Viet Nam Pangasius Success Story Dr. Nguyen Huu Dzung Vietnam Association of Seafood Exporters and Producers (VASEP) Trend in World Aquaculture 80 Production Value ( US$ bil.) World Volume World Value 80 60 60 40 40 20 20 0 0 2005 2004 2003 2002 2001 2000 1999 IIFET 2008 Vietnam 1998 July 23, 2008 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 1985 1984 Year Source: FAO - Fishstat Plus Production Quantities (million tonnes) 100 Production by Environments Tons mil. 35 30 25 20 15 10 5 0 Mariculture 2005 IIFET 2008 Vietnam 2000 Freshwater culture 1995 1990 1985 1980 Source: FAO - Fishstat Plus July 23, 2008 1975 1970 1965 1960 1955 1950 Brackishwater culture Production by Main Regions China 60 Rest of Asia and the Pacific region 50 Rest of World 40 30 20 10 0 2005 2000 IIFET 2008 Vietnam 1995 July 23, 2008 1990 Year 1985 1980 1975 1970 1965 1960 1955 1950 Production quantity (mil. tons) 70 Source: FAO - Fishstat Plus Import of Freshwater Fish 1,000 MT 800 Freshwater Fillets, fresh or chilled Freshwater Frozen Whole Freshwatr Frozen Fillets 700 600 500 400 300 200 100 0 July 23, 2008 IIFET 2008 Vietnam 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 1985 Source: FAO - Fishstat Plus Species of farmed Pangasius Pangasius bocourti - Basa Pangasius hypophthalmus - Tra July 23, 2008 IIFET 2008 Vietnam July 23, 2008 3 IIFET 2008 Vietnam Pangasius – a Fish-Cinderella ? • 20 year ago, Pangasius was very common fish, served as daily food for poor people in Mekong Delta • It is omnivorous fish, adapts well to different feed, can survive in very difficult conditions, with low oxygen • In the past, Pangasius farming is a traditional activity of farmers in the South of Vietnam, only for themselves. • Now Pangasius became the beautiful Princess in Vietnamese aquaculture, with harvest exceeded 1 mill. MT, value close to US$ 1 billion annually • Pangasius is intensively farmed in 3 ways: ponds, floating cages and net-pen enclosure July 23, 2008 IIFET 2008 Vietnam Vietnam Pangasius Success Story In 10 years 1997-2007, Vietnam Pangasius: • Farming areas increased only 8 times, reached 9,000 ha • Annual commercial production of raw fish increased 45 times, from 22,500 MT to more than 1,000,000 MT • Volume of exported Pangasius fillets jumped-up more than 55 times, from 7,000 MT to 386,870 MT. • Export revenue increased 50 times, from US$ 19.7 mill. to US$ 979,036 mil. • Number of export markets increased to more than 80 countries and territories, in all continents. • In 6 months 2008, exported 262,950 MT fillets (+53.3%), valued at US$ 608 mill. (+34%), to 103 markets July 23, 2008 IIFET 2008 9 Vietnam Stocking Density & Yield Floating cages: 100-150 fish/ m3 Pond : 30- 40 fish/ m2 Net-pen enclosure: 40 - 60 fish/m2 July 23, 2008 IIFET 2008 Vietnam 100-120 kg/m3 250-300 MT/ha 300-350 MT/ha Feeding and FCR Two main kinds of feeds: Home -made fresh feed & Pellets Home-made FCR for fresh home-made feed is 2.8-3.0 July 23, 2008 FCR for pelleted feed is 1.5-1.8 IIFET 2008 Vietnam Pangasius Farming Area & Commercial Annual Harvest 1,000 MT 1,000 ha 10 1000 9 900 8 800 7 700 6 600 5 500 4 400 3 300 2 200 1 100 0 0 1997 July 23, 2008 1999 2001 2003 Farming areas IIFET 2008 Vietnam 2004 2005 Production 2006 Average Productivity Tons/ha 100 90 80 70 60 50 40 30 20 10 0 1997 July 23, 2008 1999 2001 2003 2004 Average productivity IIFET 2008 Vietnam 2005 2006 Advanced Farms Standards CM • SQF1000 of SQF Institute (USA) • EurepGAP of European Retailers Group • BAP of Global Aquaculture Alliance (USA) SQF : “SAFE & QUALITY FOOD” GAP : “GOOD AQUACULTURE PRACTICE” BAP : “BEST AQUACULTURE PRACTICE” July 23, 2008 IIFET 2008 Vietnam Responsible Farming Models • Agriculture & Rural Development Dept. in An Giang, SGS & VASEP has developed a SQF1000 & 2000 standards for Pangasius in 2005 • Agifish Pure Pangasius Union (APPU) consisting of 5 kinds of stakeholders of the whole production chain: processor, farmers, hatchery owners, feed producer & medicine producer. • The Panga Trace Program of Vinh Hoan Co.,Ltd. in cooperation with Anova • First Organic Pangasius production of Binca & NTACO, certified by IMO to meet Naturland