Cam Vang – a new product that contributes to enhancing export values and competitiveness of Vietnamese tra fish in the international market

15 | 10 | 2009

According to data from General Department of Vietnam Customs, in the first 8 months of 2009, Vietnam exported 382.7 thousand tons of catfish, reaching US$ 860 million in value, reducing 7.3% in volume and value compared to the same period of 2008. Catfish export volume and value of Vietnam to large markets were down compared to the same period last year.

Tra fish export is not really well again

According to data from General Department of Vietnam Customs, in the first 8 months of 2009, Vietnam exported 382.7 thousand tons of Tra fish, reaching US$ 860 million in value, reducing 7.3% in volume and value compared to the same period of 2008. Tra fish export volume and value of Vietnam to large markets were down compared to the same period last year. The sharpest reduction was in Russia, at 68.1% in volume and 67.7% in value, only reaching 26.6 thousand tons in volume and US$ 43.1 million in value. Although Tra fish export to Russia continued in April 2009, Tra fish export volume and value of Vietnam to the market is not really well again. If having compared to the 2009 plan on Tra fish volume exported to Russia (reaching about 100,000 tons), the volume only reached 27%. Meanwhile, Tra fish volume exported to Russia at the same period last year reached about 83% of total export volume of entire year (in 2008, total Tra fish export volume of Vietnam to Russia 120,000 tons). In addition to Russia, Tra fish export of Vietnam to large markets such as Ukraine, Egypt and Holland also reduces sharply compared to the same period of 2008. Especially, Tra fish export to the market reduces 40.4%, 7.7%, 25.1% in volume and 44.5%, 24.2%, 25.9% in value compared to the same period 2008. Accordingly, Egypt does not reduce much in Tra fish import (only reducing 7.7%) but average export price to the market in the first 8 months of 2008 reduced 17.3% so that export value reduced 24.2% compared to the same period of 2008.

However, up to August 2009, Tra fish export growth of Vietnam was quite good in several markets such as the U.S. (rising 61.8% in volume and 60.7% in value), Germany (rising 11.4% in volume and 13.8% in value) and Mexico (rising 35.1% in volume and 24.7% in value).

Export volume, value and price of catfish fillet to the U.S., years 2008-2009

Source: USDA

That outputs for tra fish have yet to really recover has constrained price increases of this fish while prices of feed ingredients are rising very strongly.

By early-October 2009, the price of white-meat tra fish raised in ponds in An Giang fluctuated around VND 14,800-15,200/kg, about 8,6% higher than the level at the start of the year yet 6,7% lower than the peak levels recorded in April and May 2009. In fact, this price level has been maintained since late July regardless of the positive information about an on-going recovery of the export of tra and basa catfish, especially to the Russian market. This demonstrates a fact that purchasing power of processing and exporting plants for tra and basa catfish hasnot increased sharply yet while fish supplies from fish household breeders are on the rise.

In the context of persistently low prices of tra fish, prices of all kinds of feed ingredients such as rice bran and sliced cassava (accounting for 60-70% of raw materials needed for the processing of finished feed) have advanced exceptionally sharply since early 2009. As of early-October 2009, the price of sliced cassava increased by 70% while that of rice bran climbed by up to 39,6% compared to early 2009.

Correlation between the price of tra fish and those of feed ingredients in 2009 (Prices in the second week of 2009 =100)

Source: AGRODATA (www.agro.gov.vn)

Vietnam dealing with technical barriers

While catfish of Vietnam has faced more market barriers, especially from food safety and sanitation, which has made managers, enterprises and raisers have to suitable changes in production and processing. Establishing bar code for catfish under GAP, SQF standards (origin) and cooperation between feed enterprises, catfish processing and exporting enterprises and farmers are actions which has showed that Vietnam is gradually meeting catfish requirements in both nutrition and international standards on food safety and sanitation.

Cam Vang – a new product that contributes to enhancing export values and competitiveness of Vietnamese tra fish in the international market.

