Image: Vasep / FIS

Domestic Supply of Raw Tuna Declines, Hindering Exports

VIET NAM
Wednesday, July 24, 2024, 07:00 (GMT + 9)

In June, Vietnam's tuna exports still maintained growth. Tuna export value this month reached more than 85 million USD, an increase of 32% over the same period in 2023. Cumulatively in the first 6 months of the year, the export value reached nearly 472 million USD, an increase of 23%.

Source: Stockfile FIS

Exports of frozen tuna meat/loin increased, canned tuna decreased

Vietnam's exports of tuna product groups in the first 6 months of 2024 are increasing over the same period. However, while the export value of frozen tuna meat/loin products in June 2024 reached the highest level since the beginning of the year, reaching more than 44 million USD, an increase of 29% over the same period, and has an increasing trend. Canned tuna exports decreased again, the export value in June 2024 reached just over 17 million USD, down 11%.

Source: Stockfile FIS -->

In markets, tuna exports to main markets such as the US, EU or Israel continued to increase in June, 18%, 56% and 50% respectively. Notably in the EU market, tuna exports to Italy and the Netherlands are increasing at a three-digit rate, while exports to Germany are decreasing.

Along with that, tuna exports to Russia are also increasing at a 3-digit rate in June. With continuous high growth since the beginning of the year, Russia is becoming one of the 5 largest import markets for Vietnamese tuna. Male.

Contrary to the export trend to the three markets mentioned above, exports to markets of countries participating in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) decreased in June. Export value to this market block in June only reached nearly 9 million USD, down 12%.

<-- Source: Stockfile FIS

Currently, market demand is increasing in preparation for the year-end holidays, and this will be an opportunity for businesses.

Enterprises lack raw materials of pure origin

However, according to businesses, the growth trend of tuna exports to the above markets is difficult to maintain.

On April 4, 2024, Decree No. 37/2024/ND-CP of the Government amending and supplementing a number of articles of Decree No. 26/2019/ND-CP dated March 8, 2019 of the Government stipulates detailing a number of articles and measures to implement the effective Fisheries Law, there is a problem, that is, the minimum size of skipjack tuna allowed for exploitation currently stipulated in Decree 37 is 0.5m ( equivalent weight from 5kg to 7kg). However, the actual yield of tuna reaching this size is very low. Accordingly, when Decree 37 takes effect, all fishing ports do not dare to issue material certification for skipjack tuna smaller than this catch size. And this will cause the domestic supply of skipjack tuna to decrease. Meaning that, the Enterprise does not have raw materials of pure origin for production.

Currently, exports are still increasing because the amount of raw skipjack tuna in reserve at businesses that have been certified is still available, but this amount of raw material reserves is also running out. Enterprises will have to increase imports from foreign sources. However, the second half of the year is often the time when businesses have to increase production for export orders to large markets such as the EU, to enjoy tax incentives when quotas are reopened early next year.

Source: Vasep

In addition, the European Union's (EU) conservation regulations do not mention the minimum size of skipjack tuna but only apply to some sensitive species; The minimum size also varies depending on the sea area and the resources in that area. The EU protects aquatic resources by regulating quotas, ban periods, etc., not just by regulating the minimum size that can be exploited. Foreign fishing vessels still catch skipjack tuna under 1.5 kg and are still granted fisheries certification.

Therefore, if Vietnam does not quickly remove these difficulties for businesses, we will soon lose export markets.

Source: Vasep (Translated from the original in Vietnamese)

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