More than two dozen Vietnamese pangasius firms have ceased shipping product to the European Union after rejecting proposed price reductions in prices from E.U. importers, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
At least 25 pangasius exporters had withdrawn from the E.U. market as of the end of May, according to a 13 July statement from VASEP, which did not provide the names of any of the firms involved in the pullback.
Vietnam exported pangasius worth USD 51 million (EUR 43 million) to the E.U. between 1 January and 15 June, a drop of 21 percent year-on-year. Top pangasius exporter Vinh Hoan saw its E.U. sales contract 25 percent to VND 100 billion (USD 4.3 million, EUR 3.7 million) in June.
The average price for Vietnamese pangasius through 2021 thus far has remained at or near USD 2.35 (EUR 1.98) per kilogram, despite rising costs faced by producers. Aquaculture feed prices have risen by between 15 and 20 percent year-on-year, while shipping costs have ballooned by between 500 and 700 percent over last year. Costs for input materials have also risen. In this context, the fact that Vietnamese pangasius exports have maintained export prices at stable levels can be considered a success, VASEP said.
The E.U. was expected to be a growth market for Vietnam’s pangasius exporters this year, as the bloc is well into its COVID-19 vaccination campaign and business activities are returning to normal there, VASEP said. But in recent months, E.U. importers have asked for lower prices, saying they are facing financial pressure because demand for whitefish, including pangasius, remains low while their logistics and transport costs have risen. As a result, they have asked for lower purchase volumes and prices, and some have postponed or canceled signed contracts outright, according to VASEP. Those Vietnamese companies that could not accept their E.U. partners’ requests have pulled out of the market and shifted their focus to other regions, VASEP said.
Vinh Hoan remained the biggest pangasius exporter to the E.U. between January and May, followed by NTSF, Godaco, Navico, and Vinh Quang, VASEP said.
In early July, the farm-gate prices of pangasius in the Mekong Delta ranged from between VND 21,500 and VND 22,000 (USD 0.93 and USD 0.95, EUR 0.78 and EUR 0.80) per kilogram. With those prices, farmers still faced a loss of between VND 1,000 and VND 2,000 (USD 0.04 and USD 0.08, EUR 0.03 and EUR 0.06) per kilogram, Nong nghiep Viet Nam newspaper reported 5 July.
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