February, 28 2013

 

Mekong Delta to devise solutions on rice, seafood dilemma

 

 

In order to cope with long-term problems that could affect export and production of rice, catfish and shrimp this year, top officials have urged local authorities in the Mekong Delta to work out solutions.

 

"Authorities and localities should work together closely to cope with long-term problems and meet buyer demand," said Deputy Prime Minister Hoang Trung Hai at a meeting held in Dong Thap Province Tuesday (Feb 26). "Associations should also strengthen their role in the business community."

 

The deputy PM noted that policies supporting agricultural exports must be carefully reviewed before implementation so that anti-dumping lawsuits and other negative consequences can be avoided. He also urged the Mekong Delta provinces to establish a Tra Catfish Association.

 

At the meeting, authorities announced that 211,000 tonnes of the winter-spring rice in Mekong Delta provinces had been bought for temporary stockpiling since February 20. This followed the Prime Minister's decision to purchase one million tonnes, about 30% of the total amount of paddy for sale in the region. The activity has helped to slightly increase the price of rice, by around 5%, in the provinces to VND4,400 (US$0.21) per kilogramme.

 

"Farmers and provincial leaders are pleased about this. It has helped to increase the export price by US$10–15 per tonne," said Truong Thanh Phong, chairman of the Vietnam Food Association (VFA). Under the decision, the Government will cover 100% of interest rate on loans for businesses to buy rice from February 20-March 31. At least 119 companies have been chosen to join the programme.

 

At the meeting, industry officials discussed the status of seafood production and sales in the region, saying that this would be a tough year for tra catfish exports because the EU, a major market, remains in economic crisis. The Ministry of Trade and Industry expects that turnover of tra exports will total US$1.2–1.5 billion.

 

"Farmers have had difficulty with loans because they do not have any assets and the term for borrowing is around four months, while they need eight months to feed tra catfish," said Vu Van Tam, deputy minister of the Ministry of Agriculture and Rural Development.

 

In 2012, shrimp exports fell 6.6%, compared to 2011. Other problems loom. This year, shrimp exports are faced with anti-dumping lawsuits from the US. Technical barriers from Japan and South Korea have also prevented the use of ethoxyquin, a quinoline-based antioxidant used as a food preservative and pesticide.

 

Vietnam is expected to have turnover of between US$2.15 billion and US$2.2 billion for shrimp exports this year. The Ministry of Trade and Industry said that turnover would range from US$5.6 billion (a drop of 8.7%) to US$6.4 billion (an increase of 4.3%), in comparison with 2012.

 

"The Government should invest in an information technology system for the Ministry of Agriculture and Rural Development to manage seed and feed and veterinary medicine. This would limit risks in production," said Truong Dinh Hoe, general secretary of the Vietnam Association of Seafood Exporters and Producers.

 

He also noted that the Government should issue policies on exports to China as the quantity of high-quality seafood exports to that market had significantly increased recently.

 

"We must also resolve the shrimp anti-dumping lawsuit with the US. If we do not do this properly, another lawsuit will be filed against tra catfish and other seafood exports," he said.

 

Lee Minh Quang, chairman of Dong Thap Province, asked the Government to use time, quantity and floor price as the criteria for implementation of the stockpiling programme.