[Seafood Source] Downward trend on pangasius prices expected to reverse couse in 2021
Vietnam’s pangasius prices are expected to bounce back from a two-year downward trend in 2021 due to an expectation of limited supply and higher demand.
The country exported pangasius worth USD 1.34 billion (EUR 1.1 billion) in the first 11 months of 2020, down 24 percent from a year earlier. The country’s total export value for 2020 is expected to decline 23 percent to USD 1.54 billion (EUR 1.3 billion), according to data from Vietnam Association of Seafood Exporters and Producers (VASEP).
Vietnam’s total pangasius production in the first 11 months of 2020 was 900,429 metric tons (MT), down 16.3 percent from the same period in 2019, as many farmers refrained from seeding due to prolonged low prices.
Pangasius prices in Mekong Delta have fluctuated recently due mainly to higher demand from China before year-end festivals, but tightened Chinese import inspections were expected to have an imminent impact on sales totals.
Vietnam Pangasius Association Chairman Truong Quoc Nghia said the downward trend of pangasius prices will come to an end in 2021 due mainly to supply-side issues. Many farmers were unable to expand production as prices remained low for an extended period in 2020, resulting in limited production, which will in turn cause prices to increase next year, Vietnam’s Customs News Online reported 20 December.
Furthermore, the global foodservice sector is expected to recover in 2021 once the COVID-19 pandemic is brought under control, according to the research division of Vietnam’s BIDV Securities Joint Stock Company. Pangasius products from Vietnam will have an edge in Europe as a result of the European Union-Vietnam Free Trade Agreement (EVFTA), which came into force in August 2020.
VNDIRECT Securities Corporation, another securities firm in Vietnam, shared the same opinion with the BIDV company putting hope for market recovery on global COVID-19 vaccination effort.
Reported by: Toan Dao (30th Dec 2020)
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