Mekong Delta's seafood output drops as breeders go on strike

Mekong Delta's agricultural output has dropped as many seafood breeders have stopped working due to capital shortage.

 

The farmers need loans to compensate for skyrocketing feed prices, but banks have refused to lend, saying that many farmers have been negligent in paying off their debts.

 

Tan Loc Island in the city of Can Tho's Thot Not District used to be well-known for its tra fish breeding farms. The industry had developed rapidly and many once poor farmers had become rich quickly several years ago.

 

In the past, when tra fish went for good prices, Tan Loc was called "the island of billionaires" as farmers jetted around on their motor-boats along the Hau River. Many even flooded the area's roads with brand new cars.

 

However, the island of billionaires now has become the island of debts. According to Tan Loc Ward's People's Committee, the issue began in 2008 when tra fish prices plunged and farmers were unable to sell due to an oversupply.

 

In 2009, many households continued investing large funds in their farms with the hope of regaining the lost capital. Nevertheless, the prices still remained low, leading them to pile debts on top of their debts.

 

In the beginning of this year, tra fish prices increased slightly but then continued falling alongside surging feed prices. Tra fish breeders in the area now owe banks about VND 100-200 billions (US$5-10 million) in total, and many simply can't pay. The price for 1,000 square metres of land to breed tra fish in Tan Loc used to cost from VND 200-300 million, but it is now worth only half that and there are no buyers.

 

Departments of agriculture and rural development in the delta provinces have proposed that banks reconsider their credit policies to help breeders reinvest and maintain production to pay debts.

 

Le Van Tho, director of the Bank for Agriculture and Rural Development in Can Tho, said that it is necessary to reduce spontaneous breeding and strengthen the direct links between breeders and big businesses to sustainably develop the seafood industry.