In the face of requirements associated with the production of tra and basa catfish which must be of high nutritional values and satisfy international standards of hygiene and food safety, for the first time in Vietnam, Cam Vang Limited Company has adopted an advanced technology - separating oil with the solvent extraction method - to produce Cam Vang – a new product which is rich in protein, safe and economically effective. It also helps reduce animal diseases. The results of the research project "The possibility of using oil-extracted rice bran to feed fish – Cam Vang to feed tra fish" conducted by Faculty of Fisheries under Can Tho University in 2005 show that:

1. Cam Vang is of higher nutritional values (Protein: 16.4%, Vitamin B1: 35mg/kg) than dried rice bran (Protein: 12.6%, Vitamin B1 25.8 mg/kg), so it contributes to better growth of fish.

2. Cam Vang which is stored for 4 months can still be good enough to feed fish thanks to its low fat content and oxidation indicator (2.7% and 11 meq/kg of fat substances). However, dried rice bran, after being stored for one month, cannot be used to fish feed because of its high fat content and oxidation indicator (12% and 35 meq/kg of fat substances).

3. Cam Vang can be mixed in fish feed formulation up to 60% without affecting the growth, survival rate and FCR of tra fish. The research also reveals that the ability to digest Cam Vang of the fish is also higher than in the case of dried bran.
AGROINFO/CamVang company

Role of industrial feed towards catfish industry of Vietnam

Vietnamese fish farming industry have been changed speedy since 2005 up to now, especially Tra fish farming. The booming of Tra fish farming from 0.65 million tons (VN statistics) in 2005 was up to 1.3 million tons in 2009, which rose twofold after 4 years. The success is partly due to role of industrial feed types. In the period of 2006-2007, cage farmed fish together with home-cooked feed types was popular while currently, pond farmed fish with industrial feed is gradually replacing. Most of Tra fish farmers changed to using industrial feed because they emphasis on food safety and hygiene, omega-3 enriched pangasius, cost effectiveness, traceability to meet export market demand. In such difficult context, fish price is continuously down so current scale advantage (industrial farming) holds the upper hand. Thus, the industrial feed will take over the market due to its better quality and control. (Opinion of Mr. Philippe Serene– General Director of Viet Phap Feed Production Joint Stock Company (Proconco)).

Contribution of Cam Vang towards common success of industrial feed

One issue that farmers as well as establishments producing animal feed and seafood products are now extremely concerned is the instability of the natural quality of rice bran. The quality of rice bran that is not processed gradually deteriorates over time after being milled, and oil in the rice bran is quickly be oxidized, thereby making it spoil. Once the rice bran is spoiled, using it to feed fish will affect the immune system of the fish; toxins will gradually be absorbed into their livers, which results in a high death rate. All of these invisible reasons lead to increasing costs for aquaculture farmers. Our company is using Cam Vang – a type of oil-extracted rice bran to feed Tra fish because of the stability of its quality in all aspects: no taintedness, no impurities, low humidity, long storage self-life, richness of protein, vitamins and minerals. Therefore, it should always bring about good quality and quick growth of farmed fish, reduce wastefulness and water pollution, dead numbers and bring economic effectiveness for farmers, especially the quality and output of fillets. (Opinion of a director from a seafood processing company in Can Tho).

There is a long tradition of using rice bran to feed cattle among Vietnamese farmers. Average volume of rice bran supplied to the animal husbandry is three million tons on a yearly basis. Especially, for aquaculture, its production is estimated to reach 1.5 million tons in 2010, which means the equivalent of one million tons of rice bran to be needed. Today, using extracted rice bran- Cam Vang– the quality of which stabilizes after the preliminary treatment process – in fish farming has proven optimally effective. Especially, Cam Vang which owns an oil content of 3-5% and a protein content of 16.4% is very good for cattle, poultry and aquatic animals. (Opinion of Associate Professor cum Doctor Hoang Duc Nhu – lecturing at the National University of Ho Chi Minh; Former Director of the Ho Chi Minh Institute of Food Industry).

AGROINFO

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