In 2023, U.S. imports of pangasius experienced a significant decline, partially attributed to a price surge to over USD 3.50 per pound in April 2022. By November 2023, imports plummeted to 166 million pounds from 284 million pounds in the entire year of 2022, despite the price of 5- to 7-ounce frozen pangasius fillets dropping below USD 2 per pound. This downturn marks a reversal from the previous growth trajectory seen from 2019 to 2021. Maritime Products International President Matthew Fass highlighted the sharp retreat in demand at the 2024 Global Seafood Market Conference, pointing to elevated freight costs in 2021 and 2022 as a primary cause for the initial price hikes, which have since decreased by 20 to 25 percent.
The U.S. tilapia market has shown signs of recovery, yet pangasius imports have not rebounded similarly. The industry anticipates potential price increases due to firming freight costs. The shift of oversight from the U.S. Food and Drug Administration to the U.S. Department of Agriculture in 2017 significantly impacted the pangasius trade, introducing more volatility into the market and affecting the product’s import and distribution processes.
U.S. anti-dumping and countervailing duties have posed additional challenges, with Vietnam, responsible for 45 percent of global pangasius production, contesting these measures through the World Trade Organization. Despite these hurdles and market volatility, particularly with China’s fluctuating demand, opportunities for Vietnamese pangasius suppliers are emerging due to policy shifts and the U.S. ban on Russian whitefish. However, domestic production challenges have dampened growth prospects, evidenced by financial struggles among Vietnam’s leading pangasius firms in 2023.
Looking ahead, the pangasius industry sees potential for expansion, especially as the U.S.-China trade war impacts tilapia imports, providing pangasius with a competitive advantage. Ongoing U.S.-China trade tensions may push more buyers to consider sourcing from Vietnam instead of China.
Source: SeafoodSource