The estimate of world demand for Pangasius catfish (Pangasiusianodon hypopthalmus)

This research described in this article aimed to investigate international market potentials for Pangasius catfish (Pangasianodon hypopthalmus). The monthly export data from Vietnam, which accounts for more than 95% of the global export value, in the period 2007 to 2014, were used to estimate a non-linear Inverse Almost Ideal Demand System of the seven market regions. Prices in all markets are found very inflexible, with own-price flexibilities on −0.200 to −0.917, or −0.419 on average, revealing the option of expanding global production and export without inducing a substantial price reduction. Consumers in all markets except Latin America evaluate Pangasius as a necessary good, indicating that the Pangasius industry is relatively little affected by recessions and booms in the world economy. The major markets are substitutes for each other; therefore, if demand at one market region is reduced, the presence of substitution leads suppliers to find other markets. The results reveal that demand provides stable framework conditions for the Pangasius industry.