In the context of a volatile world economy, the supply shortage and skyrocketing tilapia prices in China open up great opportunities for Vietnamese seafood.

In the context of the global economy being subject to many fluctuations, the seafood market is not outside the influence. In particular, the price increase and supply shortage of tilapia in China have opened up great opportunities for Vietnamese pangasius in the international market.

China: Short supply, rising prices

Tilapia is one of the most popular whitefish species in many markets, including China and the United States. However, in the first quarter of 2024, tilapia prices in China increased significantly due to supply shortages. The tilapia industry is recovering after many farmers suspended operations last year because of low prices. Currently, tilapia prices at farms in Guangdong province have increased to about 11.40 yuan/kg (1.61 USD/kg) and 11.20 yuan/kg in Hainan province; much higher than the level of 8.5 yuan/kg in the same period last year.

Tilapia processing.

The scarcity of raw materials in China adds to the pressure on tilapia producers. The amount of fish in ponds in southern China continues to decline, and fish stocked late last year have met harvest standards and are expected to be released to the market in June 2024. However, farmers are still cautious about investing in new sources of tilapia, due to concerns about price fluctuations and market demand. This leads to a situation of insufficient supply and demand, causing tilapia prices to continue to remain high.

The shortage of tilapia supply in China has created favorable conditions for Vietnamese pangasius exports to the United States. Pangasius is cheaper than many other freshwater fish species, including farmed carp, and has become the top choice for many consumers cooking at home as well as for mass-market restaurant chains in China.

Yu Ni Zai Yi Qi restaurant in Beijing and restaurant chain 7 Fresh quickly introduced pangasius to their menus; with grilled fish meals priced from 22.90 yuan (3.20 USD) to 26.90 yuan (3.76 USD). In addition, frozen pangasius fillets are also popular in the children's food market in China because they are clean and soft white-fleshed fish, trusted by many parents. Sales of pangasius and tilapia have increased in recent months.

Besides, the popularity of pangasius in the Chinese market does not stop at restaurants. Frozen pangasius products are also popular in supermarkets, becoming the top choice of many families. The combination of quality and affordable price has helped Vietnamese pangasius make a strong mark on the Chinese market.

United States: Opportunity has no end in sight

In the first quarter of 2024, the United States remained the world's largest importer of tilapia, with imports of more than 55 million USD, down 3% over the same period last year. However, supplies from key suppliers such as Honduras, Mexico and Costa Rica are in short supply, leading to the lowest level of US imports in 12 years. This has created an opportunity for Vietnamese pangasius to become a potential alternative.

During the same period, the United States imported 19,600 tons of frozen tilapia fillets from China worth 73.6 million USD, down 13% in volume and 8% in value compared to the same period in 2023. In addition, in March 2024, the United States imported 1,784 tons of fresh tilapia, down 200% over the same period last year. This shortage has opened up opportunities for Vietnamese pangasius to enter the US market.

These numbers show scarcity and price pressure for tilapia in the United States, opening up great opportunities for Vietnamese pangasius. With good quality and competitive prices, Vietnamese pangasius has quickly dominated the market share, becoming one of the popular seafood products in the US market.

Many forecasts show that in the second quarter of 2024, tilapia supply from China will recover, but there will still be a shortage, leading to high prices. This can help Vietnamese pangasius continue to take advantage of opportunities to expand the market. This requires pangasius exporters to continue maintaining product quality and improving production processes to meet the increasing demands of the international market.

In addition, pangasius producers and exporters need to focus on branding and product marketing to increase consumer recognition and trust. Transparency in the production process and commitment to quality will be key factors to help Vietnamese pangasius compete effectively in the international market.

The fluctuations in supply and price of tilapia and pangasius markets are clear evidence of the complexity and unpredictability of the global seafood market. The price increase and supply shortage of tilapia in China not only create challenges but also open up new opportunities for Vietnamese pangasius. With good quality and competitive prices, Vietnamese pangasius has been affirming its position in the international market, especially in the United States. In this context, seizing opportunities and quickly adapting to market fluctuations is the key for Vietnamese pangasius producers and exporters to maintain and expand their market share.

Source: Nong Nghiep Newspaper