May 14, 2008

Vietnam tra fish farmers incur loss of US$18.5 million on low selling price

Thousands of tra farmers in Vietnam's Cuu Long River Delta have incurred losses of up to VND300 billion (US$18.5 million) due to selling price decreases in the market, the VietNam Net Bridge reported.

Earlier this month, Vietnamese processors collected fish at VND14,500/kilogramme, but currently the prices are down to VND14,000/kg - VND13,800/kg (US$0.87 - US$0.85) only.

Meanwhile, fishmeal prices have increased four times since the start of 2008. The production costs soar to VND16,000 (US$0.99) per kilogramme of fish.

Bui Huu Tri, chairman of the Can Tho Seafood Association, said that with the selling price drops and higher feed costs, farmers are losing VND2,000/kg (US$0.12).

Furthermore, very few farmers can access bank loans at this moment. If banks agree to provide loans, they would require a very high interest rate, 1.8 percent per month, observers said.