July 22, 2010
Minister of Agriculture and Rural Development Cao Duc Phat urges to start a Vietnam Tra Catfish Association for farmers to meet international quality standards and expand their export markets.
Minister Phat asked the Vietnam Seafood Exporters and Producers Association (VASEP) to set up the association. Vice chairman Nguyen Van Duong of the People's Committee of Dong Thap, said an association of this kind could offer accurate information about markets and help farmers manage production and improve quality. He said the association should develop certain sanctions on production and exports to help farmers and businesses avoid anti-dumping lawsuits.
Hung Vuong Seafood Joint Stock Co's general director, Duong Ngoc Minh, said export turnover for tra catfish reached more than US$630 million in the first half of the year and was expected to rise to US$1.4 billion by end of year.
A positive growth rate were seen in export markets such as Russia, the US, South America and Brazil. However, prices for tra catfish fell from US$2.28 per kg last year to US$2.13 per kg this year. The domestic price also fell by VND500-1,000 (US$0.03-US$0.05) per kg, depending on the locality.
Previously, the total area for breeding tra catfish in 10 provinces of the Cuu Long (Mekong) Delta was 6,000 hectares, but fell to 3,749 hectares by end of June. Dong Thap Province has the largest area, with 1,300 hectares; An Giang Province, 1,040 hectares; and Kien Giang Province, 32 hectares.
According to experts, the drop occurred because demand had fallen and feed prices had risen five times since the end of last year, by VND1,000-1,200 (US$0.05-US$0.06) per kg, resulting in significant losses for farmers.
Demand-supply reviews and forecasts were necessary to help prices reach reasonable levels for farmers and businesses and to resolve any current problems.
VASEP deputy chairman Nguyen Huu Dung proposed that the State create more promotions and offer financial support to help farmers adopt international standards certificates such as the GlobalGAP. He also proposed that MARD consider the establishment of a Price Stabilisation and Quality Protection Fund to help catfish farmers apply international standards. Phat noted that such a fund would help the sustainable development of the tra catfish industry.
