VIETNAMPANGASIUS

2012 -2013

VIETNAMVIETNAMPANGASIUS PANGASIUS

2012 2012 --2013 2013

Nguyen Huu Dzung, Ph.D.

Vice PresidentVietnam Association of Seafood Exporters and Producers (VASEP)

Vigo Vigo –– September 30September 30thth, 2013, 2013

FAO-CONXEMAR WORLD WHITEFISH CONGRESS

Pangasius, an excellent food!

33

CONTENTSCONTENTS

1. Vietnam Pangasius Export 2012-13

2. Pangasius Sustainable Development

3. Present Development Programmes

44

1. VIETNAM PANGASIUS

EXPORT 2012-13

Vietnam Fisheries 2012Vietnam Fisheries 2012

•• Total aquatic production: 5,740,000 tons (+5.2% to 2011)Total aquatic production: 5,740,000 tons (+5.2% to 2011)

•• Fishing volume: 2,630,000 tons (+4.3%), incl. marine catch Fishing volume: 2,630,000 tons (+4.3%), incl. marine catch

2.42 mill. tons (+4.8%)2.42 mill. tons (+4.8%)

•• Aquaculture volume: 3,11 mill. tons (+6.1%), incl. fishes Aquaculture volume: 3,11 mill. tons (+6.1%), incl. fishes --4,34 4,34

mill. tons (+ 5.3%), shrimp 633,000 ton (+ 0,3%)mill. tons (+ 5.3%), shrimp 633,000 ton (+ 0,3%)

•• Export value: 6.118 USD billion (+0.3%)Export value: 6.118 USD billion (+0.3%)

•• Fisheries sector forms 4 % GDPFisheries sector forms 4 % GDP

•• Supplies 40% of animal protein Supplies 40% of animal protein

•• Creates approximately 4 million jobsCreates approximately 4 million jobs

66

Vietnam Fisheries ProductionVietnam Fisheries Production

5.745

5.200

4.8505.126

4.5804.160

1.3441.338

1.5701.669

1.8282.003

2.4352.648

2.8593.074

3.432

3.696

0

1000

2000

3000

4000

5000

6000

7000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

1,000 MT

Wild catch Aquaculture

Vietnam Aquaculture VolumeVietnam Aquaculture Volume

3,1123,000

2,5702,707

2,2402,085

415 411481 537

615722 710

1,0031,110

1,150

1,437

1,694

0

500

1000

1500

2000

2500

3000

3500

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

1,000 MT

Aquaculture

88

Vietnam Aquaculture 2012Vietnam Aquaculture 2012

• Farming area was 1,06 mill. ha (+ 0,7% compared to 2011).

• Total production 3.11 mill. tons (+6.1%); contributes 54.2% to

fisheries volume

• Main species: shrimp – 476,000 tons (-1.0%), Pangasius – 1.2

mill. tons (+ 5%)

• Pangasius farming difficult, as farmers are lacking capital

sources.

• Increased role of white leg shrimp (5.04% farming area,

35.60% of total volume) compared to black tiger (94.96% area

but only 64.40% shrimp production)

• Shrimp disease affected 100,700 ha/657,000 ha due to white

spot, yellow head and especially EMS.

• Many farmers are applying SQF-1000, BAP, Global G.A.P

standards.

99

• 567 seafood industrial processing plants

• 455 plants qualified for exporting to the EU (compared to 1999:

17 only)

• More than 550 plants are meeting national standards of hygiene

and safety, including GMP, SSOP, HACCP

• Processed seafood volume was over 1,500,000 tons

• Lacking of running capital, weak access possibility to the bank

• Shortage of raw materials bigger from year to year

• Imported seafood for re-processing increased

• Product diversification enlarged, value-added products accepted

by many supermarket chains in the US, EU & Japan

Seafood Processing Industry 2012

10101010

%

Vietnam Seafood Export

368456550670780971

3,3483,762

4,5004,250

5,033

6,1346,118

2,4012,240

1,478

817

2,739

1,7772,023

-5.7

21.5

0.3

18.4

5

16

2219.6

12.4

52

22.2

14.1

7.210.7

12.5

20

1921

24

21

0

1000

2000

3000

4000

5000

6000

7000

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

-10

0

10

20

30

40

50

60Export valueGrowth rate

Million USD

1111

Export Products Structure 2012

(By value)

Tuna

9.3%

Frozen

shrimp

36.5%

Other

crustacean

1.9%

Pangasius

28.4%

Mollusks

9.5%

Other

fishes

14.5%

1212

Vietnam Seafood Export Products, 2012Vietnam Seafood Export Products, 2012

Product groupsValue

(USD mill.)

