Catfish exporters optimistic about China, pessimistic about US

Catfish exports to China have been increasing rapidly, but Vietnam fears it may lose the US market.

 

Catfish exports to China have been increasing sharply

While catfish exports to the US and EU markets face tariff and technical barriers, exports to China have been increasing sharply. 

However, exporters have been advised to remain cautious about the Chinese market, where there are many latent risks.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), catfish export turnover in January reached $172.5 million, an increase of 43.7 percent over the same period last year. 

China was the biggest export market which consumed 23.9 percent of Vietnam’s exports ($41.2 million), an increase of 132 percent compared with the same period last year. Forty four percent of exports went across the border gates.

Duong Nghia Quoc, chair of the Vietnam Pangasius Association, said Vietnam’s catfish is increasingly favored by Chinese. 

China was the biggest export market which consumed 23.9 percent of Vietnam’s exports ($41.2 million), an increase of 132 percent compared with the same period last year. Forty four percent of exports went across the border gates.

“Chinese consumers have confidence in Vietnam’s catfish quality because they are accepted by choosy markets such as the US and the EU,” he said.

The General Directorate of Fisheries (GDF) confirmed that China is now the biggest importer of Vietnam’s catfish, and boosting exports to China now can balance supply and demand. 

However, dependence on the market and the cross-border trade will bring high risks to Vietnamese companies.

Le Chi Binh, deputy chair of the An Giang provincial Aquaculture and Seafood Processing Association, also thinks it would be better not to focus on the Chinese market, though high demand from the market now brings satisfactory profits to farmers and seafood processors.

Vietnam tries to retain US market

Talking about catfish exports to the US, an official of the Ministry of Agriculture and Rural Development (MARD) said it is like ‘one neck, two loops’, meaning that Vietnam’s catfish now has to bear both an anti-dumping duty and US-imposed catfish inspection program.

The US Department of Commerce (DOC) released a final decision after the POR 13 (13th administrative review), imposing anti-dumping duties of $2.39-7.74 per kilo, very high rates.

Despite big barriers, Vietnamese catfish exporters have affirmed they won’t give up the US market. 

Ngo Quang Truong, director of Bien Dong Seafood in Can Tho City said catfish can be exported to the US at up to $4 per kilogram, a relatively high price. If the US Department of Agriculture concludes that the farming and processing in Vietnam is similar to that in the US, Vietnam’s reputation for good catfish will improve.