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Archive for November, 2010

4 groups of solution for pangasius export

Thursday, November 25th, 2010

Increasing the average export price, stabilizing raw materials production to balance the supply and demand, raising the quality management, strengthening the marketing and trade promotion were 4 groups of solution discussed by enterprises at the conference of Vietnamese pangasius exporters and producers 2010. This conference identified the difficulties, challenges and discussed the orientations, measures for sustainable and stable development of domestic pangasius industry.

In the past 3 years, pangasius export volume increased slightly but its export value decreased. In European markets, export prices for pangasius to its member countries are of different levels. Three main import markets are Spain, the Netherlands and Germany accounting for over 50% of market share but the average price is of different levels 0.30 – 0.40 USD/kg. Average export price to the U.S. also decreased by 6% while its import volume increased significantly.

To solve this problem, pangasius exporters request to set up and orient the export floor price for pangasius starting in 2011. Accordingly, enterprises must register in the specific market groups in accordance with VASEP’s floor price and commit to comply its deals. First the floor price will be applied to pangasius fillets for the market groups of EU, the U.S., and the Middle East (including Egypt), then depending on enterprises’s performance, it can be decided whether or not to expand the market for other groups.

Pangasius industry over the years has developed rapidly with the “explosion” of processing plants and the significant increase in aquaculture. Pangasius export surpassed US$1 billion, accounting for 30% of export value of Vietnam. However, once export reached 600 thousand MT, the imbalance of demand and supply, the market competition begin fiercely.

In order to stabilize the output of raw materials, the conference proposed the Ministry of Agriculture and Rural Development (MARD) to plan and stable export volume of pangasius about 1 million MT within three years. This ensures that supply and demand is balanced, farmers have the interest to continue investment, enterprises can sell with higher price through the quality competition instead of the current price competition.

The conference was attended by over 100 pangasius exporters. Most exporters agreed to raise the price for export pangasius in the moment, but in the long term, it is necessary to plan Vietnamese pangasius industry in the sustainable and stable development orientation.

Source: VASEP

Europe faces pangasius shortage

Thursday, November 25th, 2010

The Dutch and Scottish politicians who are launching vitriolic attacks on Vietnam’s pangasius industry — likely without any firsthand knowledge of the industry — may get their wish to reduce imports of the inexpensive, Vietnamese-raised fish, but through no efforts of their own. Europe is already facing a shortage of pangasius, and the situation is only going to get worse.

              Vietnamese processors are receiving such low prices for IQF pangasius fillets from European buyers — USD 2.80 to USD 3 per kilogram CIF for best quality fish (100 percent white with a 5 percent glaze) — that they’re stockpiling the fish in cold storage in Vietnam. Companies such as Bianfishco are reportedly holding upward of 10,000 metric tons of product each, while waiting to see what happens to a U.S. measure, part of the 2008 Farm Bill, that would transfer the responsibility of inspecting pangasius from the Food and Drug Administration to the Department of Agriculture, which would effectively slow imports considerably.

If the decision on the measure, which is expected in January, favors the Vietnamese, then the stockpiled supplies will be released to the U.S. market. IQF pangasius fillets are currently fetching USD 3.70 per kilogram CIF U.S. ports, which is at least USD 0.70 per kilogram higher than two years ago and about 30 percent above what European importers are paying.

If the decision goes against the Vietnamese, then processors will be forced to seek alternative markets.

There is already far higher demand for pangasius in Europe than there is fish available. The buyer for Globus, a major discount retailer in Germany, has publicly stated that he could sell twice as much pangasius than he has been able to buy but cannot get a hold of it. (Observers have estimated that Vietnam could easily sell about 2 million metric tons (round weight) of pangasius worldwide, double the amount that farmers are currently producing.)

The shortage in Europe is likely to last until May when the new harvest becomes available. This means that European retailers, some of whom can sell four to five containers each per week, will miss both the vital Christmas/New Year and Easter periods. (Each container has 20 metric tons of fillets on board.)

However, it is far from certain that the shortage will ease in May. The Vietnamese Ministry of Agriculture and Rural Development (MARD), which includes fisheries, is so concerned about the low prices being paid for pangasius in Europe, and the hardship it’s causing to Vietnamese farmers, that it is stepping in to restrict the volume of pangasius produced in 2011 to 1 million metric tons, the same as it was in 2009.

To achieve this, the ministry will limit the number of farming licences and set a minimum farm-gate price of VND 18,000 (USD 0.92) per kilogram, as this price has dropped to as low as VND 13,000 (USD 0.67) per kilogram. The ministry also wants to improve the product quality and thus hopes to raise the export price of pangasius to well over USD 3 per kilogram.