standards July 23, 2008 IIFET 2008 15 Vietnam Pangasius Processing Industry • More than 80 existing Pangasius factories, with capacity to process total 3,500 MT raw fish a day • Many modern factories are set up (eg. factory with 300 MT raw fish a day can be build up in 6 months!) • International standards for safety assurance implemented & certified by 3-party bodies • Fish has tested in residues before harvest allowed • Improvement of vertical integration - traceability is stepby-step implementation • Mandatory standards to treat waste water before discharge into the environment July 23, 2008 IIFET 2008 16 Vietnam Product Diversification July 23, 2008 Basa Basa skewers skewers Basa Basa strips strips Basa Basa breaded breaded Basa Basa ring ring IIFET 2008 17 Vietnam Pangasius Export 2001-2007 Million USD 1.000 MT 450 1050 400 900 350 750 300 250 600 200 450 150 300 100 150 50 0 0 2001 2002 2003 2004 2005 Năm volume July 23, 2008 IIFET 2008 Vietnam value 2006 2007 Trend of Market Shares (in volume term) % 100 80 60 40 20 0 2000 July 23, 2008 2001 USA 2002 EU 2003 2004 CN&HK ASEAN IIFET 2008 Vietnam 2005 Others 2006 Pangasius Market Structure 2007 (in value) Australia 3.9% Others 20.1% EU 48.0% Russia 9.2% China& Hongkong 4.0% July 23, 2008 The U.S 6.9% ASEAN 7.9% IIFET 2008 Vietnam Top importing countries in 2006 0% 2% 4% 6% 8% 10% Rusia 9.5% Spain 8.8% USA 8.5% Netherland 7.7% China 6.2% Germany 5.7% Singapore 4.0% Belgium 3.9% July 23, 2008 14% 16% 14.9% Poland Australia 12% 3.5% Data of 2006 IIFET 2008 Vietnam EU Frozen Freshwater Fillets Suppliers EU Import Market Share (%) 0 10 20 30 40 Vietnam Netherland Tanzania Germany Russia Kazakhstan China Denmark Uganda Belgium Eurostat – Frozen Fillet Freshwater Fish 03042019 July 23,Source: 2008 IIFET 2008 Vietnam 50 60 70 Top Frozen Fillets Catfish Suppliers of USA Vietnam China Thailand Malaysia 2006 Kilos Others 2005 Kilos 0 July 23, 2008 5 Source: NMFS 10 1,000 MT IIFET 2008 Vietnam 15 20 Vietnam Pangasius Strategy • • • • • • • • • Sustainable & responsible development Environmental-friendly farming and processing Natural pharmaceutics & probiotics use Technology & infrastructure modernization Vertical integration improvement Community-based safety and quality management Market diversification and value-added products 4-Parties Strategic Alliance Set-up Branding & country image building July 23, 2008 IIFET 2008 24 Vietnam Better Pangasius Farming • Use floating pellets instead of “freshly made” wet feed. • International standards for safety assurance implemented at farms & certified by 3-party bodies • Planning of farms development, based on loading capacity of waterbodies in Mekong Delta • Improvement of vertical integration - traceability implementation • Mandatory national standards for farms to treat the waste water before discharge into the water-bodies July 23, 2008 IIFET 2008 25 Vietnam New Standard: VietnamGAP VietnamGAP will be voluntarily implemented for responsible & sustainable Pangasius farming VietnamGAP is designed to be equivalent to EurepGAP & BAP-ACC standards VietnamGAP will set standards for: • Design & construction of farms • Good Farming Practices • Traceability of product • Proper fish health management • Environmental monitoring & management • Social responsibility • Food safety & quality assurance July 23, 2008 IIFET 2008 26 Vietnam Trade issues and solutions • • • • Trade name confusion: Basa, Tra, Pangasius US anti-dumping duties: Review & sunset review Anti-biotic residues: National programme Over-use of polyphosphates and over-glazing VFFA Declaration • Traceability: VASEP&Trace Tracker Project • Environmental and Social responsibility: VietnamGAP implementation • Top and Stable Quality: Grade A product standards July 23, 2008 IIFET 2008 Vietnam Thank You and See You Again in Vietnam! Vietnam Association of Seafood Exporters & Producers (VASEP) Head Office: #71, D5 str. Binh Thanh dist. Ho Chi Minh City, Vietnam Gov. Relations Office: 10 Nguyen Cong Hoan str., Ba Dinh dist., Ha Noi, Vietnam Tel: +84 4 771 5055 • Fax: +84 4 771 5084 • Email: vasep@fpt.vn Website: www.vasep.com.vn July 23, 2008 IIFET 2008 Vietnam