| EU, China increase purchases, pangasius exports record positive growth since the beginning of the year Taking advantage of EVFTA, pangasius exports to Germany grow strongly |
Dr. Duong Nghia Quoc - Chairman of the Vietnam Pangasius Association had an interview with reporters of the Industry and Trade Newspaper about this issue.
The price of pangasius is very low, farmers still have to sell even though they are losing money. Can you share more about this issue?
Currently, according to businesses, tra fish exports have improved in recent months, but export prices are also low. Purchases from factories are also low and are lower than cost.
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| Pangasius export forecast in 2023 to reach maximum of 1.7 billion USD |
Currently, the price of 1kg of pangasius is about 27,500 - 28,000 VND/kg, but farmers sell it for only about 26,000 - 26,500 VND/kg. Thus, farmers are suffering heavy losses, even businesses are also suffering losses. Because many businesses have farming areas and reserves. The situation is very difficult.
The reason for the decrease in pangasius prices is due to a sharp decrease in consumer demand from Vietnam's major importing countries. According to Vietnam Customs data, pangasius exports to markets in October 2023 reached nearly 173 million USD, down 4% compared to the same period last year. Cumulative pangasius exports from Vietnam in the first 10 months of this year reached more than 1.5 billion USD, down 29% compared to the same period in 2022.
To date, China has become the largest market for Vietnamese pangasius, twice as large as the second largest market, the United States.
In the Top 6 markets that buy the most pangasius from Vietnam, including the United States, the United Kingdom, Mexico, China and Hong Kong (China), CPTPP, Brazil, only the Brazilian market is growing.
Specifically, the US market reached 228 million USD, down 54%; the UK market reached 54 million USD, down 1%, the Mexican market reached 58 million USD, down 37%, the Chinese and Hong Kong (China) markets reached 490 million USD, down 23%, the CPTPP market reached 202 million USD, down 28%, and the Brazilian market alone reached 83 million USD, up 5%.
With the current market situation, do you think this year's tra fish exports will reach the target of 2.5 billion USD as planned?
According to discussions with businesses, the possibility of tra fish exports reaching over 200 million USD in the last 2 months of the year. Thus, the total export value of the industry could reach around 1.7 billion USD.
2023 is a year of fluctuations, the pangasius industry faces many difficulties. If the world economy recovers, it is forecasted that pangasius exports will increase again, but the forecast is just a forecast.
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| Dr. Duong Nghia Quoc - Chairman of Vietnam Pangasius Association |
The concern now is that there is still inventory in their country. There is also inventory in domestic enterprises, but it is not large. Therefore, if market demand increases again, exports will likely improve.
Information from some businesses also shows that the market signal is starting to recover as the Chinese and German markets increase imports due to the year-end holiday season.
However, the export price of pangasius is still low, and the purchase volume is not as high as expected. Meanwhile, some businesses are not in a hurry to buy fish to sell because the export price is not high.
Despite the inflation situation in many countries, the demand for food is still essential. Pangasius is a fairly cheap product, but why is the demand still low, sir?
According to businesses, currently, there are similar products on the market that compete directly with Vietnamese pangasius, such as white-meat sea fish, and even China has snakehead fish. The selling price is lower and the quality is more guaranteed and stable. As for Vietnamese pangasius, due to the competition between businesses and the difficult situation in output, the product quality is uneven. Many businesses sell at any price. The quality is not guaranteed, thus affecting the reputation of Vietnamese pangasius.
To overcome this, the Ministry of Agriculture and Rural Development and specialized agencies need to check and ensure quality, ensuring good quality to be able to compete in the world market. For example, according to regulations, the glazing ratio is 10%, humidity is 83%. If any business does not ensure this, it will not be allowed to export.
Currently, the weakness of Vietnamese enterprises is that horizontal linkage between enterprises is very difficult, leading to unhealthy competition. When the market is difficult, all enterprises need money. Cheap or expensive, they will sell. Even with too low a price, it will lead to the situation of lowering the quality of products to reduce losses. If the quality is not maintained, it will lead to buyers boycotting Vietnamese goods.
What is your assessment of the market in 2024, sir?
The sine wave market has now bottomed out. The pangasius industry cycle will begin to recover after bottoming out. It is forecasted that pangasius exports will be better in 2024 than in 2023.
Thank you!
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