With the rise of pangasius value-added products in the Chinese market, some Vietnamese manufacturers also hope to ride on this forward train to increase export volume while increasing gross profit margins.
At the Qingdao Fisheries Expo, John Nguyen, sales director of Vietnamese exporter Godaco Seafood, told UCN that the company is developing more value-added products, such as breaded fish and pickled fish, for the Chinese retail industry.
“Five years ago, after opening a new factory, we shifted our production focus to value-added products. Currently, our fillet products are mainly exported to Europe, North America, South America and the Middle East, and our value-added products are sold to Japan, South Korea, Singapore and Malaysia. Next , we want to promote breaded fish, pickled fish and other value-added products to the Chinese market." Nguyen said.
Currently, Godaco's value-added products account for 10-20% of revenue, and the future goal is to grow to more than 30%. The Chinese market accounts for 20% of Godaco's sales, which is lower than the level in epidemic areas. Nguyen believes that in China, as the world's largest seafood consumer market, pangasius sales will eventually rebound.
"We have a new factory, which is now fully automated. We use machines to replace labor and specialize in deep processing products. In China, we hope to focus on the retail and supermarket sectors. The Chinese market may still need time to develop demand for value-added pangasius products. , and we are negotiating cooperation with Hema Fresh. We need to educate Chinese consumers and continue to introduce these good products, which will take time to adapt." Nguyen said.
Chen Xindong, general manager of Otaigong (Guangdong) Food Co., Ltd., told UCN that the overall market for pangasius in China has picked up in the third quarter, mainly due to the increase in students' summer vacation consumption and group meal demand.
"Although the industry is still relatively involution, the overall pangasius consumption is picking up, and competition this year is more intense than in the past. Merchants still have last year's high-priced inventory to deal with, and the overall profits are less." Chen Xindong said, "However, during the National Day Festival sales did not meet expectations, there was a lot of stocking up in September, and consumption was not as hot as expected."
Chen Xindong predicts, “It may be difficult for pangasius prices to fall further in the fourth quarter. I heard that Vietnam’s breeding volume is decreasing. We also went to the Vietnam base to inspect and found that they did not put in so many fish. There is not much risk in purchasing now. If every merchant starts stocking up on goods, there will be a surge."