A corner of tra fish processing line at the Multinational Investment and Development Joint Stock Company of Sao Mai Group. (Source: VNA) Hanoi (VNS/VNA) - The domestic tra fishindustry has faced challenges regarding the purchasing price on the domesticmarket as well exports due to high tariffs on the product in the US market,according to the Ministry of Agriculture and Rural Development (MARD).
In May, the purchasing price of tra fish continuedto decline in the Mekong Delta region, especially An Giang and DongThap provinces, the two largest tra fish producers and exporters inthe region, said the ministry.
The tra fish price in the region dropped by 1,000VND per kilo to 23,500-24,000 VND at the end of May and continued fallingto 20,000-21,000 VND per kilo.
According to MARD's Department of Farm ProduceProcessing and Development, the low price is due to firms raising their ownfish instead of buying from farmers. Processing companies have not signed anymore export contracts.
Last year, Vietnam recorded a tra fish export valueof 2.3 billion USD. With the high export value, farmers gained profits of about10,000 VND per kilo.
The high profit makes farmers to increase supply, he said,which has hit the purchasing price.
The reduction in the price of tra fish has alsoimpacted the demand and price of fingerlings. For instance, the price forfingerlings of tra fish dropped to 20,000-25,000 VND per kilo from70,000 VND at the beginning of this year.
The ministry also said the tra fish industry hasseen a reduction in exports since April after gaining at the start of the year,especially in exports to the US.
However, the industry could expect to see more exportopportunities to 10 member countries of the Comprehensive andProgressive Agreement for Trans-Pacific Partnership (CPTPP) becauselocal export seafood products will enjoy zero tariffs.
According to the Vietnam Association of Seafood Exporters andProducers (VASEP), in 2018, the export value of tra fish to the 10CPTPP countries reached 328.3 million USD, up 17.3 percent year on year.
Now, Mexico is the fifth largest importer ofVietnamese tra fish, after mainland China, Hong Kong, the EU, US andASEAN. The export value of tra and basa catfish to Mexico in thefirst four months of this year surged 31.5 percent year-on-year to 40.8 millionUSD. This is also the largest export market of Vietnamese tra fish inLatin America and in the 10 CPTPP countries.
Japan is also a promising market for local tra fish.
The total export value of Vietnamese tra fish toJapan increased by 37.6 percent year on year in 2018 and continued growth at38.6 percent year on year to 8.58 million USD in the first four months of thisyear. — VNS/VNA
VNA
