High farming costs limit Vietnam's production output

Fish farming costs have increased by 50% in the last five years for many reasons that could result in an export production scarcity, predicts the Vietnam Association of Seafood Exporters and Producers (VASEP).

The total catfish for export would reach 0.5 million tonnes this year, with US$1.5 billion in revenue.

The price of fish feed, which accounts for the highest production cost, has jumped in the last few years. It sells at VND8000-VND9300 (US$0.42-US$0.49) per kilogramme, much higher than VND5000 (US$0.26) per kilogramme just five years ago.

Sellers explain that higher dollar prices have made feed import materials more expensive. Soy, for example, has increased by 40% compared to August 2009, while corn rose by 20% and fish powder by nearly 20%.

The prices of aquaculture feed are still selling even though the products are now relatively high but of low quality due to ineffective product control of state management agencies.

Regarding fish diseases, aquaculture experts report that it is possible to minimise risks if water observation and aquatic diseases supervision systems operate effectively; but the system lacks investment. As such, reducing production costs of fish farming does not depend on farmers, but instead on management agencies.