Processing catfish for export at Nam Viet Company. Photo: Provided by the company.

Market shifts toward China

According to Duong Nghia Quoc, Chairman of the Vietnam Catfish Association, in 2023, the catfish sector experienced fluctuations with a decrease in export prices and an increase in input material prices. Additionally, global economic downturns and political conflicts have significantly impacted the production and business activities of Vietnamese catfish export enterprises.

As of October 31, 2023, the newly farmed catfish area is 5,319 hectares (an increase of 85.36% compared to the same period in 2022), the harvested area is 3,663 hectares (an increase of 34.4% compared to the same period in 2022), and the production reaches 1,336,346 tons (an increase of 61.29% compared to the same period in 2022) with an average productivity of 365 tons per hectare (compared to 291 tons per hectare in the same period in 2022).

Most indicators serving catfish export production have increased, but the export turnover of this product has decreased. According to statistics from Vietnam Customs, the total export turnover of catfish until October 15, 2023, reached only US$1.434 billion, a decrease of 30.4% compared to the same period in 2022. China is the leading market, followed by the US, the third is the CPTPP member countries, and the fourth is the EU.

Quoc analyzed that Vietnamese catfish currently exported to more than 150 countries and territories. Main markets include: the US, the EU, China, ASEAN, and South America. The market structure for catfish exports has changed, with a trend shifting towards the Chinese market, accounting for about 29%, up from 11% in 2015, and the EU market has decreased from 18% in 2015 to about 9% in 2022; the US market remains relatively stable, averaging about 20%.

Assessing the catfish export activities of the largest catfish hub in the country, Nguyen Van Vu Minh, Director of the Department of Agriculture and Rural Development of Dong Thap Province, stated that catfish was one of the key export products of Dong Thap, accounting for over 65% of the export turnover.

Dong Thap currently has 27 catfish processing enterprises for export, with a total designed capacity of over 700,000 tons per year, attracting over 20,000 laborers and meeting all safety production conditions both domestically and internationally. In the first three months of the year, the production and consumption of catfish by enterprises were relatively favorable. However, since the end of the first quarter of 2023, due to difficulties in catfish export, the number of export orders has decreased, while processed products are still in stock, leading to a relatively slow consumption of catfish.

The export turnover to most markets has decreased compared to the same period in 2022: China accounts for 26.3% (a decrease of 37%); the US accounts for 24.5% (a decrease of 56%), and the EU accounts for 11.3% (a decrease of 18%). In the first 10 months of 2023, the estimated seafood export volume was 213,547 tons; the estimated turnover is US$534.38 million (a decrease of 32% compared to the same period in 2022).

Businesses propose overcoming difficulties

Assessing the catfish industry in 2023, Vo Hung Dung, Vice Chairman cum General Secretary of the Vietnam Catfish Association, stated that the entire industry was collectively affected by the general situation of inflation, global economic downturn, leading to reduced consumer demand. Besides, raw fish prices are low, production costs are increasing, and businesses and fish farmers face difficulties in production capital.

Since the beginning of the second quarter, catfish exports have tended to decrease until the end of August, with signs of recovery from September 2023, especially in the US and Chinese markets, as well as Brazil. Positive demand is expected as we enter the season for end-of-year consumption and major festivals, which will help Vietnamese catfish export enterprises receive more orders in the last months of 2023.

Based on the market dynamics, the Vietnam Catfish Association also highlighted some information about the export market trends in the coming time: changing consumer trends, prioritizing convenient and reasonably priced products; maintaining traditional markets, and expanding into new markets alongside the potential growth of the Chinese market to ensure the negotiating strength of the catfish industry in the international market.

To address these challenges and support businesses in seizing opportunities, many enterprises propose the formation of concentrated catfish breeding areas; compliance with national regulations on disease monitoring and residue monitoring for input materials; implementation of stable pricing policies for feed, stabilizing production costs; and application of standards in farming such as Global Gap, ASC, BAP, and VietGap.

Representing catfish export businesses, the leadership of the Vietnam Catfish Association stated that they would propose solutions to support the industry to the Ministry of Agriculture and Rural Development. In 2024, the association will intensify research on the transfer of scientific developments in catfish breeding, build logistics infrastructure to strengthen long-term import and export service activities; mobilize farmers to participate in partnerships to create strength and stability in the quality of the industry.