There have been several attempts by the Vietnamese Association of Seafood Exporters and Producers (VASEP) to impose a minimum selling price for pangasius in Europe and other regions of the world, but none have been successful. Now it seems that the government has lost patience and will itself try to impose controls on both the farmers and the processors who buy in pangasius from independent farmers.

How they intend to do this hasn’t yet been revealed. And it must be pointed out that the prognosis isn’t good, as previous attempts to impose minimum prices for pangasius have all failed. But, if the MARD is successful this time, then European importers will continue to face shortages. So the European politicians may get their wish, but European consumers will be deprived of a source of good, cheap whitefish.

Source: Pangasius Vietnam

Pangasius export, January – September, 2010

Monday, November 22nd, 2010

In the first 9 months of 2010, Vietnam has exported 474.8 thousand MT of pangasius, worth over US$1 billion, up 6.4% in volume and 2,1% in value compared to the same period of 2009. In September 2010 alone, Vietnam exported 58.3 thousand MT of pangasius, valued at US$122.6 million, down 0.6% in volume and 2.3% in value against the same month last year. Pagasius export value to main markets dropped (1.9% – 56.5%).

Markets September, 2010 Compared to the same month of 2009 (%) January – September, 2010 Compared to the same period of 2009 (%)
Volume (MT) Value (US$ Mil.) Volume Value Volume (MT) Value (US$ Mil.) Volume Value
EU 18,823 42.139 -4.6 -6.4 162,434 374.956 -2.2 -7.7
Spain 3,610 7.956 14.9 10.0 39,709 88.571 -1.3 -9.3
Germany 3,564 8.142 6.5 -1.9 27,576 69.347 -12.2 -15.2
The Netherlands 2,821 6.910 43.9 34.1 21,562 55.679 13.7 9.5
Poland 2,215 4.082 -39.7 -42.1 16,174 29.489 -5.0 -10.0
The U.S. 5,123 16.181 27.1 20.0 36,383 113.316 20.9 17.1
ASEAN 2,928 5.575 -25.1 -28.4 30,418 56.635 -6.0 -15.6
Singapore 933 1.860 -20.1 -21.5 9,663 19.402 1.2 -3.0
Malaysia 707 1.053 -39.4 -44.0 8,498 11.524 7.0 -1.9
The Philippines 320 0.609 -16.9 -21.9 4,957 9.773 31.8 22.3
Mexico 3,471 7.450 4.0 -0.1 26,740 58.139 20.6 11.9
Russia 3,946 6.503 -56.4 -56.5 26,143 43.762 -28.3 -26.4
Australia 1,758 4.911 5.8 3.9 11,473 32.447 26.3 24.2
Saudi Arabia 1,251 2.239 212.9 160.3 16,217 29.875 45.5 36.0
China & Hong Kong 2,007 3.464 17.8 11.9 16,275 28.984 15.7 12.6
Hong Kong 1,615 2.775 11.0 3.5 12,907 23.009 2.5 -1.9
Others 18,999 34.158 28.1 21.6 148,676 278.994 19.2 15.6
Total 58,306 122.620 -0.6 -2.3 474,758 1017.109 6.4 2.1

Source: VASEP

Aquaculture plants struggle with lack of raw material in Vietnam.

Monday, November 22nd, 2010

Seafood processing plants nationwide have been running at only 40-50 per cent capacity since the start of the fourth quarter, due to a shortage of raw materials, according to the Viet Nam Association of Seafood Exporters and Producers (VASEP).

The shortage has resulted in a price increase. Yesterday, tra fish were being sold for more than VND21 million (US$1,000) per tonne, a month-on-month increase of VND5 million ($256).

The cost of shrimp also increased by 15-20 per cent compared to a month ago.

These increases have forced prices up and many exporters are operating at a loss, struggling to meet contracts that were signed several months ago when the price was lower.

VASEP said more and more farmers were becoming less inclined to invest in aquaculture, despite the fact the price of seafood products on the world market was increasing.

Farmers were reluctant to take out loans due to high interest rates of up to 17 per cent on top of the increasing cost of feed, VASEP said.

According to VASEP, the shortage would be difficult to solve in the short term.- VNS

Director of Portunus Vietnam said his company had only exported small volumes of seafood recently, and may fail to reach his target this year due to the shortage.

Source: VASEP & Portunus Vietnam.

Salmon Situation in Week 46

Thursday, November 18th, 2010

The Northeast whole fish market remains somewhat unsettled; both higher and lower offerings are noted on smaller to midsized fish. Demand is fair. The European whole fish market trended slightly higher on6-7 kg fish. Supplies are adequate to barely adequate for a moderate demand.

