Pangasius exporters reduced their sales because of US market

Pangasius export turnover to the US has decreased by nearly half, leading some of Vietnam's leading pangasius export enterprises to not reach their expected sales.

Pangasius processing for export.

The main market fell deeply

According to the Vietnam Association of Seafood Exporters and Producers, by the end of October 2019, the total export value of pangasius reached US$1.64 billion, down 10% compared to the same period in 2018. Due to the export value of pangasius to some major export markets such as the US, Brazil and Colombia, which are still deep in negative growth, raw material prices fell sharply over the same period last year, so pangasius exports during this time could not rise higher.

For the US market, export turnover has decreased sharply. By the end of October 2019, the total value of pangasius exports to the US market reached US$232.9 million, down 45.8% over the same period last year. It can be said that this year, exporting pangasius to the US market is not as expected of many businesses. Due to the decline in exports to this market, some leading pangasius export enterprises of Vietnam havenot reached the expected sales.

Barriers to trade and technology and a sharp drop in the price of domestic raw pangasius have a direct impact on the export price, which also made the export value of pangasius to this market decrease in the first 10 months of this year. On November 1, 2019, the United States Department of Agriculture's Food Safety Inspection Department (FSIS) announced the recognition of the Siluriformes fish and fish export inspection and control system of three countries: Vietnam, China and Thailand are eligible for parity with the United States.

The US's official recognition of Vietnam's Siluriformes fish and fish product inspection system equivalent to that of the United States is good news for Vietnamese pangasius exporters to this market, especially in the context of value. Pangasius exports to the US decreased sharply compared to the same period last year. Hopefully, in 2020, Vietnam's pangasius export value to this market will increase again, but this year and the fourth quarter of the end of the year, it is forecasted that pangasius export value to this market will still decrease.

Expectations for China-Hong Kong market

In October 2019, pangasius export value to China - Hong Kong market continued to grow quite well, rising17.5% over the same period last year.

In the first quarter of 2019, the export value of pangasius to this market decreased. However, from the second quarter to the end of October 2019, pangasius export value to China - Hong Kong increased positively from 3.7 to 71% over the same period last year. The total value of export in 10 months reached US$552.4 million, up 19.3% over the same period in 2018.

China - Hong Kong continues to be the largest and most diverse export market for pangasius products from Vietnam, from traditional frozen pangasius products to whole pangasius buttered fish frozen in salt, frozen fish bubbles; frozen tra fish; frozen whole tra fish. The export price is from US$1.05 to US$8.8/kg. It is forecast that in 2019, pangasius export value to this market will increase by about 20% compared to 2018.

Pangasius exports in the first 10 months of this year to big markets such as the EU, ASEAN, Mexico and Japan increased sharply in the first two quarters of the year but leveled off or slowed growth in the remaining two quarters. This makes the total export value of pangasius in Vietnam not increase.

As of October 2019, pangasius exports to the EU reached US$204.4 million, up 3.6%; ASEAN reached US$163.8 million, up 1.6%; Mexico reached US$77.1 million, up 2.9%; Japan reached US$27.5 million, up 0.6%. Despite positive growth, the growth rate is not stable. Therefore, in the last quarter of the year, it is difficult for pangasius exporting enterprises to increase strongly to these markets.

Looking at the picture of Vietnam pangasius export in the first 10 months of this year, there are still many dark areas in some key markets. Therefore, it is forecast that by the end of 2019, the total value of Vietnam's pangasius exports will decrease by about 15% compared to 2018.