Exports of pangasius show signs of slight recovery later this year

The Mekong Delta is the location of all pangasius cultivation, production, and processing activities take place, with 94% of the output being exported. 

Ms. To Tuong Lan, Deputy Chairman of the Vietnam Association of Seafood Export and Processing (VASEP), stated at the Conference on food safety of production, processing chain and Promotion of pangasius consumption on August 5 in Can Tho City that current orders for Vietnamese pangasius from key export markets such as the United States and China have been slow.

However, during the second quarter of 2023, exports of pangasius have shown signs of activity. Specifically, pangasius exports to the British market increased by 3%, while exports to Saudi Arabia surpassed the 52% mark. This is the first time that a country from Western Asia has entered the top 10 list of Vietnam's largest pangasius exporters, as a result of the market's general difficulties. This demonstrates that pangasius producers are working to increase market consumption and penetration. 

Fresh, frozen, and desiccated pangasius accounted for 11 to 14% of exports; frozen pangasius fillet accounted for 85 to 86% of exports; and processed pangasius comprised 1 to 3% of exports.

In addition, Ms. Lan cited US Customs data indicating that pangasius exports to this country increased from April to May 2023, reaching USD 7.1 to 7.7 million. Compared to the preceding months, the market trend has moderately improved.

Ms. Lan forecasts that the United States and a few other nations will experience a modest recovery in the final months of the year, as inflation shows signs of moderating. This is also the time of year when retailers in the world's foremost nation stock up for the holiday season. Moreover, pangasius stocks in other nations are declining. In addition, the price of pangasius feed is falling, allowing producers to stock up in the final months of the year in preparation for the next harvest.

Ms. To Tuong Lan predicts that the export volume of pangasius from Vietnam will decrease by 15% this year, to approximately 2 billion US dollars.

In the early days of August, the inspection team of the US Food Safety and Quarantine Agency - FSIS (US Department of Agriculture) will visit localities and businesses exporting pangasius to the United States in order to evaluate the food safety control system.

Deputy Minister of Agriculture and Rural Development Tran Thanh Nam determined that this is a prerequisite and an opportunity for pangasius enterprises to improve their agricultural areas and production processes, thereby promoting the "unique" advantages of Vietnamese pangasius. 

Consequently, the Deputy Minister suggested that enterprises and municipalities prepare adequately. Examining the work performed in the past to ensure product safety and ensure that it satisfies the requirements of the inspection team. To intensify inspection and examination in accordance with international requirements.

By the end of the year, the pangasius industry must identify and expand potential markets, such as China, the United States, Japan, and Korea, in order to reconstruct the damaged supply chain. To control food safety and assure supply, the consolidation of the pangasius industry chain and businesses sustaining the supply must be associated with farming areas and ponds in the form of an association with cooperatives, cooperative groups, and businesses.

Deputy Minister Nam simultaneously directed the Department of Quality, Processing, and Market Development to devise a plan for deploying the point model of commodity supply chains. Ensure food safety from breeding stock to production area to preliminary processing and processing in key areas for pangasius farming, such as Dong Thap, An Giang, and Can Tho, and have a replication strategy. Localities in the Mekong Delta must also explicitly define their responsibilities, based on supply and demand in agricultural regions, in order to develop a plan to manage seed facilities to assure food quality and safety along the pangasius supply chain.