The production of panga is gradually recovering from the impact of covid 19 (pangasius situation unstable). Most of the panga factories have already recovered 70% of their production, while a few still have 30%-40%. We see from the production perspective; panga supply is very close to normal. However, when we look deeper, the panga supply seems not so stable.
From June till now, almost half a year, the farming of panga raw material is not good. For the panga market, the small size raw material is in a considerable shortage. The farmers didn’t feed enough of the fish, and they didn’t harvest the fish because of the difficulty of transportation. So, most of the sizes are big size now, but the demand for panga now is mainly from the EU, USA, and Latin America, and they prefer the small size. In this case, there are many pending orders from these markets.
The cost of the panga products increased a lot. (Ocean Treasure already mentioned in the recent articles). Due to the policy of pandemic control, factories have to arrange the workers to work and live in the factory. This measure can reduce the possibility for workers to be affected by Covid 19. At the same time, factories must do the acid test every two days to make sure all the workers have no covid cases. Factories still need to continue this measure to maintain their production under the guidance of the government. This makes the price of the unit cost of panga increase at least 100%, and some factories increase 200%.
Zero case regulation makes the factories production unstable
Due to the recent regulation in Vietnam, if there is one case in the factory, the whole factory will close. So, on the one hand, factories want more laborers to expand the production, on the other hand, factories are still afraid that the new workers will be affected. So, the production of the panga productions will keep the same, and no factories want to risk closing the factory once there is a case. Meanwhile, these days, the confirmed cases of Covid bounced back to 10,000 a day compared to 4,000 a day before.
Ocean Treasure reminds all our clients that in this situation, the capacity of the panga product is hard to increase before the new year. Compared to tilapia, panga is still lucky because the Chinese New Year holiday will not affect panga production in Vietnam. To be clear, the panga price will keep increasing until the production is normal. Right now, the panga demand is still strong, and this trend will last until January. One last point, getting a reliable supplier of this product is the priority. Ocean Treasure, we always find solutions.(pangasius situation unstable)