February 7, 2018 — The rapid growth of Vietnam’s pangasius shipments has met with several markets barriers in the European Union and United States, where the fish is being gradually pushed away.
With similarity in texture and taste to other whitefish such as cod, sole, haddock, and pollock, but with much lower prices, pangasius from the Southeast Asia nation has quickly become a competitive alternative in the U.S. and E.U., Nguyen Tien Thong, an assistant professor of applied economics and marketing research at the University of Southern Denmark, told SeafoodSource.
But Thong, also a research associate with analytics firm Syntesa, with a specialty in price formation and consumer preference for seafood, said pangasius’ growth in the U.S. and E.U. markets has been actively thwarted by market barriers erected by both the industry’s competitors and erroneous reporting by mass media.
Vietnam’s pangasius exports were worth USD 1.78 billion (EUR 1.43 billion) last year, up 4.3 percent from 2016. But the export value to the U.S. and E.U. fell 11 percent and 22.3 percent, respectively, recently released data from Vietnam Association of Seafood Producers and Exporters (VASEP) revealed.
Three “wars” against pangasius
European and Vietnamese seafood experts have collectively created a new term for the campaigns surrounding pangasius, calling them the ”whitefish wars.”
The most recent round of this war broke out in early 2017, when a television segment on Spain’s Cuatro channel claimed pangasius farming was polluting the Mekong Delta. Two weeks later, French retail giant Carrefour decided to suspend sales of Vietnamese pangasius in all its stores in Belgium, France, and Spain. Carrefour attributed its decision to “the doubts that persist about the adverse impacts that pangasius farms have on the environment.”
The Aquaculture Stewardship Council responded to Carrefour’s move with a statement insisting the facts did not support Carrefour’s pangasius decision, and VASEP said repeatedly that the Cuatro report provided distorted information. Seeking to help combat the growing ”PR crisis,” 20 of Vietnam’s leading pangasius exporters joined together to create a market development fund in June 2017. But the rebuttals appeared largely ineffective at halting the negative impact on pangasius sales.
However, Thong argues that the “whitefish war” began as early as 2000, and started in the United States. In that year, about 90 percent of the catfish imported by the U.S. was from Vietnam. Feeling threatened, U.S. catfish growers and wholesalers started a campaign to curtail imports of Vietnamese pangasius into the country.
For years, pangasius faced high anti-dumping duties imposed by the U.S government, and a push for increased inspections. After a protracted political debate, in August 2017, the U.S. Department of Agriculture’s Food Safety and Inspection Service (FSIS) began inspecting all imported pangasius. Only a few months after the decision, only two of 14 Vietnamese pangasius exporters are still shipping pangasius to the U.S., according to VASEP.
In the E.U., backlash against pangasius started in late 2010, when the World Wildlife Fund placed the fish on the “red list,” effectively branding it a no-buy for environmentally conscientious consumers, Thong said. The attempt, which Thong termed as the second “war,” was made after the fish became a significant substitute fish to other whitefish raised in many European countries.
A few years later, WWF reversed course on pangasius, giving its backing to all Vietnamese-produced pangasius awarded Aquaculture Stewardship Council certification.
Further controversy was ignited in 2011 when Member of the European Parliament Struan Stevenson, senior vice president of the European Parliament’s Fisheries Committee, attacked the pangasius’ environmental, social, and safety credentials during an address to the European Parliament.
Read the full story at SeafoodSource