Vietnam Tra fish accounting for 99.9 Pct of global market

Vietnam’s pangasius – genus of catfish normally called tra fish – has dominated the world consumer market. Not only that, tra catfish also puzzles U.S. traders as they cannot understand why Vietnam can supply such a large volume of high-quality fish meeting global standards at very competitive prices.

It is not a surprise when pangasius is one of Top 10 seafood consumed in the United States in 2009.

Just a few years ago, Vietnam did not pay due attention to robust export growth of pangasius. Even, a top leader of the Vietnamese seafood sector believed that the fish would cross all barriers on the market.

The Pangasius Aquaculture Dialogues (PAD) initiated by the World Wildlife Fund (WWF) have created new standards allowing pangasius producers certified by the Aquaculture Stewardship Council (ASC). The new standard, with the participation of WWF, will promote the reputation of pangasius – the last big challenge of this fish.

Mr David Graham of the Birds Eye Iglo, one of 600 members working on the new standards, said that WWF’s new standards will help improve the consumer confidence in this type of unknown fish.

Tra catfish can be provided for any need. Vietnam’s output continues to surprise many people but many other countries are trying to culture this fish species, including China, Thailand and India. When they have a strong foothold on their markets, the output will grow at an extraordinary pace.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), at present, Vietnam’s tra catfish accounts for 99.9 % of the global market share. VASEP forecasts the market leadership of the Vietnamese pangasius will continue in many years to come.

According to a plan released by the Ministry of Agriculture and Rural Development, the catfish breeding area will be doubled from the current rate to some 13,000 hectares by 2020; output is estimated to reach approximately 2 million tonnes and exports are projected to bring in more than US$2 billion. Many economists pointed out that the area for tra catfish culturing is even further enlarged if water surfaces along the Tien River and Hau rivers are effectively utilised. Water condition management also helps higher productivity and better health. In Vietnam, the catfish has been cultured for nearly 10 years in southern provinces like Vinh Long, An Giang, Can Tho, Tien Giang and Dong Thap. Vietnam is applying GlobalGAP process to the culturing process.

Mr Duong Ngoc Minh, Vice President of VASEP, said the association is putting forth proposals for establishment of a quality protection and price stabilization fund. Accordingly, companies will contribute 5-10 cents for each kilo of exported tra catfish to the fund which will support companies and breeders to apply the GlobalGAP process, settle trade disputes, invest in science and technology, and stabilise prices for farmers.

Tran Van Hung, Chairman of the Board of Directors of Dong Thap province-based Hung Ca Co., Ltd, said GlobalGAP process requires an addition cost of 3 % but generates additional 12 % in value, citing his 30 hectare farms as evidence. He said his company had signed a contract to sell 1,000 tons of GlobalGAP-certified tra catfish with a price higher than the market rate by 30 cents per kilo. – VCCI

Tags: Vietnam Tra fish