Pangasius exports can achieve record this year

Pangasius exports can achieve record this year

As exports increase, pangasius turnover in 2022 could reach a record of US$2.5 billion to US$2.6 billion, 56% higher than in 2021.
Update: (11/15/2022)

According to the Vietnam Association of Seafood Processing and Export (VASEP), Pangasius exports in the first eight months reached US$1.8 billion, and are expected to reach more than US$2 billion at the end of September, an optimistic figure for businesses in this industry.

According to Ms. Le Hang, Deputy Director of VASEP training center, Pangasius exports in the last three months have decreased continuously, gradually falling from the peak of US$310 million in April, but have tended to recover again from August.

"Particularly in August, Pangasius exports reached US$195 million, increased slightly compared to July and up 123% compared to the same period in 2021. However, this growth rate does not reflect a positive trend because August 2021 is the time when the peak of the pandemic, the exports were deeply reduced, " Ms. Le Hang said

In August, Pangasius exports to many markets had a positive signal, with a higher trend compared to July. In particular, exports to China were 37% higher than the previous month, reaching nearly US$61 million, nearly double the export sales to the US market. It is forecast that Pangasius exports to China will continue to be more positive in the coming months.

Besides, markets such as Brazil, Thailand, Colombia, Japan, and Malaysia tend to increase pangasius imports in August. However, Pangasius exports to some markets slowed down in August. Mexico fell 28%, the UK decreased by 17%, Canada decreased by 35%, Australia fell 13%, and the EU decreased by 10%.

Pangasius exports to the US recovered slightly, up 4% compared to the previous month, but sales are still quite modest, only reaching US$33 million. Pangasius exports to this market will be more positive in September and October as the inventory decreases and the import demand for service at the end of the year and the new year increases.

Moreover, the forecast of inflation in the US continues to be high in the last months of the year, which will cause the country's food and aquatic consumption to move to affordable products like pangasius.

A good signal for Vietnamese pangasius exporting enterprises, the US Department of Commerce (DOC) has issued a final conclusion regarding the period from August 1, 2020 to July 31, 2021 for Vietnamese pangasius. Accordingly, the DOC has kept the anti-dumping tax applied to each company based on the results of the last reviews. Therefore, this decision does not affect the exports of pangasius to the US this year.

Despite the taxation since 2003, many businesses producing and exporting pangasius have maintained the anti-dumping tax rate of 0.00 USD/kg through reviews to continue exporting to large markets like the United States.

In addition, the US Food Inspection and Safety Agency, under the US Department of Agriculture, has recognized six Vietnamese pangasius processing plants that are allowed to export to this market. Therefore, Vietnam has 19 pangasius factories recognized to be eligible for export to the US.

The average price of frozen pangasius exports in August 2022 reached US$2.81/kg, the lowest level in the past six months. In particular, the price of exporting pangasius to the US reaches the highest level of US$5/kg, it is the highest level since the beginning of the year.

The average price of frozen pangasius exported to China reached US$2.39/kg in August, up compared to the low of US$2.27 in July. The price of export to the Philippines has the lowest level in the markets, reaching only US$1.57/kg.

The average price of pangasius exports to markets since the beginning of the year has increased sharply compared to the same period in 2021. In which, the average price of frozen pangasius exports to the US reached US$4.64/kg, China reached US$2.47, Mexico US$2.75, to Thailand reached US$2.15 and to Brazil reached US$3.20/kg.

According to Ms. Le Hang, the demand for pangasius import markets will increase again in the next few months. Accordingly, growth fluctuations depend on the two largest markets, China and the US. The VietFish Fair has just taken place in late August and may also promote export to some markets.

With the current results and slight recovery trends in the next few months, Pangasius turnover in 2022 can record a record of US$2.5 to US$2.6 billion, 56% higher than in 2021.

Source: Customsnews