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4 groups of solution for pangasius export

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

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