June 26, 2008

Overproduction driving down catfish prices in Vietnam

Overproduction from catfish producers are driving down prices, reported Vietnam's Thanh Nien news.

Ngo Phuoc Hau, deputy chairman of the Vietnam Association of Seafood Exporters and Processors, told the newspaper that free breeding had increased the catfish output significantly and farmers had to sell at low prices as supply surpassed demand.

Catfish farmers are blaming local businesses for paying them low prices but foreign buyers, having heard of the over-production in the country are pressuring farmers to sell at low prices too, Hau said.

The Mekong Delta region is home to 84 catfish processing factories and the region's catfish output has reached over 1.2 million tonnes this year.

The lucrative industry have attracted large numbers of catfish farmers over the years and production should be lowered if prices are to be raised, he said.

The Southern Institute of Fisheries Economics and Planning said the catfish industry in the Mekong Delta region is not sustainable at current levels, both economically and environmentally.