Sources in the US report seeing increases in asking price for pangasius out of Vietnam, though the forecast at the moment remains hazy, consisting mainly of “expect price rises this year”.
So far the asking price is up $0.10- 0.15 per kilogram, based on the 'replacement costs' Vietnamese packers anticipate facing thanks to the new US Department of Agriculture (USDA) inspections. This new regulation is slated to enter into force from March 1.
“The top shippers have raised prices, citing the increased cost of USDA compliance,” said Don Kelley, procurement manager with Washingon importer Western Edge Seafood. “3- 5 have been tight in Vietnam for some months, even before the announcement of USDA ,so a market differential is justified,” he added.
This increase, he said, has been $0.10- 0.15. “There are some legitimate costs that will be incurred by producers. For example, adherence to USDA net weight standards – which are different to FDA [Food and Drug Administration] – will increase costs by several percent.”
“And it is believed that containers will have to stop in approved freezer facilities to await inspection , which will add costs into logistics before final delivery can be made,” he added.