Percentage

(%)

Compared to

2011 (%)

Shrimp 2,237.435 36.47 -6.6

Pangasius 1,744.769 28.44 -3.4

Tuna 569.406 9.28 +50.1

Other marine fishes 886.660 14.45 +21.1

Mollusks 579.899 9.45 -3.7

Other crustaceans 116.158 1.89 +5.9

Total 6,134.328 100.00 +0.3

1313

Products Structure, Jan - Aug. 2013 (By Value)

1414

Markets Structure Jan - Aug. 2013 (By Value)

1515

Vietnam Farmed PangasiusVietnam Farmed Pangasius

•• The World Fastest Development Farmed FishThe World Fastest Development Farmed Fish

•• Pangasius Pangasius is species of biggest volume of Vietnam (is species of biggest volume of Vietnam (1.35 1.35

mill. MTmill. MT)), took 45% national farmed fish production , took 45% national farmed fish production

•• Export value of Pangasius in 2012 was Export value of Pangasius in 2012 was USDUSD 1.744 bill.1.744 bill.

•• PangasiuPangasius s farms certified by farms certified by BAP, Global GAP,BAP, Global GAP,……

•• First 22 PangasiuFirst 22 Pangasiuss farms have been ASC certifiedfarms have been ASC certified

•• More modern farming technology applied, included bioMore modern farming technology applied, included bio--

technologiestechnologies

•• Most vertically integrated farmed fish in VietnamMost vertically integrated farmed fish in Vietnam

1616

In 12 years (2000-2012) Vietnam Pangasius:

• Farming areas increased 5 times, reached 6,000 ha

• Annual commercial production of raw fish increased 35 times,

from 37,500 MT to 1,350,000 MT (2011)

• Volume of exported Pangasius fillets jumped-up more than

40 times, from 17,000 MT to over 660,000 MT.

• Export revenue increased 45 times, from US$ 40 mill. to US$

1,856 mill (2011).

• After 6 years 2001-2007 of fast growing, from 2008 up to now

Pangasius production & export are almost at stable levels

• Decreased import to EU markets.

• Export to 136 markets in over the world.

In 12 years (2000-2012) Vietnam Pangasius:

• Farming areas increased 5 times, reached 6,000 ha

• Annual commercial production of raw fish increased 35 times,

from 37,500 MT to 1,350,000 MT (2011)

• Volume of exported Pangasius fillets jumped-up more than

40 times, from 17,000 MT to over 660,000 MT.

• Export revenue increased 45 times, from US$ 40 mill. to US$

1,856 mill (2011).

• After 6 years 2001-2007 of fast growing, from 2008 up to now

Pangasius production & export are almost at stable levels

• Decreased import to EU markets.

•• Export to 136 markets in over the world. Export to 136 markets in over the world.

Vietnam Pangasius StoryVietnam Pangasius StoryVietnam Pangasius Story

1717

PangasiusPangasius Export Volume, MTExport Volume, MT

22,422

55,172

123,212

172,871

224,311 224,073 221,939

6,680

659,397

607,665640,829

386,870

286,600

140,707

82,96233,304

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

2003 2004 2005 2006 2007 2008 2009 2010 2011

EU Total

Vietnam Pangasius Industry 2011Vietnam Pangasius Industry 2011 1818

Pangasius Export Value, 2003Pangasius Export Value, 2003--1212

Vietnam Pangasius Export Market, 2012 Vietnam Pangasius Export Market, 2012 Vietnam Pangasius Export Market, 2012

19

MarketsValue

(USD million)

