Vietnam aims to meet USDA requirements with pangasius sector overhaul
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Vietnam aims to meet USDA requirements with pangasius sector overhaul

Posted by | July 6, 2017 |

Vietnam’s ministry of agricultural and rural development (Mard) is aiming to meet any and all US requirements with the implementation of a new decree, exporter Vinh Hoan Corporation has noted.

In May 2017 Mard set out its decree “number 55” to regulate the pangasius sector. “Exporters anticipate that the newly-effective decree will shift this billion dollar industry onto a more sustainable path,” said Vinh Hoan on July 1, as the decree entered into force.

Mard, and exporters, have been aiming to meet US Department of Agriculture “equivalency” in time for the expected Sept. 2 deadline; however, the USDA has just announced it will begin inspection of 100% of pangasius imports from Aug. 2.

Mard’s decree is unique in that it can be executed immediately, as the ministry had previously promulgated “national technical standards for frozen pangasius fillets”, said Vinh Hoan. “The standards would pave the way for farmers, processors, and exporters to comply with the highest regulative requirements, and eliminate those enterprises whose dishonest operations had impacted negatively on the reputation and quality of the Vietnam pangasius.”

According to Vietnam’s directorate of fisheries, in the first half of 2017 the value of pangasius exports rose 2.7% year-on-year. In the Mekong Delta, farming area and harvest volume reached 3,100 hectares and 519,260 metric tons, up 1.3% and 2.2% respectively year-on-year.

Most farmers and processing companies made profits thanks to increasing raw material price, in which farmers gained VND 4,000-6,000 ($0.17-$0.26) per kilogram, said Vinh Hoan.

However, it is forecast that in August, September, and the fourth quarter of 2017, the processing plants will be short of materials as a consequence of declining farming area in the first quarter.

“Demand from fast-growing markets such as China and Hong Kong is surging, hence the supply-demand gap is expected to widen,” the company said.

Source: Undercurrent News. Date: 2017-07-06