[Industry news] Raw materials price surge thanks to favorable exports condition
05 October 2017
Increasing buying orders from exporting markets and limited supply [of raw materials] have resulted in raw materials surge at the moment.
According to Ministry of Ag. and Rural Development, in the last 9 months, the domestic pangasius market has flourished in terms of pricing, which is more favorable for farmers. Stable demand in key markets has also contributed to increasing consumption of raw materials.
Raw materials’ surge at the moment is caused by increasing orders from exporting markets to meet the consumption demand for year-end season, whilst the supply [of raw materials] is still short.
In particular, raw material prices in Mekong Delta Basin in Sep climbed to 25,000-27,000 dong per kg depending on quality and payment term.
For bigger size raw fish (exceed 1kg in weight), the prices range from 24,500-25,000 dong per kg, up by 2,000-2,500 per kg (approx. 10%) versus last month. Fingerling prices have also followed upward trend due to limited supply and increase in demand (for grow-out farming).
At the present, the harvesting activity is booming to meet the processors’ demand at year-end.
Up to now, total farming area in Mekong Delta Basin has reached over 5,140 ha, down 1.3% year-on-year. Harvest volume has totaled 998,000MT, up 9.8% year-on-year.
Dong Thap Province has the largest farming area and volume among others. Its harvest volume as of September was 390,000MT, up 18.7% year-on-year.
[Translated from VASEP, find the original article here. Vinh Hoan is not in any way responsible for the source content]