February 17, 2009

Experts warn that catfish farming in Vietnam's Cuu Long or Mekong Delta needs to be revitalised as farmers have already stopped farming due to huge profit losses.

 

In a meeting convened by the Ministry of Agriculture and Rural Development (MARD) last week, practitioners say that the industry should be treated as a "strategic export item" to tighten links between farmers and processors in a way to reduce input prices.

 

Duong Tan Loc, vice chairman of the Can Tho Seafood Association said processing enterprises should place orders directly with farmers, which is not the case now.

 

Huynh The Nang, vice chairman of the Peoples Committee of An Giang Province, echoes the same sentiment, stating that processing enterprises should enter into contracts with other farmers.

 

Nang, whose home province is a major catfish producer in the Delta, added that provinces should not encourage farmers to resume production until "they're assured of outlets."

 

The Department of Aquaculture under MARD noted links between farmers and processors had not been strong.

 

Tightening up the links was crucial to tip the balance back in catfish farming, Nang said.

 

Le Vinh Tan, deputy chairman of the Peoples Committee of Dong Thap Province, suggested processors and exporters hire farmers to raise catfish for them as an alternative model to farming and processing as activities independent of each other.

 

High prices in the world market had improved catfish farming to over 6,000 hectares in the Delta last year, with an output of more than 1.1 million tonnes, exceeding processing and export demand.

 

However, falling export prices as processors competed with each other to get more overseas buyers sent local catfish prices down, inflicting huge losses on farmers who were forced to abandon 35 percent of their ponds.

 

The MARD is urging the government to lift the ban on catfish feed imports of catfish feed to prompt local suppliers to lower their prices.

 

The ministry's Department of Fisheries said local catfish farmers are enduring local catfish feed prices that are 20 to 30 percent higher than those coming from Thailand and China.

 

Nguyen Huu Dung, vice chairman of the Association of Seafood Export and Processing Enterprises, said that input costs accounts for 80 percent of the farmers' total expenses.

 

Loc suggested that the government should reschedule loans for farmers who have suffered losses to enable them resume production.

 

Nang said catfish export turnover in 2008 topped US$1.5 billion.

 

With this huge profit, Nang said catfish should be given equal status to that of rice to receive adequate attention from policy makers.