The Chilean fillet market adjusted higher on 2-3 and 3-4 pound fillets. Supplies are barely adequate for a moderate demand. 4-5lb fillets trended upward on the higher end of quotations and 1-2s are unchanged. Offerings do continue to vary from seller to seller with a few still higher and lower offerings noted. The Chilean frozen portion market is firm; supplies are barely adequate for a moderate to active demand. A few still higher offerings have been collected. The Chilean steelhead market remains steady at listed levels. The West Coast whole fish market is also steady at listed levels. Supplies are adequate for a moderate demand.

Source: Portunus USA.

Shrimp Situation in Week 46

Thursday, November 18th, 2010

White Shrimp: 31-35 and 36-40 count HLSO Latin American white shrimp are unsettled. Off erings are mixed for generally quiet demand prior to the US Thanksgiving holiday. Overseas off erings are also mixed. 41-50 count shrimp are about steady. Smaller count shrimp are full steady. Off erings of Mexican 26-30 count and larger shrimp are full steady to fi rm with some premiums noted. 16-20 and 21-25 count Asian whites are increasingly available from India.

Black Tiger Shrimp: The market is steady to full steady at listed levels.

Gulf Domestic Shrimp: The HLSO market was once again largely unchanged. The exceptions were premiums in the U12 and U15 counts, both brown and white; and 21/25 count HLSO white shrimp. The balance of the market is full steady at listed levels. Supplies are held with confi dence given the increasingly limited supply situation that exists. PUD’s were steady with one exception; 41-50 count managed a small premium.

Source: Portunus USA.

Europe faces pangasius shortage

Wednesday, November 17th, 2010

The Dutch and Scottish politicians who are launching vitriolic attacks on Vietnam’s pangasius industry — likely without any firsthand knowledge of the industry — may get their wish to reduce imports of the inexpensive, Vietnamese-raised fish, but through no efforts of their own. Europe is already facing a shortage of pangasius, and the situation is only going to get worse.

Vietnamese processors are receiving such low prices for IQF pangasius fillets from European buyers — USD 2.80 to USD 3 per kilogram CIF for best quality fish (100 percent white with a 5 percent glaze) — that they’re stockpiling the fish in cold storage in Vietnam. Companies such as Bianfishco are reportedly holding upward of 10,000 metric tons of product each, while waiting to see what happens to a U.S. measure, part of the 2008 Farm Bill, that would transfer the responsibility of inspecting pangasius from the Food and Drug Administration to the Department of Agriculture, which would effectively slow imports considerably.

If the decision on the measure, which is expected in January, favors the Vietnamese, then the stockpiled supplies will be released to the U.S. market. IQF pangasius fillets are currently fetching USD 3.70 per kilogram CIF U.S. ports, which is at least USD 0.70 per kilogram higher than two years ago and about 30 percent above what European importers are paying.

If the decision goes against the Vietnamese, then processors will be forced to seek alternative markets.

There is already far higher demand for pangasius in Europe than there is fish available. The buyer for Globus, a major discount retailer in Germany, has publicly stated that he could sell twice as much pangasius than he has been able to buy but cannot get a hold of it. (Observers have estimated that Vietnam could easily sell about 2 million metric tons (round weight) of pangasius worldwide, double the amount that farmers are currently producing.)

The shortage in Europe is likely to last until May when the new harvest becomes available. This means that European retailers, some of whom can sell four to five containers each per week, will miss both the vital Christmas/New Year and Easter periods. (Each container has 20 metric tons of fillets on board.)

However, it is far from certain that the shortage will ease in May. The Vietnamese Ministry of Agriculture and Rural Development (MARD), which includes fisheries, is so concerned about the low prices being paid for pangasius in Europe, and the hardship it’s causing to Vietnamese farmers, that it is stepping in to restrict the volume of pangasius produced in 2011 to 1 million metric tons, the same as it was in 2009.

To achieve this, the ministry will limit the number of farming licences and set a minimum farm-gate price of VND 18,000 (USD 0.92) per kilogram, as this price has dropped to as low as VND 13,000 (USD 0.67) per kilogram. The ministry also wants to improve the product quality and thus hopes to raise the export price of pangasius to well over USD 3 per kilogram.

There have been several attempts by the Vietnamese Association of Seafood Exporters and Producers (VASEP) to impose a minimum selling price for pangasius in Europe and other regions of the world, but none have been successful. Now it seems that the government has lost patience and will itself try to impose controls on both the farmers and the processors who buy in pangasius from independent farmers.

How they intend to do this hasn’t yet been revealed. And it must be pointed out that the prognosis isn’t good, as previous attempts to impose minimum prices for pangasius have all failed. But, if the MARD is successful this time, then European importers will continue to face shortages. So the European politicians may get their wish, but European consumers will be deprived of a source of good, cheap whitefish.

