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Friday May 16, 12:07 PM
Low Prices, High Costs Hit Vietnamese Fish FarmersHANOI, May 16 Asia Pulse - Falling tra and basa catfish prices and rising overheads have cost farmers in the Cuu Long (Mekong) Delta VND300 billion (US$18.75 million) since March. During the last two months the price of tra and basa catfish has dropped by VND1,000 to VND1,200 a kilo to VND14,000 to VND13,500 ($0.87$0.84).
"The feed price has risen by more than 40 per cent, making production costs soar to VND16,000 (US$1) for every kilo of fish. "With the prevailing sale price, farmers are suffering losses of VND2,000 a kilogram," said Bui Huu Tri, chairman of the Can Tho Seafood Association. As a result, the livelihoods of thousands of catfish farmers in the Cuu Long (Mekong) Delta are under threat, he said. Nguyen Thien Phap, the owner of a tra and basa catfish farm in Phu Tan District in the southern province of An Giang said he was forced to sell 100 tonnes of fish to seafood processor Cadonimex in Dong Thap for VND13,900/kg, which he said caused him to lose VND150 million (US$9,375). Despite falling prices, farmers are flocking to seafood processing companies to cut their losses, which puts further downward pressure on the price. Farmers complain that seafood processors are paying below market prices, while the processors blame the banks unwillingness to lend money. As a result, few processors are willing to sign new contracts with fish farmers. Dinh Cong Thanh said he had requested a loan of VND500 million from An Giang Agribank, but was refused. And the few loans that were given came at a high price about 1.8 per cent a month in interest. Some farmers are forced to borrow money on the black market at exorbitant interest rates of about 5 per cent per month. In the Mekong Delta, large numbers of fish farms have been forced to close. In An Giang Province alone, about 20 per cent of fish farming families have gone out of business. "The situation has never been as tragic as nowadays," said Tri from the Can Tho Seafood Association. According to the Mekong Delta Seafood Association, 100,000 tonnes of fish are waiting to be sold every day. However, all 20 seafood processing factories in An Giang Province are reported to be functioning at reduced capacity. As a result, authorities in An Giang, Dong Thap, Vinh Long and Can Tho City have requested financial support from the Agriculture and Rural Development Ministry. (VNA)
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