Pangasius prices close on tilapia, prompting switches from undercurrent news

BANGKOK, Thailand -- The increase in Vietnamese pangasius prices over recent months has closed the price gap on tilapia, causing some buyers to switch to the second species, sources at several exporters told Undercurrent News last week during the Thaifex - World of Food Asia show in Bangkok, Thailand.

"The [Pangasius] price is very near to tilapia. So many people buy tilapia instead, which is a better fillet," one exporter said, adding that the price difference between the two species was now around $0.30-0.40/kg.

Vietnamese supply of pangasius raw material -- driven by weather conditions in the first months of this year and a fingerling shortage -- has been insufficient to meet processors' demand, causing a historic price rise, sources at the show said. 

The wide difference between hotter temperatures than usual during the daytime and colder temperatures at night during the first months of this year caused a decrease in pangasius harvest, the exporter said.

"Prices are crazy. There isn't enough fish," the exporter told Undercurrent. "Every country across the world needs [pangasius] for the entry level fish," he added, pointing to strong global demand for the species. 

Prices for whole round pangasius fillet rose to around $3-$3.20 per kilogram, up about 30% year-on-year, the exporter told Undercurrent.

But a second Vietnamese exporter at Thaifex said that prices rose in April but have been stable in May, and are slightly easing as availability of raw material improves.

She quoted a well-trimmed pangasius fillet with 10% glazing CFR at $2.89/kg. Pangasius raw material prices in Vietnam might slightly fall in the coming weeks, which will be "good for buyers", she said.

More Vietnamese fish farmers are breeding pangasius because of the current high price levels, but authorities have told them to not breed the fish in unzoned areas as there are threats of disease outbreaks and reduced productivity, reported Vietnam Net.

In the first months of this year, prices for Vietnamese pangasius rose to a high not seen in years, driven partly by a shortage in fingerlings which could last into 2019.

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