The price increase for Urner Barry quotations of 3-5 oz frozen tilapia fillets was the first jump since the beginning of July. Last week’s closing average price for the item was $2.35 lb about 24 percent higher compared to year ago levels and just shy of the five-year-high price reached in late 2010.
Importers said the summer price hike is a result of higher overseas replacement costs—or the import price per pound. According to Urner Barry’s latest Aquaculture Insider’s Report, overseas replacement costs in June were $2.05 per pound up 10 percent compared to the start of the year and the highest such value since May 2011.
The hike in replacement costs coincides with a 20 percent decline in US tilapia imports that have fallen to 140.9 million lbs; a near 40 million lb difference compared to year ago levels. The steep drop in frozen fillet imports is heavily attributed to a drop in Chinese imports—the top supplier to the US.
For example, YTD US imports of frozen Chinese tilapia fillets are down just over 20 percent to 124.5 million lbs.
According to one major importer, China’s production woes are a result of massive 2012 buying when US importers jumped on a glut of cheap tilapia last summer that drove US imports up 65 percent compared with 2011.
This jump on summer orders saw replacement costs—or the import value per pound—plummet from $1.94/lb in May 2012 to $1.75 in October of that year.
However, this ‘emptying of the ponds’ last year caused demand to exceed supply in 2013 which forced overseas replacement costs soaring 17 percent from $1.75 to the aforementioned $2.05/lb.
At the same time, higher replacement costs were met with increased production costs namely with feed prices. For example, CME Futures Prices for soybean meal are currently 10 percent above levels recorded in January 2011 and importers said these increased costs have pushed Chinese tilapia farmers out of the business, unable to produce under tighter margins.
And even though frozen tilapia fillet imports to the US typically follow a seasonal trend, peaking in January, bottoming out in March and steadily increasing through the remainder of the year. Importers said China’s overall supply base is significantly shorter in 2013 than in years past which is likely to result in less tilapia fillet imports to the US for the remainder of the year.
As the industry rounds out the third quarter, US importers are currently taking buying positions from overseas packers. And as importers head into the latter part of the year, further price hikes may be on the horizon amid China’s decreased production in tandem with a seasonal buying period ahead of the Chinese New Year.
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(seafood.vasep.com.vn) According to Vietnam Customs, pangasius exports to Canada reached over 1 million USD in the first half of October 2024, a 33% decrease compared to the same period last year. However, by October 15, 2024, total pangasius exports to Canada had reached 32 million USD, reflecting a 10% increase compared to the same period in 2023.
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The positive business momentum in the domestic seafood sector could last into the first half of 2025, according to experts.
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While the price of 1 kg of shrimp hovers around 20 USD, the value of 1 kg of chitosan—extracted from shrimp—can soar to 500 USD. This highlights a significant challenge within the seafood processing industry.
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(seafood.vasep.com.vn) Sao Ta Foods Joint Stock Company (FIMEX VN - HoSE: FMC) concluded Q3/2024 with significant growth in revenue. Specifically, Sao Ta Food recorded revenue of VND 2,845 billion, a 58.6% increase year-on-year. The company's profit after tax reached VND 95 billion, up 6.2%.
VASEP's Seafood Export Report for the third quarter of 2024 provides a comprehensive overview of Vietnam's seafood export performance in the first nine months, with impressive results reaching $7.2 billion—an increase of 9% over the same period last year. In the third quarter alone, seafood exports grew by 15%, totaling $2.8 billion. This growth is attributed to a recovery in demand and prices in key markets such as the U.S. and China, as well as the competitive advantage of value-added products in markets like Japan and Australia.
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