Catfish exports to China plummet
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Pangasius exports to China in the first eight months of this year fell 28%to US$406 million, according to the Vietnam Association of Seafood Exporters and Producers.
Since September Chinese demand for the fish has not increased much even as it has stepped up imports from Norway, South Korea, Australia, and Chile.
The director of a pangasius export company in southern An Giang Province said that demand from Chinese hotels and restaurants for catfish is low now.
Chinese consumers prefer fresh seafood over frozen products.
Besides difficulties in exporting, Vietnamese pangasius firms are also facing high input and farming costs.
According to data from catfish exporters, farmers’ production costs are now VND26,500-27,000 (over US$1.1) per kilogram while their selling price is VND300-500 lower.
The average export price is $2.5-2.6 per kilogram, down from $3.2 a year ago.
“We are trying to sustain production, but this year profits have dropped sharply,” the export company director said.
According to VASEP, demand for Vietnamese pangasius will increase again in the fourth quarter, the peak season in China.
Questions & Answers
Q.What is the primary reason for the decreased demand for Vietnamese pangasius in China?
What is the primary reason for the decreased demand for Vietnamese pangasius in China?
Chinese consumers currently favour fresh seafood over frozen products. This shift in preference has contributed to lower demand from hotels and restaurants for imported catfish.
Q.Are Vietnamese pangasius exporters facing challenges beyond reduced Chinese demand?
Are Vietnamese pangasius exporters facing challenges beyond reduced Chinese demand?
Yes, they are also grappling with high input and farming costs. Farmers' production costs exceed their selling prices, impacting profitability for the export companies.
Q.What is the current financial situation for pangasius farmers and exporters in Vietnam?
What is the current financial situation for pangasius farmers and exporters in Vietnam?
Farmers' production costs are higher than their selling prices, resulting in losses. Exporters are seeing sharply reduced profits this year, despite efforts to sustain production levels.
Q.Is there any expectation for Chinese demand for Vietnamese pangasius to recover?
Is there any expectation for Chinese demand for Vietnamese pangasius to recover?
Yes, the Vietnam Association of Seafood Exporters and Producers (VASEP) anticipates that demand for Vietnamese pangasius will increase again during the fourth quarter, which is China's peak season.