The value of pangasius exports to the United States from Vietnam exporters fell significantly in the first half of this year due to high stockpile and low prices, according to a top exporter.
Vietnam exported pangasius worth USD 120.9 million (EUR 107.8 million) to the U.S. between January and June, down 42 percent year-on year. With the latest data, the U.S. has fallen from being the biggest buyer of Vietnamese pangasius to being the third biggest, after China and the European Union, Nam Viet Corporation (Navico) said in a report.
Navico also saw its value of exports to the U.S. decreased 29 percent to just USD 600,000 (EUR 534,876) in the first six months.
“The main reasons are high inventory and strong decrease in price, which prevents U.S. importers from importing more products,” the company said in its report. But the company said the market is expected to recover in the coming months when the inventory has been cleared up and the market enters holiday season.
Other markets
Vietnam exported pangasius worth USD 926.7 million (EUR 826.1 million) in the first six months, down 7 percent from a year earlier.
But unlike the U.S., exports to their other major markets rose in the period. China (including Hong Kong) was the biggest buyer in the first half of 2019, with a sales value of USD 261.5 million (EUR 233.1 million), up 8 percent year-on year.
The rise in the exports to China was because pangasius has entered restaurants chains and become increasingly more popular with Chinese customers. In addition, the strict control by Chinese authorities over the export of the fish through its land borders has led to the increase in ocean shipping to serve this huge market, Navico said.
Exports to the E.U. in the period surged to USD 133.2 million (EUR 118.8 million), up 16 percent, as pangasius' reputation has recovered following negative media reports on growing conditions appeared in 2017. In addition, lower prices have spurred more demand for pangasius in Europe, Navico said, adding it hopes the free trade agreement between Vietnam and E.U. signed last month will help boost its growth in the E.U. in the future.
The value that Vietnam gained from exports of pangasius to the ASEAN bloc in the first six months of 2019 was USD 115.7 million (EUR 103.1 million), up 22 percent year-on year. Lower prices have helped increase the volumes of exports to the ASEAN members, especially to Thailand and the Philippines, and this trend is expected to continue, according to Navico.
Pangasius prices in the Mekong Delta fell to 10-year low, local media said earlier this month.
Navico also said raw material price has decreased to three-year low at VND 19,500 (USD 0.84, EUR 0.75) per kilogram due to higher harvest volume and decrease in imports from the U.S. market.
Nam Viet is one of the five biggest pangasius companies in Vietnam. It currently has 330 hectares of production farms in Mekong Delta, supplying 95,000 metric tons of pangasius material each year. The company on 8 January began work at a farming project covering 600 hectares in An Giang Province it believes will be the biggest pangasius farm in Vietnam.
