May 15, 2008

Vietnam's export price for catfish up 25 percent  on strong demand

Vietnam's export price for Shutchi catfish increased from US$2.8 per kilogramme to US$3.5 per kg, up by 25 percent, due to strong demand specifically from the EU, Japan and the US.

Australia-bound Shutchi exports were up 41 percent, the Ministry of Aquaculture and Rural Development said.

The ministry pointed out that the heightened demand was due to shortage of white meat fish supplier in the EU and lower Tilapia fish production in Taiwan and China.

With robust demand, Vietnam hopes to tap bigger potential for Shutchi trade in the global markets.

However, some industry officials noted that the local price for Shutchi has been declining.

Phan Van Danh, president of An Giang Fishery Association (AFA), said the low domestic price is partly due to aqua enterprises offering low export prices.

Furthermore, the enterprises also have limited capital which only allows them to purchase small volumes of the product.

Currently, the cost of producing 1 kilogramme of Shutchi catfish in Vietnam is around VND14,000 to VND14,5000 (US$0.87 - US$0.90).

Duong Tan Loc, vice president of Can Tho Aquaculture  and Fisheries Association, said with high feed costs and low domestic prices, Shutchi catfish breeders in Mekong delta are suffering big losses.