Pangasius has long been viewed as a low-priced product, but market developments in the last two years have proved this is no longer true, according to Vi Tam, CEO of top exporter Vinh Hoan.
For years, Vietnamese exporters have faced high antidumping duties in the United States, as they were accused of selling pangasius at a price that is lower than the normal rate. In addition, media in some European markets labeled pangasius as a cheap product with low quality, encouraging consumers to stop eating the fish.
Many in Vietnam’s pangasius industry viewed the high-profile campaign against pangasius as a concerted effort by Europe to protect its domestic market. But with the news that Vietnam’s pangasius exports to the E.U. have rebounded, Tam said she believes that Europeans have decided that pangasius is “no longer a cheap product.”
“Latest updates as of today show that pangasius export prices have risen at a high level,” Tam told a conference during the Vietfish conference and expo in Ho Chi Minh City, Vietnam, which took place 22 to 24 August.
Export prices of pangasius from Vietnam have increased by about 15 percent year-on-year since 2017 and this has resulted in big profit for local farmers in the last two years, she said, citing figures provided by the Vietnam Association of Seafood Exporters and Producers (VASEP).
The cost and freight (CFR) for a cargo of 18 metric tons of frozen pangasius fillets exported from Vietnam’s southern port of Cat Lai to the U.S. between 12 and 19 July was USD 5,666 (EUR 4,844) per ton.
Meanwhile, a cargo of 10 metric tons of frozen pangasius fillets shipped to The Netherlands from Cat Lai in the same period had a free on board (FOB) price of USD 3,889 (EUR 3,324) per ton, according to data released in July by Vietnam Industry and Trade Information Center under the Ministry of Industry and Trade. It did not provide a year-over-year breakdown.
Normally, a rise in prices of a product may lead to lower demand. But so far, this is not the case for pangasius, as customers still choose the product even though prices are up, Tam told SeafoodSource.
“Of course, if prices keep going up and surpass the affordable price range then sales may face problems,” she said.
In the past, pangasius prices were low partly because supply, including even for low-quality products, exceeded demand. But now that pangasius has caught on in new and fast-growing markets – primarily in ASEAN countries, Latin America, and most of all, in China – higher prices may be a new reality for the sector, Tam said.
Photo courtesy of Vinh Hoan
