Pangasius exports hit by global inflation
The increasing inflation in most of the large destinations of Vietnamese pangasius has made the demand slow. Over the last nine months, Vietnam’s pangasius exports just reached USD 164 million, the lowest level in the first nine months of the year.
According to VASEP, in September, Vietnam’s pangasius exports reached USD 164 million, the lowest level in the first nine months of the year. This proves that inflation was hitting the fisheries without exeption.
Inflation and currency devaluation in many major importing markets moved the needle on the segments of medium or low income customers, making them carefully consider and calculate the expenditure.
Pangasius exports declined in most of the major markets, even in the “most optimistic” market of Vietnam, China.
In September alone, pangasius exports to China reached USD 49 million, down from August but up 190% as compared to the same period last year.
By the end of quarter III, pangasius exports to China reached USD 590 million, up 111% from the same period last year and accounting for 30% of the total pangasius export value.
The market demand grew as highly as before the pandemic, but China’s yuan fell down to its weakest level, a 30-year low, against the dollar, making importers reduce their purchases from foreign partners, VASEP evaluated.
Likewise, the US and EU markets are facing bigger challenges amid the record high inflation.
Over the last nine months, pangasius exports to the US increased by 41% as compared to the same period last year, but still lower than August. By the end of quarter III, pangasius exports to the US reached USD 454 million, up 83% and accounting for 23% of the total pangasius export value of Vietnam.
The euro is falling down in the EU market, a 20-year low, against the dollar, making the demand for fish in this market reduce sharply, pangasius included.
Thus, in September, pangasius exports to the EU reduced by USD 3 million from August; however, the accumulated value of pangasius going to the EU in the first nine months reached nearly USD 160 million, twice as much as the same period last year.
The UK market is struggling with inflation and energy costs driven by the strike between Russia and Ukraine. The pound fell to its weakest rate since 1985, making sales of Vietnamese pangasius in this market slow down.
And yet, pangasius exports to this market reached nearly USD 50 million in the first nine months, up 30%.
Vietnam’s total pangasius exports reached nearly USD 2 billion in the first nine months, up 83% from the same period last year, thanks to the high growth rate in the first eight months of the year.
“Even though pangasius exports in quarter IV might not be as good as earlier this year, pangasius exports of the whole year still can reach USD 2.5 billion, a new record high”, anticipated VASEP.