MARKET’S OSTACELS
According to VASEP, seafood exports in October 2023 are estimated to reach over 863 million USD, down slightly by 5% compared to the same period in 2022. Accumulated in 10 months, seafood exports reached nearly 7.5 billion USD, down 20% compared to the same period in 2022. with the same period last year.
In October 2023, shrimp exports reached about 320 million USD, down only 11% compared to October 2022; By the end of October 2023, the export turnover of this product group reached over 2.8 billion USD, accounting for 38% of the total seafood export turnover (down 24% over the same period last year). Businesses said that the price of shrimp imports into the US is still much lower than the same period in 2022. In the US, EU and China, the average import price in 2023 has decreased by 13.4%, 10% respectively. and 2.7%. This is the main reason why seafood exports have stagnated.
With pangasius products, by the end of October, exports reached over 1.5 billion USD, down 28% over the same period last year. Slow consumption is explained as the reason for high inventory. However, in the last months of the year, the export of this industry received many positive signals. According to information from VASEP, demand for pangasius in the US market is also recovering. Currently, the US Department of Agriculture (USDA) is looking to purchase 5.96 million pounds of frozen pangasius and catfish fillets for use in domestic food distribution programs. This is the Department’s third largest catfish purchase in 2023, following the purchase of 6.2 million pounds of fish fillets unbreaded plain leather, with a total value of 41.8 million USD (38 million EUR) in March 2023.
Consumption of fish, squid, octopus and some high-end seafood continues to be affected by economic downturns, high inflation, and consumers’ cautious spending. By the end of October, tuna exports reached 704 million USD, down 20% over the same period last year; Crab exports reached 164 million USD, down 12%, squid and octopus exports reached 540 million USD, down 14%. To make popular and premium seafood products accessible to most consumers, seafood processors and traders are tending to package products in smaller sizes to suit everyone’s budget. income class. This trend is expected to stimulate better demand for seafood in the near future.
Analysts say that inflation and economic recession due to war and conflict cause people around the world to “tighten their belts”, and import businesses also operate moderately. High-end products such as tuna, squid, and octopus are difficult to sell, while products in the mid-range segment are forced to sharply reduce prices to stimulate demand.
Difficulties in consumption have strongly affected the revenue of seafood export enterprises. Minh Phu Seafood Group has announced its financial report for the third quarter of 2023 with net revenue reaching 2,993 billion VND, down 41% over the same period last year, gross profit down up to 60%. As a result, Minh Phu reported a loss of 26 billion VND in the third quarter of 2023, compared to a profit of up to 332 billion VND in the same period last year. Many other export enterprises are also struggling to overcome the “price storm”
and consumption difficulties.
The US is Vietnam’s second largest pangasius consumption market (after China & Hong Kong markets). In the third quarter of 2023, although pangasius export turnover to this market still decreased compared to the same period last year (-32%), the decline and gap were narrower compared to the previous two quarters (compared to the previous two quarters). respectively -64% and -58%). The “wet” US market also signals a recovery in the last months of the year, especially to serve the Christmas and New Year festivals.
Seafood exports to Europe are gradually opening up. Canned fruit exports to the EU increased again. Germany and the Netherlands have high import growth rates of 45% and 170% respectively. Canned whole grain exports to Italy increased by 421%; Exports to Israel also increased by nearly 200%.
Optimistic signs about seafood exports are also shown in the fact that stocks of seafood businesses receive a lot of attention from investors. In the third quarter of 2023, IDI shares (IDI Multinational Investment and Development Joint Stock Company), CMX shares (Camimex Group Joint Stock Company), ANV shares (Nam Viet Joint Stock Company)… reached high levels. increase ability. IDI price increased by 4.7%, CMX increased by 6.3% (while VN-Index increased by 3%).
(Source: thuysanvietnam.com.vn)