Pangasius exports predicted to recover from third quarter

Data from the Vietnam Association of Seafood Exporters and Producers (VASEP) showed that in the first two months of this year, revenue from seafood export topped US$1.1 billion, down 26% year on year, with pangasius exports dropping 38% to US$240 million.

According to Vietcombank Securities Limited Company (VCBS), the demand for pangasius plummeted from the fourth quarter of last year after positive signs in the beginning of the year. A fall of 20-30% was seen in the production and export revenue of the product from last November due to high inventories and inflation in importing countries.

The downturn trend continued in the first month of 2023, with respective fall of 51 and 60% over the same period last year.

However, pangasius exports increased slightly at 4% in February to US$662 million. But the VCBS predicted that the pangasius demand will continue to decrease in the majority of the markets until the third quarter when festive events in year-end come and the Chinese market is opening.

While high feed prices and extreme weather conditions are effecting small-scaled farms, large-scaled businesses are eying great opportunities to expand their market share thanks to their self-supply of input materials and the application of a closed production process, according to the VCBS.

The VCBS reported that in 2022, pangasius exports hit a record of US$2.44 billion despite the high feed price. In the year, strong growth of at least 30% was seen in export revenue generated from the majority of the markets, especially some Middle East countries at 115-429%.

The firm held that 2023 will still be a good year for businesses that can promote their advantages in material supply.

Exporters held that after a long period of decline in revenue due to low prices in the first half of this year, domestic exporters will enjoy recovery in the third quarter.