Price rises insufficient for Vietnam catfish farmers

 

 

Catfish processors in the Mekong Delta have raised tra catfish prices by VND200-VND400 per kg, but farmers are still only able to breakeven.

 

The current prices are VND14,800 to VND15,000 per kg for white meat and VND13,500 to VND14,500 per kg for yellow meat tra catfish.

 

The falling demand and rising costs have forced thousands of catfish farmers in the Mekong Delta to sell their businesses and go bankrupt.

 

Since the beginning of 2009, feed prices have increased steadily, dealing a strong blow to tra farmers. The VND500-VND600 per kg feed price increase has made the average production cost increase to VND15,000 per kg.

 

Nguyen Van Khoi, deputy director of the Soc Trang Agriculture and Rural Development Department, said the cost of fish feed makes up 85 percent of a farm's expenses. Most farmers are feeding their fish with local feed, which makes them vulnerable to prices set by the feed producers. 

 

To offset the rising cost of fish feed, larger farms have been allowed to buy in bulk at reduced prices. However, they are still struggling to make a profit.

 

It was estimated that about 12,000 tra and basa farming families, representing 90 percent of fish farmers in the delta, had been losing money.

 

According to the region's agriculture and rural development authority, the area of catfish breeding in Vietnam this year is just 3,690 hectares, 60-percent less than 2008.

 

About 80 percent of catfish farms will go bankrupt if market conditions do not improve, said an expert from a seafood cooperative in Vinh Long Province.

 

Vietnam's fish farmers are also reportedly earning less profit than processors even though they bear higher risks and more expenses.

 

Seafood processing factories have also suffered from this crisis as many were forced to run at only 50 percent of total capacity, while thousands of workers had to stay home from work due to a lack of production materials.

 

US$1 = VND$17,830 (Sep 22)