The doubling in price of 5 to 7 ounce pangasius fillets imported to the United States has led to an increase in pollock sales.
Tradex Food Sales, a Canada-based premium frozen seafood supplier and exporter, said the price of pangasius has risen from USD 1.50 (EUR 1.25) per pound last year to USD 3 (EUR 2.5) per pound in its regular “3-minute market insight.” The company said it expects the price to rise a further USD .05 (EUR .04) to USD .10 (EUR .08) in the coming weeks.
The price increases come as no surprise given the new U.S. regulations and increases to antidumping duties that have hit the Vietnamese trading companies with higher costs. A decision by the U.S. Department of Agriculture in 2017 meant that after 1 Sept. 2017, all catfish species (pangasius is officially recognized as a catfish species in the U.S.) will be subject to full scrutiny.
That meant increased scrutiny on the Vietnamese production chain, including USDA inspections, driving up the cost of production and importation. Vietnam produces 90 percent of the pangasius sold in the United States, and a sharp increase in pangasius prices was seen shortly after the increase in attention given to the producers, according to Tradex.
Antidumping fees have also been increased to high levels. The United States decided on 20 March to impose rates between USD 2.29 and 7.74 (EUR 1.86 and 6.31) per kilogram on most Vietnamese exporters that shipped to the country during the review, the highest rates ever issued. Threats of legal action soon ensued from the Vietnam Association of Seafood Exporters and Producers.
Those higher fees have even led to some exporters debating whether or not to suspend all shipments to the U.S. Pangasius shipments to the U.S. fell between Jan. and Nov. 2017, down 9.7 percent. Vietnam’s export value to the United States also fell 54.6 percent year-on-year. As of January, only two of 14 Vietnamese pangasius exporters were still shipping to the United States.
All of the those factors leading to the increased price of pangasius, according to Tradex, is leading to an increase in pollock sales due to its consistent sizing, similar texture, and favorable pricing at USD 1.15 to 1.20 (EUR .95 to 1) per pound. The company said it expects pollock imports, and prices, to rise in the coming months as demand strengthens.
