Prices of pangasius material in Vietnam's Mekong Delta have surged recently due to rising demand for exports and low domestic supply.
The farmgate prices of pangasius on 14 February were between VND 27,000 and VND 30,000 (USD 1.19 and USD 1.32, EUR 1.05 and EUR 1.17) per kilogram for fish between 0.8 kilograms and 1.1 kilograms in weight, up between 12.5 percent and 25 percent from the previous week's average of VND 24,000 (USD 1.06, EUR 0.94) per kilogram, according to an industry source in Long An Province, who requested anonymity to discuss pricing.
A sales executive at a second pangasius company in An Giang confirmed the increase and attributed it to a shortage of pangasius material in the domestic market and high demand from processors.
According to Vietfish Magazine on 14 February, some traders expect prices will surpass VND 30,000 (USD 1.32, EUR 1.17) per kilogram, which will encourage farmers to begin stocking again, after delays related to COVID-19. Vietnam’s pangasius industry had to deal with “unpredictable difficulties” in 2021 due to a nationwide outbreak of COVID-19 that severely disrupted the industry’s production and export activities. During the lockdowns, 12 out of 51 pangasius feed plants were closed about half of the 106 pangasius-processing factories in Vietnam's five major pangasius-producing provinces suspended production entirely, with the rest significantly curtailing production due to labor limitations.
As a result, many farmers suspended farming activities, leading to the current shortage of material.
The Vietnam Association of Seafood Exporters and Producers said in January it anticipated the supply of raw material will be a top concern for the industry in 2022, following the sharp decrease in stocking during the lockdowns in the third quarter and cold weather conditions in late 2021. The price of pangasius materials and feeds are expected to remain high in 2022.
Vietnam exported pangasius worth USD 1.6 billion (EUR 1.4 billion) last year, 8.4 percent higher year-on-year.
Photo courtesy of Vietnam Association of Seafood Exporters and Producers
