Tra fish processing plant.

Pangasius farmers could face problems for excessive production

VIET NAM
Tuesday, January 08, 2019, 00:00 (GMT + 9)

The tra fish export sector was probably the most improved industry last year, but according to Việt Dragon Securities Company (VDSC), excessive production could cause excessive supplies and price drops.

VASEP has warned Chinese companies are now investing in tra production so Vietnamese producers and exporters need to have suitable plans. (Photo zing.vn)

Farmers hurried to raise tra fish as prices increased from the beginning of 2017, mainly due to fingerling and raw materials shortages.

Now, VDSC warns this situation could bring about raw materials oversupply when entering the harvest season, and the selling price of raw fish for factories could be reduced, VNS reported.

Pangasius export to the EU also has many positive signs.

This would mean great farm losses and this could oblige them to stop breeding tra for the next season, so they would lack raw materials for the next crop.

However, there are some positive signs for the sector.

VDSC thinks that, if the US-China trade war continues, Viet Nam could increase its market share in the US, replacing Chinese tilapia that currently accounts for 40 per cent of all fish imports to the US.

Besides, Viet Nam has passed the US Department of Agriculture (USDA) field tests, which is the most important step in the assessment process established by the USDA’s Food Safety and Inspection Service (FSIS). Consequently, VDSC expects the tra fish export volume to the US market to increase this year.

What is more, if Viet Nam-EU Free Trade Agreement (EVFTA) is approved, the import tariff for frozen tra fish fillets will be reduced from the current rate of 5.5 per cent to zero within three years. The rate for processed tra fillets will be reduced from 7 per cent to zero within seven years.

Viet Nam’s fish export value was around USD 2.3 billion for 2018, higher than the USD 1.8 billion recorded in 2017, according to the Việt Nam Association of Seafood Exporters and Producers (VASEP).

Pangasius fish is a genus of medium-large to very large shark catfishes native to fresh water in South and Southeast Asia. The term "pangasius" is sometimes used to specifically refer to the commercially important basa fish

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