I.D.I. Seafood, a pangasius company based in Vietnam’s Mekong Delta, has trimmed the expected profit this year amid obstacles caused by the COVID-19 outbreak.
The company hopes it will earn a net profit of VND 160 billion (USD 6.9 million, EUR 6 million) this year, down 50.9 percent from 2019, I.D.I said in a report prepared for its annual stakeholder meeting scheduled for 19 June.
It also plans to gain a total sales value of VND 7.145 trillion (USD 306 million, EUR 269 million) this year, 7.6 percent lower than last year.
“2020 remains a difficult year for Vietnam’s processing and exports of seafood products, particularly pangasius. The global outbreak of the coronavirus has disrupted the global supply-demand balance and driven the world’s economy to an expected prolonged crisis,” the company said.
According to I.D.I, the pangasius industry has been hit hard by the COVID-19 pandemic, with exports to its key market – China – plunging in the first quarter. But while China has resumed imports since March following their containment of the deadly virus, the outbreak has spread to other big markets in Europe, North America, South America, the Middle East, and other Asian countries. Therefore, the export prospects of the industry this year will largely depend on the recovery from the coronavirus in the major markets.
“However, with a large market share in China (including Hong Kong), I.D.I’s exports are not likely to be affected too much during the coming months before other key pangasius-consuming countries are able to contain the pandemic,” I.D.I said.
The company exported pangasius worth USD 134.6 million (EUR 118.4 million) last year, largely to other countries in Asia, with USD 91.3 million (EUR 80.3 million) or 67.8 percent of the total. North America and South America saw export totals of USD 30.5 million (EUR 26.8 million) – or 22.6 percent – Europe had USD 9.3 million (EUR 8.2 million) or 6.9 percent, and Australasia had USD 2.6 million (EUR 2.3 million) or 1.9 percent of the total.
I.D.I. said material prices fell continuously last year, to between VND 18,000 and VND 19,000 (USD 0.77 to USD 0.80, EUR 0.68 to EUR 0.72) per kilogram in the fourth quarter from around VND 29,500 (USD 1.30, EUR 1.10) per kilogram in the first quarter, due to oversupply.
But farmers who signed contracts to sell material to the company could still earn a profit in 2019.
I.D.I processed 117,319 metric tons (MT) of pangasius at its factories last year, 85 percent of which came from its own farms and associated farmers.
