Vietnamese pangasius competes with traditional wild caught saithe and cod in Germany

Large Pangasius farm in Vietnam

Imports of fillets of cod and saithe (wild caught) and pangasius (aquaculture) to Germany (Source. Destatis 2016)

In Germany pangasius from aquaculture provides already an alternative to popular wild fish including cod or saithe.

The EU whitefish market is fairly complex in terms of competition and substitution between species, especially since it has undergone significant changes owing to the growing aquaculture sector in recent years. Due to the large quantities produced at low production cost, the farmed species such as pangasius are often traded at a relatively low price level. As a result farmed species can compete with wild caught fish.

Traditionally, cod was the leading species in the whitefish market, which also consisted of other northern Altantic species such as haddock and saithe. However, in the 2000s farmed fish like pangasius entered this segment, providing an important role to species from aquaculture in the whitefish market. In recent years, the trade in pangasius has grown especially rapidly, which may be due to its characteristics. It is a subtropical species with high growth rates and low production costs. Especially Vietnam is producing pangasius in the Mekong delta and exports pangasius as frozen fillets to over 80 countries (FAO, 2016).

Pangasius is often regarded as natural addition to the whitefish market, due to its characteristics. It has white fillets and a neutral taste. As prices of cod or other whitefish species increased and landings decreased during the last few decades it has become more and more attractive to find cheaper substitutes (Fish Farming International, 2007). Based on the development in market shares from 1988 to 2016, pangasius has seemingly taken over parts in the whitefish market and there is evidence that it also works as substitute for already established species such as cod and saithe. Imports of frozen pangasius fillets are either sold to retailers or caterers (e.g. restaurants, canteens, etc.). The share of direct marketing is low with less than one percent (EU, 2014).

The diagram clearly shows that pangasius is price competitive to the traditional whitefish species. Pangasius accounts for the cheapest price in the market in the last years. In our current pilot study we will address this issue by comparing products from wild fishery with products from aquaculture. In particular we are comparing the German saithe fishery system with the Vietnamese pangasius aquaculture production systems (Destatis, 2016). 

For more information please visit the Fish branch website