June 3, 2008

Vietnam's catfish breeders seek assistance as prices plummet

Vietnamese producers of tra and basa catfish seek government assistance as fish prices were about VND1,000 lower than its production cost.

Analysts forecast that about 20 percent of fish breeding areas will be left idle if the situation does not improve. 

Vietnam's export processing companies explained that a fund shortage was hampering them from buying fry fish from breeders.

Industry players said that a tightened credit policy, resulting from local banks raising interest rates and reducing lending limits, is the major reason behind the fund shortage.

Agifish company director Ngo Phuoc Hau said the company had tried to borrow VND150 billion, but was lent only VND80 billion.

Businesses specialising in processing and exporting tra and basa catfish need about US$257 million at present, the Agriculture and Rural Development Ministry said.

Chairman of Dong Thap Province People's Committee Truong Ngoc Han said it was impossible for these companies to buy fish from farmers even when the price of tra and basa catfish was between VND1,000 and VND2,000 lower than its production cost.

Deputy PM Hoang Trung Hai asked the State Bank of Vietnam to co-ordinate with provinces so that businesses could purchase about 300,000 tonnes of tra and basa catfish from farmers until August this year.

US$1 = VND16,250 as of June 3, 2008