Whilst the association believes that demand for the product will increase, and overtake supply, it predicts that exports of pangasius will reach 360,000 mt in 2011, down 40 per cent compared to 2010.
The expected export value is US$1 bn.
Total pangasius production in 2011 is expected to reach 900,000 mt.
Despite the price being at a high level, VASEP says that farmers are concerned about breeding more pangasius to increase stocks, due to price fluctuations. Increasing feed costs have also been a concern, and have put many producers out of business.
On top of this, high interest rates have put many farmers of acquiring loans.
Mr Nguyen Huu Dzung, Vice Chairman of VASEP believed that pangasius production would take a turn for the better in 2011, with more producers focusing on quality production.
Deputy Minister of Agriculture and Rural Development Luong Le Phuong remained optimistic, saying that exports could still exceed expectations, if farmers and businesses worked together.
Mr Phuong supported the four solutions that VASEP and enterprises unified to provide, which were aimed at reviving the domestic pangasius industry as well as regulating its export markets for next year. Namely, rising the average export price through the management of export floor price, stabilising the raw material production, ensuring the supply – demand, enhancing the quality management in accordance with standards and boosting the advertisement and trade promotion.
In December 2010, VASEP and enterprises agreed the minimum export pangasius price to all markets in January 2011 as 3 US$ per kg for whitemeat pangasius and 2.05 US$ per kg for redmeat.
Rocky Road Ahead For Pangasius Production
VIET NAM - Pangasius exports were valued at US$1.4 bn for 2010, not quite reaching the predicted US$1.5 bn. The Vietnamese Association of Seafood Exporters and Producers (VASEP) has now said that 2011 could be an even worse year for 2011 exports.