Share

(%)

Comp. to 2011

(%)

EU 425.836 24,4 -19,1

• Spain 86.710 5,0 -20,3

• Netherland 68.437 3,9 -22,3

•Germany 57.435 3,3 -35,0

•UK 36.165 2,1 -2,2

USA 358.865 20,6 +8,2

ASEAN 110.407 6,3 -0,4

Mexico 101.506 5,8 -6,9

Brazil 79.099 4,5 -6,4

China & HK 72.967 4,2 +31,5

Arab Saudi 52,295 3,0 -10,7

Columbia 52,291 3,0 -0,004

Other markets 491,503 28,2 +3,0

Total 1,744.769 100 -3,4

Pangasius Raw and Value-added 2012Value-added Ratio 2012: 0.68% !!!

Pangasius Raw and ValuePangasius Raw and Value--added 2012added 2012ValueValue--added Ratio 2012: 0.68%added Ratio 2012: 0.68% !!!!!!

20

Frozen fillet and other raw Value-added products

Nr Markets

Value

(mill.

USD)

Share

(%) Nr Markets

Value

(mill.

USD)

Share

(%)

1 USA 358.536 20.69 1 Netherland 4.396 36.932 Mexico 101.503 5.86 2 Germany 1.654 13.893 Spain 86.710 5.00 3 Australia 1.270 10.674 Brazil 79.090 4.56 4 Singapore 1.045 8.785 China & HK 72.696 4.20 5 Switzerland 0.704 5.916 Netherland 64.041 3.70 6 Portugal 0.506 4.257 Germany 55.781 3.22 7 Arab Saudi 0.349 2.938 Russia 53.991 3.12 8 USA 0.329 2.779 Columbia 52.291 3.02 9 Belgium 0.320 2.69

10 Arab Saudi 51.946 3.00 10 China & HK 0.271 2.27Sub total 976,585 56.36 Sub total 10.844 91.09

Other markets 756,279 43.64 Other markets 1.061 8.91

Total 1,732.864 100.00 Total 11.905 100,00

2121

Pangasius Markets, Jan – Aug. 2013 (By Value)

2222

2. PANGASIUS

SUSTAINABLE

DEVELOPMENT

ChallengesChallenges

�� Controlling production in an ecological regionControlling production in an ecological region

�� Vertical integration of the value chainVertical integration of the value chain

�� Increased feed price and main input raw materialsIncreased feed price and main input raw materials

�� Pond waste water and sludge treatment Pond waste water and sludge treatment

�� Lacking vaccines to prevent diseases Lacking vaccines to prevent diseases

�� Export price is lowering by exportersExport price is lowering by exporters’’ competitioncompetition

�� AntiAnti--dumping case in the U.S. (and future CVD case?)dumping case in the U.S. (and future CVD case?)

�� Sustainable certification jungleSustainable certification jungle

�� Lacking guaranteed better price between certified and nonLacking guaranteed better price between certified and non--

certified productscertified products

�� Social responsibility to surrounding communitiesSocial responsibility to surrounding communities

2323

PangasiusPangasius production in Mekong Delta production in Mekong Delta

20112011--1212

2424

2525

Estimated volume Pangasius 2012 Estimated volume Pangasius 2012 ((TopTop--5 provinces in Mekong Delta5 provinces in Mekong Delta))

2626

Technical sustainabilityTechnical sustainability

Vertical integrationVertical integrationR & DR & D BANKSBANKS INSURANCEINSURANCE

CERTIFICATION

BODIES

CERTIFICATION

BODIESINDEPENDENT

LABS

INDEPENDENT

LABS

HATCHERIESHATCHERIES

FEED

PRODUCERS

FEED

PRODUCERS

MEDICINES

PRODUCERS

MEDICINES

PRODUCERS

OTHER

SERVICES

OTHER

SERVICES

FARMSFARMS PROCESSORPROCESSOR

IMPOR

TERS

IMPOR

TERS

CONSU

MERS

CONSU

MERS

CONTRACTS FOR

VERTICAL

INTEGRATION

CONTRACTS FOR

VERTICAL

INTEGRATION

SERVICE

CONTRACTS

SERVICE

CONTRACTS

CORE

LINKAGE

CORE

LINKAGE

• Ratio of integrated Pangasius farming areas: 65%

• Ratio of integrated Pangasius farming areas in top-5

provinces.

