April 23, 2012

Vietnam's tra fish price plunges

The price of Vietnamese pangasius fish, or tra fish has suffered the deepest plunge since last year despite the current material tra fish shortfalls for processing and exporting, pushing local farmers into the red with farms abandoned en masse.

Since the start of the week, material tra fish prices have continued on a strong downtrend to below VND20,000 (US$0.96) a kilogramme in An Giang, Dong Thap and Tien Giang provinces in the Mekong Delta, lower than farmers' production costs.

One kilogramme of white-meat fish eligible for export is priced at a meagre VDN20,000-20,300 (US$0.96-0.97), down by VND2,000 (US$0.10) a kilogramme from 10 days ago, said farmer Tang Trinh in Dong Thap Province.

This means fish prices have slid by VND7,000-7,500 (US$0.34-0.36) a kilogramme compared to this year's record high of nearly VND28,000 (US$1.34) of the same category.

Meanwhile, local seafood processors and exporters are paying only VND18,500-19,000 (US$0.89-0.91) for one kilogramme of other kinds of tra fish, the lowest level recorded since last year. According to the An Giang Fishery Association (AFA), tra fish meeting export standards is being bought at a price of VND23,000-23,500 (US$1.10-1.13) a kilogramme by eight local large seafood firms.

In reality, local farmers could sell the yield at only VND20,000-21,000 (US$0.96-1.01) for the first-grade fish, and VND19,000-19,500, (US$0.91-0.94) for one kilogramme of grades two and three as observed by the Daily. "Local firms insist on pulling down tra fish prices and we have no choice but to sell all or we will incur more losses," farmer Vo Van Thanh in Chau Thanh District said. "We spend at least between VND23,000-24,000 (US$1.10-1.15) producing one kilogramme of tra fish, so we are suffering a loss of between VND3,000-5,000 (US$0.14-0.24) for one kilogramme with the current low price," Trinh stated.

The same situation has also hit tra breeder fish, with its price staying at VND35,000 (US$1.68) a kilogramme for grade-one fish and VND38,000-40,000 (US$1.82-1.92) for the second grade. About 30% of local farming areas have been deserted in Chau Thanh District, the key commercial tra fish farming area in Dong Thap Province.

As of last Friday (Apr 20), farmers in the province had abandoned tra fish farms totalling 80 hectares, reported the provincial Department of Agriculture and Rural Development. Trinh attributed the lamentable situation to the sharp price fall of tra fish discouraging farmers regardless of dipping breeder fish prices. Farmers in Chau Phu District in An Giang Province said suspending farms would keep rising if tra fish prices remain at the current lows.