All metrics point to the U.S. importing far less pangasius in 2019 than it did in 2018, according to data from the National Marine Fisheries Service compiled by the National Fisheries Institute.
As of October, the U.S. had only imported 132,000 metric tons (MT) of pangasius, compared to the 273,000 MT that it imported in 2018. Even if the country suddenly imported 100,000 MT in just a few months, imports would still be at their lowest level since 2011.
“Imports into the U.S., per the data, would indicate that through October 2019 versus the prior year’s data, we’re looking at about a 40 percent decline in imports,” Mike Kocsis of High Liner Foods said during the value finfish panel at the Global Seafood Market Conference (GSMC).
That sharp decrease in imports is coupled with rising global production. Current estimates indicate Vietnam, China, and Indonesia produced 2.475 million MT in 2019, with estimates for 2020 bumping that number up to 2.525 million MT. Vietnam, by far the largest producer, is estimated to have produced 1.5 million MT in 2019.
Unsurprisingly, as U.S. demand has decreased at the same time as significant production increases, prices have dropped. While not at their lowest level ever, prices as of December were at levels not seen since 2017.
The numbers were a significant departure from GSMC in 2019, where pangasius prices were at highs and demand was constant.
“Last year we were here saying ‘wow,’” Kocsis said.
Part of that shift could be partially due to the fact that pangasius imports to the U.S. now fall under U.S. Department of Agriculture inspection, the only seafood species with that distinction. That may have led to companies shying away from sending pangasius to the U.S., and therefore avoiding the costs associated with compliance with those standards. At the same time, other countries are importing more pangasius, including China.
Despite the obstacles put up by the USDA inspection, panelists speculated that it could be turned into a marketing opportunity for the fish, which has extremely low menu penetration in restaurants. Data indicates that just 1.1 percent of all menus mentioned pangasius in 2019, and that is an increase from even lower penetration in years past.
“I thought it was funny when we did the little consumer survey, and pangasius had 0 on it,” Jonathan Shirley of SYSCO said.
Frank Bodin of the Nordic group speculated that the lack of specific mention on menus might be due to the fact pangasius is just labeled as “whitefish.”
“There’s this bucket of whitefish out there, where everything gets labeled as just whitefish,” he said. “Perception is low, people don’t really know what they’re buying.”
USDA inspection could be presented a positive attribute of the species.
“I think with the whole USDA inspections [transition], it’s fantastic that pangasius is still in the market,” Todd Clark of Endeavor Seafoods said.
Photo by Chris Chase/SeafoodSource