+ Ben Tre: 90.0 %

+ Dong Thap: 61.9 %

+ An Giang: 58.0 %

+ Vinh Long: 46.5%

+ Can Tho: 23.0,0%

2727

Integrated Integrated PangasiusPangasius farming farming

2828

Steps to Pangasius Sustainable

Production

Steps to Steps to PangasiusPangasius Sustainable Sustainable

ProductionProduction

• 1996: First National Responsible Aquaculture Workshop• 2000: Trainings on responsible aquaculture by MOFI, VASEP,

DANIDA • 2003-2005: SGS & VASEP developed and implemented the SQF1000

for Pangasius in 3 Mekong Delta provinces • 2005: Agifish Pure Pangasius Union established by 5 stakeholders:

processor, farmers, hatchery owners, feed & medicine producer.• 2006: Panga Trace Program of Vinh Hoan Co.,Ltd. in cooperation

with Anova• 2007: First Organic Pangasius of NTACO, certified by IMO• 2009-2010: Boom of GlobalGAP certified Pangasius farms and

processing companies

• 1996: First National Responsible Aquaculture Workshop• 2000: Trainings on responsible aquaculture by MOFI, VASEP,

DANIDA • 2003-2005: SGS & VASEP developed and implemented the SQF1000

for Pangasius in 3 Mekong Delta provinces • 2005: Agifish Pure Pangasius Union established by 5 stakeholders:

processor, farmers, hatchery owners, feed & medicine producer.• 2006: Panga Trace Program of Vinh Hoan Co.,Ltd. in cooperation

with Anova• 2007: First Organic Pangasius of NTACO, certified by IMO• 2009-2010: Boom of GlobalGAP certified Pangasius farms and

processing companies

2929

Cooperation for ASC PangasiusCooperationCooperation forfor ASC ASC PangasiusPangasius

• 2008-2010: Pangasius Aquaculture Dialogue (PAD)

• 2010: Draft and discussion of Pangasius ASC Standard

• 2010: 4-Parties Cooperation Agreement (VASEP-VINAFIS-WWF Vietnam-WWF International) signed for sustainable Pangasius production towards the ASC standard

• 2011: Vietnam delegation visits WWF, ASC, IDH, GlobalGAP

• 2011: First WWF-Vietnam Workshop on Pangasius ASC

• 2011: Started implementation of Aquaculture Improvement

Programme (AIP) for Vietnam Pangasius supported by WWF

• 2012: IDH joins 4-Parties Cooperation Agreement

• 2012-13: First Pangasius farms have been ASC certified

• 2008-2010: Pangasius Aquaculture Dialogue (PAD)

• 2010: Draft and discussion of Pangasius ASC Standard

• 2010: 4-Parties Cooperation Agreement (VASEP-VINAFIS-WWF Vietnam-WWF International) signed for sustainable Pangasius production towards the ASC standard

