CHANGING THE MINDSET FOR EXPORTING OF PANGASIUS IN THE EU: INCREASE IN PRICE, INCREASE IN QUALITY

In the first four months of 2017, total export of processed pangasius to the EU market increased sharply: 89.5% over the same period last year. In particular, processed pangasius products (code HS16) exported to Spain increased more than 1.096%, to the Netherlands increased 228.3% over the same period in 2016.This figure e shift towards accessing the EU market by increasing high quality products are showing to be the right solution for enterprises. Obviously, the raw product, low price is not the factors that attract consumers of this area.
Thus, in the past 6 years (from 2011), export of pangasius to the EU market decreased by 1-19%. Of which 97-98% of export pangasius products are in the form of frozen pheasants with low export price. It is time for Pangasius exporters to this market to change their strategy to gradually increase export value.
Back in workshop “Opportunities and Challenges for Vietnam Exporters” held by the Trade Promotion Agency (Ministry of Industry and Trade) in late 2016 in Hanoi, Jean Charles Diener – Founder of OFCO Sourcing Vietnam said that Vietnam pangasius exporters have approached the EU in a wrong way. In Spain – one of the five largest pangasius import markets in this region, the average import price of $ 3.4 / kg in 2003-2005 but now the price of pangasius is only $ 2- $ 2.2 in 2013. The price is so low that EU exporters and retailers are not profitable, together with unimproved quality has resulted in loss of market share. Then, competition with low prices and not focused on increasing the proportion of high quality products is going in the wrong direction.
Vietnamese pangasius is recognized for its affordable strengths, aromatic flavor, boneless and easy to process, strong competition with native white fish products. However, the cheap criteria have caused Vietnam pangasius image to Germany, France, Spain become negative. They strike the psychology of Vietnam’s pangasius industry as unmanaged and problematic in terms of quality, food safety and environmental, health and social security concerns. This campaign focused in a number of countries from 2008 to 2011 has caused in just a few weeks, the demand for tra fish in North Europe seriously reduced, consumption decreased from 3-4 times. In early 2017, Spanish television continued to hit the “weakness” of the price of pangasius Vietnam.
Furthermore, according to the the comments and arguments of some experts say that the price is not “attractive” for European consumers is true. Many other seafood products such as white fish, salmon and tuna are priced 3-10 times higher than frozen pangasius are still selling well in many European markets. With the low price as many years ago, Vietnamese pangasius is falling into the retail segment for the low income people, the elderly despite the fact that the products could be completely present in many other segments.
In the first four months of this year, value-added products (code: HS) exported to the top two import markets in the region were: Netherlands and Spain, have received strong growth. This is a good sign for exporter, showing the shift of some enterprises is correct.
Compared to the average price of US $ 1.4 – 3.65 for frozen fillet (code HS 0304), processed products (code HS 16) with average export price from 3.85 – USD 5.65 / kg are being sold well in some markets. The product of pangasius rolls fried flour; Pangasius rolls with sauce, tomato, mango, pineapple; Pangasius skewered with spices exported to Germany, Portion frozen pangasius export to Spain; Pangasius seasoned with frozen spices; Frozen pangasius nuggets exported to Netherlands with a good price from 4.45 to 5.50 USD / kg. In the first four months of this year, export processed poultry (HS 16) to four major export markets in the EU: Netherlands, Spain, Germany, Belgium is quite active.
Back to the analysis of Jean Charles Diener said that until today, the growth of catfish Vietnam is by expanding new markets rather than promoting sales, raising prices and improving the products. It is time for exporters to change their strategy in the EU market. Six years ago, this is the largest export market of Vietnam pangasius and now there are many potential but should go the right way.
Ta Ha – According to Vasep