March 6, 2007

 

Catfish raw materials shortage, soaring prices draw mixed reaction from Vietnam seafood industry players
 

 

The continuous rise in the prices catfish raw materials days before Tet or the Lunar New Year has drawn mixed reaction from seafood processors and farmers.

 

In early February 2007, two new seafood processing plants were set up in Can Tho City, raising the country's total seafood factories to 17 with a production capacity of 350,000 tonnes a year.

 

But the construction of the two new plants, instead of a clear indication of the country's booming aquaculture industry, will be more of a bane for the country's seafood industry as it now adds up to the burden of sourcing of catfish raw materials which lately has been scant.

 

Before Tet, many processing plants in An Giang province had to stop production as they could only get 40 to 50 percent of the materials of the required 70 percent for running the plants.

 

Catfish material prices are increasing dramatically in Cuu Long River Delta's provinces. At the end of 2006, one kilogramme of tra fish was sold at VND15,000 per kilogramme, while the price now is VND17,000 per kilogramme.

 

Southern farmers are happy with the price increases. Nguyen Van Tan, a farmer in Vinh Long province said he had made fat profit of VND300 million with the tra fish farmed on the 2,000- square meter pond.

 

But other farmers are unhappy as they could not collect enough materials to fulfil the orders as processors have already contracts with them when farm prices were just VND16,000 per kilogramme.

 

Farmers say they would incur big losses as the prices keep skyrocketing.

 

Seafood processors said the VND14,000 to VND15,000/kg levels are acceptable, while the VND17,000/kg level is too high. However, as there are too many plants and limited supply of material, it is expected that the price would stay firm at high level in the next two months.

 

The continuous rise in catfish will prompt farmers to hatch artificially. In fact, Cuu Long River Delta has been trying to expand the area for catfish hatchery, despite the warnings of scientists about the environment pollution.

 

The price of catfish breeder have also increased at VND2,400 to VND4,000 per fish. Meanwhile, the food for fish has increased by VND200/kg, making the production cost of fish hatchery increase from VND7,000 to VND11,000/kg.

 

Seafood processors and farmers have been advised to cooperate with each other, which can benefit both the two sides, however, this thing proves to be very difficult to reach.