• 2011: Vietnam delegation visits WWF, ASC, IDH, GlobalGAP

• 2011: First WWF-Vietnam Workshop on Pangasius ASC

• 2011: Started implementation of Aquaculture Improvement

Programme (AIP) for Vietnam Pangasius supported by WWF

• 2012: IDH joins 4-Parties Cooperation Agreement

• 2012-13: First Pangasius farms have been ASC certified

3030

First ASC Certified First ASC Certified Pangasius FarmsPangasius Farms

1. 13/09/2012 Vinh Hoan Corp. Tân Hòa Farm

2. 27/10/2012 Vinh Quang Corp. Cồn Lat Farm

3. 29/10/2012 NTACO Corp. NTACO Farm

4. 30/10/2012 Hung Vuong Corp. Phú Túc Farm

5. 16/11/2012 Hoang Long Corp. Tân Cương Farm

6. 19/11/2012 Anvifish Corp. Farm No 1

3131

Pangasius Farms ASC CertifiedPangasius Farms ASC Certified

22 Pangasius Farms of 17 Proccessing Companies

have been ASC Certified•Aquatex Ben Tre - Con Ban Pangasius Farm

•Bien Dong Seafood Company Limited

•CAFATEX - Ban Chat Farm

•Cuu Long Pangasius Corporation - Thanh Binh Farm Sector 11

•Docifish Corporation - Docifarm 1 & Docifarm 6

•Godaco Seafood JSC - Con Linh A Farm & Thanh Long Pangasius Farm

•Hoang Long Seafood Processing Company Limited

•Hung Ca Corporation - Van Y Aquaculture Farm

•Hung Vuong Corporation - Con Ban Farm

•Nam Viet Corporation - My Hoa Hung Farm

•Ngoc Ha Company Limited Food Processing and Trading

•NTSF Seafoods JSC - Tan Loc Farm Zone

•To Chau JSC - Thanh Binh Aquaculture Enterprise

•Vinh Hoan Corporation - Tan Thuan Dong Farm

•

3232

PangasiusPangasius Farms ASC Audited Farms ASC Audited

•28-03-2013: Green Farms Seafood JSC - Khanh Binh Village Farm

•10-04-2013: Thuan An Production Trading and Service - Phu Binh Farm

•22-04-2013: Songhau Food Processing JSC - Thinh Long Farm

•10-05-2013: An My Fish JSC - An My Farm

•13-05-2013: Angiang Fisheries Import & Export JSC - Chau Phu Pure Pangasius Farm

•13-05-2013: Angiang Fisheries Import & Export JSC - Vinh Trinh Pure Pangasius Farm

•20-05-2013: Seafood JSC No. 4 Branch - Dong Tam Fisheries Processing Company

•28-05-2013: Tra Vinh Food-Stuffs And Agricultural Products Company - Con Co Farm

•10-06-2013: Hana Mekong JSC - Tan Hong Farm

•17-06-2013: Cuu Long Corporation - An Giang Pangasius Farm

•09-07-2013: IDI Corporation Ben Tre Branch - Cho Moi 2 Fish Farm

•24-07-2013: Cadovimex II Seafood - Cadofish Farm - Gao Giong Farm Site

•04-09-2013: Dai Thanh Seafoods - Con Tron Farm

3333

Seafood Certification JungleSeafood Certification Jungle

3434

Jungle of Sustainable StandardsJungle of Sustainable Standards

All standards include:

1. Quality, hygiene and food safety assurance

2. Environmental and ecological protection

3. Social responsibility guarantee

4. Traceability in the whole supply chain

5. Community-based co-management

6. Animal welfare

BUT WHY SO HARD TO BENCHMARK?!BUT WHY SO HARD TO BENCHMARK?!

PangasiusPangasius’’ LessonsLessons

• Pangasius is a wonderful fish

• Good fish, why not good fillets ?

• Fillet quality issue: water content!

• Fillet has been marketed mostly on low price.

• Quality improvement

• Brand for Vietnam Pangasius

• Diversified products

• Sustainability and fair trade!

3535

ConclusionsConclusions

• Quality is important!

• Trust is important!

• Brand is important!

• Sustainability is important!

• Traceability is important!

• “The market is open and huge, but Pangasius will not succeed without branding, based on fair quality and sustainability of production!”

• Dr Heiner

(c) SYNTESA PARTNERS & ASSOCIATES.(c) SYNTESA PARTNERS & ASSOCIATES.3636

3737

3. PRESENT DEVELOPMENT

PROGRAMMES

NEW STAGE OF NEW STAGE OF

DEVELOPMENTDEVELOPMENT

REQUIREDREQUIREDFOR THE FUTUREFOR THE FUTURE

3939

Present ProgrammesPresent Programmes

� Pangasius Sustainable Supply Chain: SUPA

� Farming Technology Improvement: VIDATEC

� Vaccination : PHARMAG Vietnam

� Electronic traceability: TRACEVIRIFIED

� Distribution Center & Auction in EU: ZEEBRUGGE

� Pangasius industry management: Governmental

Decree

VIDATECVIDATEC

ViVietnamese etnamese -- DDanish anish AAquaculture quaculture

TTechnology echnology EExcellence xcellence CCenterenter

�� VIDATEC is a VIDATEC is a new idea of cooperation between Vietnam and new idea of cooperation between Vietnam and

DenmarkDenmark, it aspires to create a true collaboration between , it aspires to create a true collaboration between

authorities, research facilities, companies, financing instituteauthorities, research facilities, companies, financing institutes s

and industrial association related to aquaculture. and industrial association related to aquaculture.

