Higher revenue from exports of value-added pangasius products

This quarter saw a strong rise in sales of value-added seafood products. However, in the pangsius sector, exporters mainly provided fish in frozen fillet form. Frozen fish fillets brought back US$405.011 million, representing 99 percent of proportion and increasing by 4.9 percent year on year. In contrast, value-added products made a small part of 1 percent in nationwide exports and only big companies are able to process and sell them. However, it is important to note a year-on-year rise of 54.9 percent to US$3.55 million of sales of value-added products in the first quarter. This was a high growth compared to that of the previous years.

In Q.I/2014, Brazil reported the highest growth in purchase among the 8 largest importers of Vietnamese pangasius. This country increased imports of pangasius from Vietnam as it was reducing consumption of Alaska pollock. But Alaska pollock has still been the most imported fish in this market through March. Pangasius ranked second but got the highest growth rate among imported white meat fish species. If the trend is kept in coming months, pangasius will pass Alaska pollock to be the first outside fish in Brazilian market.

Sales to the EU and the U.S. made a great contribution to Vietnamese pangasius exports. The U.S. was the leading pangasius importer of Vietnam with US$84 million, accounting for 20.5 percent. It was followed by the EU with US$83 million, accounting for 20.3 percent. European imports from Vietnam remains quiet while the U.S. may slow down imports of Vietnam pangasius into the market.

Spain - the biggest consumer of pangasius in the EU – increased imports of pangasius in Q.I/2014. This market sourced US$22.7 million of pangasius products, up 5.7 percent year on year. This is a small growth, but it showed a positive sign of recovery from this market, which saw drop in pangasius purchase in many previous months. Over the recent years, economic difficulties affected spending for seafood of Spanish consumers. 

On February 7, 2014, the U.S. president Barack Obama officially signed to launch the Farm Bill 2014; in which, there was a provision to shift the inspection of catfish – including pangasius from Vietnam – from FDA to USDA. Though some experts in the industry predicted that the new rule would have not affected seriously to Vietnamese pangasius exports to American market in 2014, it is definitely a tough challenge for pangasius in the near future. And what is more? On March 31, 2014, The U.S. Department of Commerce (DOC) has officially issued the final results of the ninth antidumping duty administrative reviews on certain frozen pangasius fillets imported from Vietnam. The period of review (POR) is August 1, 2011 through July 31, 2012. Most exporters to the U.S. are subject to a higher anti-dumping duty on their frozen pangasius fillets. Only companies with low tax rate could send cargos to this market.

Pangasius companies say that domestic supply of raw material is just enough to processing; therefore, many of them are turning to produce value-added products to export. This kind of products has currently made up a small part in their total production.