Tra fish exports predicted to recover from third quarter
Tra fish exports predicted to recover from third quarter
Thanks to better input material supply and the application of a closed production process, the tra fish industry is expected to overcome difficulties and become profitable again in the third quarter of this year, according to analysts.
Data from the Viet Nam Association of Seafood Exporters and Producers (VASEP) showed that in the first two months of this year, revenue from seafood export topped US$1.1 billion, down 26 per cent year on year, with tra fish exports dropping 38 per cent to $240 million.
According to Vietcombank Securities Limited Company (VCBS), the demand for tra fish plummeted from the fourth quarter of last year after positive signs at the beginning of the year. A fall of 20-30 per cent was seen in the production and export revenue of the product from last November due to high inventories and inflation in importing countries.
The downturn trend continued in the first month of 2023, with respective falls of 51 and 60 per cent over the same period last year.
However, tra fish exports increased slightly at 4 per cent in February to $662 million. But the VCBS predicted that tra fish demand would continue to decrease in the majority of the markets until the third quarter when festive events at year-end come and the Chinese market is opening.
While high feed prices and extreme weather conditions are affecting small-scale farms, large-scale businesses are eying great opportunities to expand their market share thanks to their self-supply of input materials and the application of a closed production process, according to the VCBS.
The VCBS reported that in 2022, tra fish exports hit a record of $2.44 billion despite the high feed price. In the year, strong growth of at least 30 per cent was seen in tra fish export revenue generated from the majority of the markets, especially some Middle East countries at 115-429 per cent.
The firm held that 2023 would still be a good year for businesses that could promote their advantages in material supply.
Exporters held that after a long period of decline in revenue due to low tra fish prices in the first half of this year, domestic exporters would enjoy recovery in the third quarter.
