The increase in average export price of pangasius and price of domestic raw materials recently amid decreasing supply until 2011 would be “golden” chance for US$1.5 billion export pangasius industry to restructure for the long-term development.
Mr. Duong Ngoc Minh, the Chairman of Fish Committee (VASEP) said at the Pangasius Exporter and Producer Conference 2010 on Thursday, October 19, 2010, the export price of pangasius in past 10 days increased by 15 – 20 cents per kg, after months of being reduced.
Minh said that the high demand in the import markets and low raw material production in the Mekong Delta are the main factors behind the increases of export price and domestic price of raw material.
Reduced output, while the average export price is in an uptrend is a good time to re-balance the supply – demand and planning of pangasius industry. At the meeting, VASEP has set four main groups of solutions for the pangasius industry since 2011, particularly, establishing the export floor price and fish production planned at 1 million tons per year.
Specificly, the floor price is calculated based on cost factors including cost of raw materials per production costs to ensure profits for farmers. The floor price is widely publicized, but if enterprises continue to sell below that price, it would be suggested that Nafiqad suspended export certification period.
According to Mr. Minh, VASEP proposed the floor price for export pangasius to Russia, EU and Middle East countries since 2011 was 2.8 USD per kg.
However, VASEP said the difficulties in 2011 are also the opportunities to re-balance the pangasius industry, so VASEP proposes the Ministry of Agriculture and Rural Development that the production of 1 million tons was maintained for about 3 years.
In the first 9 months of 2010, pangasius export has reached more than 472 thousand tons, worth more than US$ 1 billion. According to the Freshwater Fish Committee (VASEP), in the last 3 months this year, pangasius export is expected to reach US$ 400,000, bringing the total annual turnover of over US$1.5 billion.