Raw pangasius price: Reflect real market value and ensure benefits for the whole

In recent days, some local press posted information relating to the reduced price of pangasius causing confusions for both farmers and importers, especially European importers after the largest seafood exhibition in Brussels just ended.

At time of European Seafood Exposition happened from 3rd – 5th May 2011 at Brussels, Belgium, pangasius raw material prices were at record high. Raw pangasius cost paid by local processors was at VND29,000 per kilogram. At this time, frying price increased highly and harvesting was not at full season.

Pangasius farmers have been encouraged by high raw material price since the beginning of 2011. They still hoped that the price would keep rising to VND 30,000 per kilogram. However, currently, raw pangasius price has gone down to VND 27,300 – 27,500 per kilogram for fish with weight of 850 – 950g and VND 26,500 -26,700 for over the 1kg fish.

In fact, the drop in pangasius price from its current peak reflected truly the real market price and ensured the benefits of stakeholders in the industry. This drop was explained by the following reasons:

Many of pangasius farmers tried to hold their fish in ponds, waiting for the higher price. However, they hurriedly sold raw pangasius, when the price went down, due to fear that pangasius value would drop to below VND26,000 per kilogram;

The US$/VND exchange rate fell by VND/US$ 1,000 compared with the period that the pangasius price reached its peak of VND29,000 per kilogram, therefore, pangasius companies should reduce the cost of raw pangasius in an effort to keep the finished products price;

The feed meal price tended to gradually fall when Vietnam is coming in the new fishing harvest, leading to a drop in supplementary products;

The feed price was predicted to be stable in the coming time, causing regulated changes in pangasius price this week;

However, due to lack of raw materials, particularly, small-sized for exporting to EU, current fish price is unlikely to go down further. In contrast, it tends to rise to VND28,000 while many enterprises are in need of small-sized pangasius to perform orders singed. Recently, at the European Seafood Exhibition, the offer price of pangasius was at US$3.4 per kilogram, especially some enterprises signed contract with the price of US$3.5 per kilogram which is considered as selling price accepted by EU market after pangasius price decreased at this market for a long time. This selling price level is not expected by enterprises as all input costs have steadily risen from the beginning of this year.

Source: Pangasius Vietnam

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