�� VIDATEC will combine VIDATEC will combine the best of Danish technology, knowthe best of Danish technology, know--

how, experiences and market access how, experiences and market access with the with the rapidly growing rapidly growing

and ambitious aquaculture industry in Vietnamand ambitious aquaculture industry in Vietnam. .

�� VIDATEC will be a novel VIDATEC will be a novel network platform network platform including all including all

relevant stakeholders from both countries, applying a relevant stakeholders from both countries, applying a holistic holistic

value chain value chain perspective of the Vietnamese aquaculture perspective of the Vietnamese aquaculture

industry. industry.

VIDATEC AdvantagesVIDATEC Advantages

• Doubled production in the same farming area

• Emission reductions on nitrogen, phosphor, organic

materials

• Reductions in water usage

• Reductions in medicine per tons produced fish

• Better feed conversion rate

• Better turnover compared to traditional farms

• All fish farms approved by local authorities

4141

PrePre--GrowoutGrowout

4242

GrowingGrowing

4343

EU: Cod/Haddock EU: Cod/Haddock vsvs PangasiusPangasius

• Average world market price

– Cod 5.00€/kg

– Haddock/Hake 4.00€/kg

• For frozen fillets

– Cod 8.00€/kg

– Haddock/Hake 7.50€/kg

• In 2010, 700,000t (NO, FO, IS)

Pangasius

(c) SYNTESA PARTNERS & ASSOCIATES.(c) SYNTESA PARTNERS & ASSOCIATES. 4444

Haddock

In 2010: 230,000t

In 2012: 167,000t

EU Pangasius Import Context 2013EU Pangasius Import Context 2013

• Pangasius import to EU dropped over the last 5 years, from US$ 581 mill. in 2008 to 426 mill. in 2012

• EU share decreased a half, from 48% to 24.4%

• Import price gone down, producers don’t get a fair price

• Reputation dammage for fillet product

• A big volume is sold via traders– No transperancy on quality and prices

– No stability in volumes

– Speculative volumes are stored in Europe

– Minimal margin for the Vietnam exporters

IT IS NOW TIME TO CHANGE!

ZEEBRUGGE

Zeebrugge and European marketsZeebrugge and European markets

Distribution Center & Auction in EUDistribution Center & Auction in EU

• Combine volumes of Vietnamese producers

• Sell Pangasius through 1 channel by using an

electronic auction in Zeebrugge

• Assure transparent Pangasius frozen fillet quality by

using general Quality Index Method

• Assure transparent in volume and price

• Centralized quality control over the logistics chain

• Reduced impact of middlemen in EU

• Get a fair price and healthy margines for all parties

TraceVerifiedTraceVerified

www.TraceVerified.com

The first electronic traceability service from

Vietnam

Initiated by Sac Ky Hai Dang Science Technology Services

JSC (EDC-HD)

Funded from the GCF -Danish Government’s

Organization

Pangasius, an excellent food!

5050

Thank You and Looking to Work Together!

Vietnam Association of Seafood Exporters & Producers (VASEP)

Headquarter: # 218 Lot A, 6th Str. An Phu - An Khanh, Dist. 2, Ho Chi Minh City

Gov. Relations Office: 10 Nguyen Cong Hoan str., Ba Dinh dist., Ha Noi, Vietnam

Tel: +84 437 715 055 • Fax: +84 437 715 084 • Email: dungnh@vasep.com.vn

Website: www.vasep.com.vn; www.pangasius-vietnam.com; www.vietfish.org