March 11, 2011

 

Vietnam's seafood exporters face tra fish shortage

 

 

Many Vietnamese seafood exporters and processors in the southern provinces are in panic over the severe shortage of tra fish resources, as their processing plants are running far below the intended capacity and workers are underemployed.

 

The critical shortage of tra fish has been lasting for over three months now, and the problem is not to be addressed in several months to come, said Ngo Phuoc Hau of the Vietnam Association of Seafood Exporters and Producers (Vasep).      

 

Hau, who serves as a member of Vasep's executive committee, said on Tuesday (Mar 8) that the shortage of tra fish mostly resulted from the scarcity of breeder fish and the fact that many farmers have abandoned their ponds after incurring big losses last year.

 

In 2010, prices of the live fish at times tumbled to some VND16,000 (US$0.77) a kilo, while the price of feed increased strongly, resulting in big losses for farmers. In addition, farmers also faced difficulties in accessing bank loans to invest in their farms.

 

At the moment, the southern provinces of the country had some 100 processors and exporters of tra fish, who all are bemoaning the shortage although they have chased up the price to VND25,000 (US$1.20) a kilo.

 

"Though the exporters and processors are buying the tra fish at a very high price at VND25,000-26,000 (US$1.20-$1.25) per kilogramme, they are still finding it very hard to collect enough materials," Hau said.

 

He predicted the scarcity of tra fish materials would continue in the coming months because farmers need at least six or seven months for rearing the fish to maturity.

 

"Early this year, domestic seafood exporters and processors expected to have one million tonnes of tra fish for export in 2011, but the figure has now been revised down steeply," Hau said.

 

The export price of tra fish fillets is now increasing steadily.          

 

"The export prices of tra fish has increased by 30% compared to the end of last year. Tra fish shipped to Europe fetches some US$3.2 per kilo, while the export price to the US market is higher at nearly US$4 per kilo," he said.

 

The higher export price is expected to generate some US$1.5 billion in total export sales of tra fish this year, a slight increase compared to US$1.4 billion in 2010.

 

According to Vasep, the country attained export revenue of some US$210 million from tra fish in the first two months of the year, a little reduction compared to the same period of last year.        

 

Truong Dinh Hoe, secretary general of Vasep, said that the total output of tra fish products for export this year will shrink by 40% to only 350,000 tonnes this year compared to some 600,000 tonnes in 2010.