Viet Nam Pangasius Success Story - Oregon State University

Viet Nam PangasiusSuccess Story

Viet Nam Viet Nam PangasiusPangasiusSuccess StorySuccess Story

Dr. Nguyen Huu DzungVietnam Association of Seafood Exporters and Producers

(VASEP)

July 23, 2008July 23, 2008 IIFET 2008 VietnamIIFET 2008 Vietnam

Trend in World AquacultureTrend in World Aquaculture

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Brackishwater culture Freshwater culture Mariculture


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Freshwater Fillets, fresh or chilledFreshwater Frozen WholeFreshwatr Frozen Fillets


Species of farmed Species of farmed PangasiusPangasiusPangasius bocourti - Basa

Pangasius hypophthalmus - Tra

July 23, 2008July 23, 2008 IIFET 2008 VietnamIIFET 2008 Vietnam3


PangasiusPangasius –– a Fisha Fish--Cinderella ?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


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

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

Vietnam Pangasius Success StoryVietnam PangasiusVietnam Pangasius Success StorySuccess Story

9


Floating cages: 100-150 fish/ m3 100-120 kg/m3

Pond : 30- 40 fish/ m2 250-300 MT/haNet-pen enclosure: 40 - 60 fish/m2 300-350 MT/ha

Stocking Density & YieldStocking Density & Yield


Feeding and FCRFeeding and FCR

FCR for fresh home-made feed is 2.8-3.0

FCR for fresh home-made feed is 2.8-3.0

FCR for pelleted feed is 1.5-1.8FCR for pelleted feed is 1.5-1.8

Two main kinds of feeds:

Home-made fresh feed & Pellets

Two main kinds of feeds: Two main kinds of feeds:

HomeHome--made fresh feed & Pelletsmade fresh feed & Pellets


PangasiusPangasius FarmingFarming AreaArea & & CommercialCommercial AnnualAnnual HarvestHarvest

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Average Average ProductivityProductivity

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SQF : “SAFE & QUALITY FOOD”

GAP : “GOOD AQUACULTURE PRACTICE”

BAP : “BEST AQUACULTURE PRACTICE”

AdvancedAdvanced FarmsFarms StandardsStandards

• SQF1000CM of SQF Institute (USA)

• EurepGAP of European Retailers Group

• BAP of Global Aquaculture Alliance (USA)

• SQF1000CM of SQF Institute (USA)

• EurepGAP of European Retailers Group

• BAP of Global Aquaculture Alliance (USA)


Responsible Farming ModelsResponsibleResponsible FarmingFarming ModelsModels• 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

• 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

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Pangasius Processing IndustryPangasiusPangasius ProcessingProcessing IndustryIndustry

• More than 80 existing Pangasius factories, with capacityto 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 assuranceimplemented & certified by 3-party bodies

• Fish has tested in residues before harvest allowed• Improvement of vertical integration - traceability is step-

by-step implementation• Mandatory standards to treat waste water before

discharge into the environment

• More than 80 existing Pangasius factories, with capacityto 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 assuranceimplemented & certified by 3-party bodies

• Fish has tested in residues before harvest allowed• Improvement of vertical integration - traceability is step-

by-step implementation• Mandatory standards to treat waste water before

discharge into the environment

16


Product DiversificationProduct DiversificationProduct Diversification

Basa skewersBasa skewers Basa stripsBasa strips

Basa breadedBasa breaded Basa ringBasa ring

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PangasiusPangasius Export 2001Export 2001--20072007

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Trend of Market Shares Trend of Market Shares ((in volume termin volume term))

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USA EU CN&HK ASEAN Others


PangasiusPangasius Market Structure 2007 Market Structure 2007 (in value)

EU48.0%

ASEAN 7.9%

The U.S6.9%

China& Hongkong

4.0%

Russia9.2%

Australia3.9%

Others20.1%


Top importing countries in 2006Top importing countries in 2006

14.9%

9.5%

8.8%

8.5%

7.7%

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Rusia

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Netherland

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AustraliaData of 2006Data of 2006


EU Frozen Freshwater Fillets SuppliersEU Frozen Freshwater Fillets Suppliers

Source: Source: EurostatEurostat –– Frozen Fillet Freshwater Fish 03042019Frozen Fillet Freshwater Fish 03042019

0 10 20 30 40 50 60 70

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Netherland

Tanzania

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EU Import Market Share (%)


Top Frozen Fillets Catfish Suppliers of Top Frozen Fillets Catfish Suppliers of USAUSA

Source: NMFSSource: NMFS

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1,000 MT

2006 Kilos2005 Kilos


Vietnam Pangasius StrategyVietnam Vietnam PangasiusPangasius StrategyStrategy

• 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

• 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

24


Better Pangasius FarmingBetterBetter PangasiusPangasius FarmingFarming

• Use floating pellets instead of “freshly made” wet feed.

• International standards for safety assuranceimplemented at farms & certified by 3-party bodies

• Planning of farms development, based on loadingcapacity of waterbodies in Mekong Delta

• Improvement of vertical integration - traceabilityimplementation

• Mandatory national standards for farms to treat thewaste water before discharge into the water-bodies

• Use floating pellets instead of “freshly made” wet feed.

• International standards for safety assuranceimplemented at farms & certified by 3-party bodies

• Planning of farms development, based on loadingcapacity of waterbodies in Mekong Delta

• Improvement of vertical integration - traceabilityimplementation

• Mandatory national standards for farms to treat thewaste water before discharge into the water-bodies

25


New Standard: VietnamGAPNew Standard: New Standard: VietnamGAPVietnamGAPVietnamGAP 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

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

26


Trade issues and solutionsTrade 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


Thank Youand

See YouAgain

in Vietnam!Vietnam Association of Seafood Exporters & Producers (VASEP)

Head Office: #71, D5 str. Binh Thanh dist. Ho Chi Minh City, VietnamGov. Relations Office: 10 Nguyen Cong Hoan str., Ba Dinh dist., Ha Noi, Vietnam

Tel: +84 4 771 5055 • Fax: +84 4 771 5084 • Email: [email protected]: www.vasep.com.vn

Viet Nam Pangasius Success Story - Oregon State University

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