sutchi pangasius farming in the last months of 2021 and 2022", Mr. Nhu Van Can - Director of the Aquaculture Department (Directorate of Fisheries), said, “according to statistics, there were 106 Sutchi pangasius processing factories currently registered for export in 5 provinces, with an estimated number of 190 thousand employees.”

As of early September 2021, 52 out of 106 Sutchi pangasius processing factories in five provinces, An Giang, Dong Thap, Can Tho, Hau Giang and Vinh Long, had to suspend operations (accounting for 49% of workers). The number of employees who had to quit their jobs due to the pandemic is over 70%.

Due to the lack of workers and the division of shifts to preventing pandemic, the total capacity of factories is only about 30-40% compared to the time before social distancing (early July 2021).

The provinces that have the largest number of enterprises that have stopped production are Can Tho and Tien Giang. For factories that are part-time, the number of workers that can be mobilized is only 20-30%. as a result, labor productivity has dropped sharply.

After implementing Resolution 128/NQ-CP, which aims to "Safely adapt and effectively control the Covid-19 pandemic", production activities at processing plants have basically been restored.

"Currently, most businesses are still focusing on buying large fish, from 900 gr - 1.3 kg or more, with prices from VND23,500 - 24,000/kg. The Sutchi pangasius output of the whole year reached about 1.5 million tons, equal to 100% of the same period in 2020. Sutchi pangasius export turnover was estimated at over US$1.5 billion,” Mr. Can said.

Worried about the lack of raw materials

In 2022, the Sutchi pangasius industry is expected to have a farming area of ​​over 5,200ha in the year. The output of Sutchi pangasius production is expected to reach over 1.7 million tons and export turnover to reach over US$1.6 billion.

Evaluating the situation of 2022, Mr. Nhu Van Can said, “the area of ​​Sutchi pangasius farming in July-September 2021 decreased by about 30-55% compared to the same period in 2020. Therefore, from January to March in 2022, it is a possibility that there may be a shortage of raw materials for processing.”

Sutchi pangasius industry sets an export target of reaching over US$1.6 billion in 2022. Photo: N.Thanh

In addition, the General Department of China Customs has issued Order No. 248, regulating the registration of enterprises exporting agricultural products and foods to China. As well as Order No. 249, on measures to manage and supervise the safety of imported and exported food of the General Department of China Customs.

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

Notably, the representative of the Directorate of Fisheries said, “according to the predictions of scientists, the Covid-19 pandemic may continue to develop complexly in 2022 and directly affect logistics activities, and indirectly to Sutchi pangasius production and trading activities.”

“For our country, pandemic control has initially achieved results. Localities, people and businesses have gradually adapted in the new situation. The pandemic created challenges but also an opportunity for Sutchi pangasius producers to adjust the market structure in the coming period”.

Luan noted that it was necessary to closely monitor market developments to meet the export requirements of importing countries, to be ready to export as soon as the opportunity arises and at the same time diversify products for consumption, considering factors such as suitable weights for family meals following each market segment.

From a business perspective, Mr. Duong Nghia Quoc, Chairman of the Vietnam Sutchi Pangasius Association, said “in case the export market faces difficulties, it needs to focus on building the domestic market. Recently, a number of businesses have participated in building the domestic market, but they’ve been limited when compared to their potential.