Vietnamese Basa Fish Prices Continue to Rise due to Shortage of Raw Materials

basa fish importing and exporting

Since the beginning of the year, basa fish prices have continued to rise, with significant demand in major markets such as the United States, China and the European Union. However, there are many potential downsides to the booming market growth and timely and appropriate solutions are needed to maintain sustainable balsa processing and exports.

　　The market is getting better

　　Information from the Vietnam Association of Seafood Exporters and Producers (VASEP) and several balsa processing and exporting enterprises shows that all export markets for balsa are now improving; thus bringing the price of balsa to VND29,500-30,000/kg, up VND4,000-5,000/kg compared to the last months of 2021.

　　A representative of the Ministry of Agriculture and Rural Development of Can Tho Province shared: In Can Tho, due to the long-term impact of the new crown epidemic, many institutions suspended/raised species while the rest raised fish moderately, so the number of fish is limited and not much raw material (size 0.8-1kg/head) is supplied to the export market. Resources are scarce, most of them are 0.5-0.7 kg/fish. In Thot Not and Vinh Thanh areas, some farmers have reached harvest size but have not sold their fish when prices have risen sharply.

　　"From the beginning of the year to now, the price of balsa fish has gone up very high. This is an opportunity for individuals and businesses to continue to invest and develop their production", said Mr. Nhu Van Can, Director General of Aquaculture Department (Directorate General of Fisheries, Ministry of Agriculture and Rural Development).

　　Looking at the export opportunities for balsa fish throughout 2022, Ms. Do Dong Lan, Deputy Secretary General of Warsaw International, analyzed: "The import market has recovered and is growing well. Four major markets, China (31%), the United States (23%), the Trans-Pacific Partnership Comprehensive Progress Agreement (13%) and the European Union (6.6%), are expected to grow strongly in 2022. Balsa exports are expected to increase by 20-25% in 2022 compared to 2021; catfish export prices will increase by about 5%".

　　Similarly, a representative of the Vietnam Balsa Fish Association said: 2022-2023 will have many advantages in terms of raw material prices and export prices of balsa fish. From 2022 to the end of 2023, balsa fish production will again grow strongly. Freshwater farmed fish (balsa) from Vietnam will have a place in the world market as gasoline prices rise, world seafish prices increase, and marine fishing has been and will continue to be restricted.

　　Pay attention to the balance of supply and demand

　　In addition to the favorable factors for the development of the balsa fish industry this year, Mr. Nhu Van Can also pointed out some difficulties and challenges. In terms of weather and climate, the total flow from the upper Mekong River to the Mekong Delta in the dry months of 2022 could be 10-15% lower than the multi-year average. Seawater intrusion in the Mekong Delta is higher than the multi-year average and is likely to be concentrated between February and April. Reduced water availability and potential disease risk.

　　

From a market perspective, the new generation of FTAs to which Vietnam is a party presents both challenges and opportunities for the continued export of Vietnamese balsa fish products to the EU and US markets.

The balsa fish industry has to work hard to meet. "Direct USDA Food Safety and Inspection Service (FSIS) inspections of the entire balsa fish chain will also need to resume after the New Crown pandemic is under control. Please take note," said Mr. Nhu Van Can.

　　

Given the opportunities and challenges still facing the balsa fish industry, Ms. To Tuong Lan stressed the need for relevant agencies in the fisheries sector and partners involved in the production chain to assess and position farmers.

That is to balance supply and demand in order to increase the profitability and value of the balsa fish industry. "After the New Crown outbreak, although production activities have resumed, the outbreak is not over yet and this is still a challenge for the supply chain. Production and transportation costs have risen and the shipping situation still needs to be actively addressed", said Ms. Lang.

　　

Executives at processing plants warned that some merchants may experience a shortage of balsa and have therefore raised their purchase prices to stimulate farmers to increase farming.

When farmers invest heavily in farming, resulting in an oversupply that causes prices to fall, merchants will benefit because they can buy raw materials that enter the market later at a lower price.