Pangasius Floor Price to help meet USA quality standards
On April 2 2018, leading Pangasius exporters to the USA market held a meeting with 40 pangasius farmers from An Giang, Dong Thap and Can Tho provinces of Vietnam. These are the farmers that produce the high quality pangasius raw materials which are needed to meet the stringent standards for remaining in the US market.
As a result of the meeting the raw Pangasius suppliers have agreed a contract to cooperate in production of Pangasius and to carefully control quality standards particularly ensuring that there is no antibiotic residue. One of the leading Pangasius exporters will supply fingerlings and feed to the farmers.
In return for the co-operation and adherence to standards the leading Pangasius exporters targeting the USA will offer a floor price for the raw materials of 24,000 VND (approx. US$1.05) per kg. If the raw material market price is higher then the Pangasius Exporters will pay the farmers the market price.
Seafood Exporters hope that this will ensure that the USA market for Pangasius, which has been declining in the past year under regulatory pressure, will remain significant despite increasing demand from China.