Source: SeafoodSource

EU needs to import pangasius for the New Year and Christmas

Wednesday, November 17th, 2010

Currently EU accounts for 37% of Vietnamese pangasius export turnover – the largest import market since DOC applied the antidumping duty on this fish.

In the first 8 months of 2010, there were 132 enterprises participating in exporting pangasius to EU with 143,611 MT, valued at US$332.8 million, down 1.8% in volume and 7.8% in value over the same period last year. Spain and Germany were 2 countries with the most import volume but also significantly reduced compared to others in EU. In fact, wholesale price and volume of pangasius at the largest food service center in Madrid, Spain did not decline this year.

European debt crisis in the earlier this year has decreased importers’ confidence. The EUR depreciated against the USD makes importers not active in buying for inventory. Evenly, importers offer to purchase pangasius at low price to compensate for shrinking profits because of the EUR depreciation.

However, up to now, the weakening USD against the EUR has made more profits to importers through importing pangasius from Vietnam in USD. Therefore, they desire to import a quantity of this item to prepare for the upcoming New Year and Christmas, but their import price for pangasius has not increased.

Some enterprises offered pangasius export price to EU at 2.8 USD/kg as price of domestic raw materials is rising.

Source: VASEP

Boost seafood export to African market

Wednesday, November 17th, 2010

Although being a poor continent and very unequal among countries, Africa is a strong attractive market with high seafood demand thanks to its revenues of precious natural resources export and abundant population.

In the term of foreign trade with Africa, Vietnam has excess of imports over exports. While other markets in the world tend to saturate or strengthen measures of protection through applying technical barriers, African market is opening up opportunities and prospects. So far, seafood is among export categories with high turnover in this market.

Since 2000 – 2003, only a few African countries have imported Vietnamese seafood with not great amount from 5 – 150 MT per year such as South Africa, Central Africa, Nigeria, Libya, Algeria, Angola, etc. Seafood export volume to Africa increased gradually in 2007 like Egypt (7,000 MT), Nigeria (1,300 MT).

In 2009, Egypt remained the largest market in Africa for Vietnamese seafood with 29.6 thousand MT, worth US$60.4 million, followed by Algeria 2,800 MT, South Africa 767 MT, Libya 620 MT and Morocco 364 MT.

In the first 8 months of 2010, Egypt has imported over 16 thousand MT of seafood (mostly live, fresh, frozen shrimp; processed black tiger shrimp; live, fresh, frozen whiteleg shrimp, pangasius, mollusk from Vietnam, followed by Algeria 1,900 MT, Nigeria 1034 MT, Libya 407 MT, South Africa 223 MT.

Currently, Vietnam’s exported categories structures to Africa are diversified increasingly due to market demand is growing, requirements for quality and design are not too strict. Pangasius is popular in the continent. The largest import markets are Egypt, Nigeria, Algeria and Tunisia.

Most countries in Africa are developing countries or less developed ones so the demand for imported goods to meet the production and consumption is very large. Its import turnover continues to increase and tends to increase strongly in next time.

Source: VASEP

Pangasius imports overtake pollock

Wednesday, November 10th, 2010

Imports of pangasius into the European Union overtook Alaska pollock for 2009, for the first time in history. According to the Fishfish study 2010 – produced annually by the EU Fish Processors and Traders Association (AIPCE), and EU Federation of National Organizations of Importers and Exporters of Fish (CEP) – imports of pangasius for 2010 were 726,000 tons, up from 697,000 tons for 2008.

Imports of Alaska pollock fell to 720,000 tons, compared to 907,000 tons for 2008.

“Alaska pollock was the first successful introduction of a new volume whitefish species, which quickly occupied the number two spot for popularity behind cod before briefly becoming the top species in 2008,” states the report.

However, a combination of raised prices, due to Bering Sea stock fluctuations, and a strong dollar saw volumes drop by over 20 percent in a year, is said. “For example pangasius from Vietnamese aquaculture has recently proved invaluable as a substantial new source of supply to grow the market, and helping to compensate for current declines in Alaska pollock supply.”

Imports of pangasius for the first half of 2010 suggest the level for this year will be marginally down on 2009.

Over the first half of 2010, Vietnam has exported 348,738 tons of pangasius into the EU; China: 339 tons; Thailand: 75 tons; and Bangladesh: 45 tons; giving a total of 349,152 tons.

Cod was the top import species, with 799 tons imported into the EU, up from 746,000 tons for 2008.

The total supply of cod, including catches by EU vessels and imports, was 925,000 tons, up from 863 tons for 2008.

Source: Intrafish