August 24, 2010

Mekong Delta catfish breeders may face bankruptcy

Since early this year, tra catfish exports have risen but many breeders in the Mekong Delta are on the verge of bankruptcy as they have to sell the fish at below breeding costs.

Exporters and seafood processors have been buying tra catfish for VND15,500-16,000 (US$0.80-0.82) per kilogramme, while breeding costs have climbed to VND16,000-16,500 (US$0.82-0.85) per kilogramme.

Mekong breeders have suffered losses for the third consecutive year, and many of them have been forced give up their vocation as a result. Exporters have not cooperated with each other on pricing, and importers were controlling prices as a result, hurting local breeders, said Lam Minh Chieu, chairman of the An Giang Province People's Committee.

He said Mekong Delta provinces have asked the Prime Minister for permission to establish a tra catfish association to formulate development strategies and production plans; and to expand export markets. If the PM's approval is obtained, the association is expected to be established in the third quarter of this year.

Chieu said that the association would help resolve current problems in the sector and protect breeders. It would work to ensure proper investment in production techniques, strengthen cooperation between breeders and exporters, and improve quality.