Processors decry shortage of catfish
05-SEP-2008 Intellasia | Saigon Times Daily page 1
Sep 5, 2008 - 7:00:00 AM
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Catfish processors are now decrying a severe shortage of materials for production as farmers are holding on to their stock to wait for better prices after suffering huge losses when a glut of catfish drove prices below production cost.
But the vision still looks sombre late this year or even next year as the area under catfish cultivation is dwindling because growers are no longer confident in the bond with processors, fearing the high-yield-low-price circle will repeat.
The catfish price in the Mekong Delta has surpassed 16,000 dong a kilo, or nearly 2,500 dong higher than the price last month, but processors still cannot secure enough material for production, according to Vietnam Association of Seafood Exporters and Producers (Vasep).
Chair of Vasep Tran Thien Hai said that most catfish processors in the Mekong Delta had already increased the buying price of raw catfish to 15,500 dong-16,000 dong a kilo, but growers are still reluctant to sell.
"To prepare for the upcoming consumption peak from October on the world market, many processors have been collecting catfish at some 16,000 dong per kilogram although they themselves also face difficulties due to capital shortage," Hai told the Daily.
Processors were also reluctant in lending farmers a helping hand when prices were down.
One or two months ago only, the buying price of catfish in the delta fell sharply, driving many farmers into indebtedness. Many of them have determined not to start catfish cultivation again for fear that the purchase price will be lower than cultivation cost.
The area under catfish cultivation has been narrowed down by hundreds of hectares so far, especially in such provinces as An Giang, Dong Thap, and Can Tho City.
Hai of Vasep stressed that if relevant State agencies did not have immediate measures to encourage growers to continue their catfish cultivation, processors and exporters in the region would face a serious shortage of production materials late this year and early next year.
The agriculture ministry also sympathises with farmers over the situation.
"It's understandable and sympathetic for catfish growers when they hold on to their stock to wait for higher prices because they had incurred big losses over the past months when selling prices were too low," said deputy minister of agriculture Luong Le Phuong.
But, in a talk with the Daily on the solutions for nurturing the bond between farmers and processors, Phuong did not give any specific measures except the general suggestions.
"Beside encouraging processors to raise the buying price for the benefit of growers, the ministry also suggested processors and exporters to negotiate with foreign buyers for higher export prices of processed catfish so that they could raise buying prices for domestic growers," Phuong said.
He noted that the export price had in fact inched up by 5%, allowing processors to raise the buying price for raw catfish.
Phuong also said in coming days, the ministry will make trips to some other countries such as Russia, Northern Europe and Africa to promote the consumption of processed seafood and catfish products.
He also recommended farmers start their cultivation again because the catfish price is expected to be stable since the second quarter next year.
In a related development on financial support for fishermen over the difficulties of high oil prices, as of August 29, owners of nearly 20,000 fishing boats nationwide had received some 187 billion dong in total as subsidies by the government to help them ride out the tough time. Many ship owners have left their boats idle on shore for months due to the high oil price.
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