Catfish exporters seek other markets as trade barriers to US loom

As Vietnam catfish is meeting many barriers in the US market, exporters are considering shifting to Asian markets, especially China.

Godaco has two catfish processing plants recognized by FSIS as meeting requirements to export products to the US.

However, Nguyen Van Dao, general director of Godaco, said the company dare not export catfish to the US because of the high costs. 

For the last few years, Vietnam catfish exports have had high anti-dumping duties set by the Department of Commerce, which makes export costs very high. 

For the last few years, Vietnam catfish exports have had high anti-dumping duties set by the Department of Commerce, which makes export costs very high. 

Meanwhile, the costs will be even higher because from August 2, 2017, US FDA will examine 100 percent of import consignments from Vietnam.

“FDA examines import consignments with the probability rate of 3-5 percent. But from August 2, 100 percent of consignments will be examined. We will have to spend more money on examination and storage,” he explained.

Nguyen Anh Thu, deputy general director of Anmyfishco, said his company focuses on Asian and European markets to avoid the barriers in the US market. 

However, he fears that with the new regulation, the company’s exports would also suffer.

Truong Dinh Hoe, secretary general of VASEP, said the quality of exports is not what Vietnamese exporters worry about.

“The biggest problem is that they are not sure if the number of i-houses in the US is enough for Vietnamese exports if 100 percent of export consignments are examined,” Hoe said.

Vietnamese exporters have the right to choose storehouses, but under the new regulations, the products will be kept at 40 i-houses in the US. 

The i-houses not only contain catfish, but other products as well, including poultry and animal meat. Some exporters fear they have to keep products at the i-houses far from the points of sale, which will increase costs.

Discouraged by the new barrier, some Vietnamese catfish exporters are considering the Chinese market.

A report shows that China has become the biggest catfish export market for Vietnam which consumed $133 million worth of catfish products in the first six months of the year, an increase of 41 percent over the same period last year.

The catfish export turnover to the US during the same time was $118 million only, while the figure was $78 million for European markets.

Dao commented that the Chinese market is large and doesn’t require high transportation costs and has few technical barriers. But the market is becoming choosier.