February 28, 2008

 

Vietnam's catfish industry: Big exports, small profits
 

 

In Vietnam's Cuu Long River Delta, farmers are grumbling over low tra prices despite upbeat news by authorities the area would see a significant increase in tra exports this year.

 

Cuu Long River Delta,  the tra farming hub of the country, is expected to produce more than 1 million  tonnes of materials this year, Vietnam Net Bridge reported.

 

The revenue gained from these exports is expected to rise US$200 million  to US$120 million.

 

The predictions earlier have sparked a flurry of fish farming activity in the region from farmers expecting to reap profits from massive exports.

 

However, low selling prices for tra and high feed prices have dashed any hopes of reaping a windfall.

 

Only investors who can get support from local authorities, gain easy access to loans and reach the economies of scale required can stay afloat.

 

Tra producers said that with the current sale price of VND15,500/kg (US$0.97), farmers can earn VND500 only for every kilogramme, the equivalent of 3 US cents.

 

Meanwhile, prices for fish feed and vaccines are rising every week, further strangling tra farmers.

Analysts said that the price of material tra may rise to VND17,000/kg this year, the level which was seen once in 2007.

 

However, unpredictable weather patterns and water pollution would combine to reduce output, the said.

 

Le Chi Binh, Deputy Chairman of the An Giang Farming and Seafood Processing Association told the paper that fish processors are the only ones benefiting from higher exports currently, driving down prices and reaping fat profits while leaving farmers to deal with low returns.

 

Binh warned that farmers interest may wane and leave processors with no materials to process if the situation continues.