Alliance Foods, Inc.

Numerous pangasius processors in the Mekong Delta region will be forced to suspend their operation in early October due to serious shortage of unprocessed materials, said Duong Ngoc Minh, vice chairman of the

Vietnam Association of Seafood Exporters and Producers.

 

While as many as 30 processors out of total 70 pangasius processors have their own pangasius ponds, their output of unprocessed pangasius is meeting only 30% of their production capacity, Mr. Minh said.

 

The remaining other processors are relying on supply from farmers in the delta. However, farmers’ supply of pangasius fish has dropped sharply due to the low prices of the unprocessed fish during the past few years, he noted.

 

According to a survey, the total unprocessed of pangasius will be 50,000 tons for the fourth quarter, meeting just one sixth of the total demand of the processors in the region, Minh said.

 

The shortage of pangasius fish will continue in 2014 as the supply of unprocessed pangasius will also be between 500,000 tons and 600,000 tons, meeting 30%-40% of the total demand of the processors next year, he noted.

 

During the past two years, prices of unprocessed pangasius are lower by the production costs, making farmers in the Mekong Delta to scale down or stop raising of the fish.

 

Due to shortage of input material, a number of pangasius processors have failed to fulfill their export contracts, Mr. Minh added.

 

Pangasius is among Vietnam’s export staples. In 2013, the country is predicted to rake in $1.5 billion from the fish export, down from $1.7 billion last year