An online conference was held recently to discuss the production and consumption of tra and basa catfish in the Mekong Delta provinces and cities which include An Giang, Dong Thap, Can Tho, Vinh Long, Tien Giang, Hau Giang, Ben Tre and Soc Trang.

The conference was attended by Deputy Prime Minister Hoang Trung Hai, Minister of Agriculture and Rural Development Cao Duc Phat, Minister of Industry and Trade Vu Huy Hoang and SBV Governor Nguyen Van Giau.

No outlet for 300,000 tonnes of catfish

According to a report from the Aqua-culture Department under the Ministry of Agriculture and Rural Development (MARD), tra and basa catfish producers in the Mekong Delta are finding themselves in a difficult position as around 20 percent of their ponds have not yet been stocked with breeding fish due to their failure to sell the catfish.

Vice Chairman of the Can Tho municipal People’s Committee Nguyen Thanh Son attributed the gloomy picture for tra and basa catfish breeding to capital shortages. As a result, businesses did not buy fish from breeders as they do not have enough money to buy feed and re-stock.

Vice Chairman of the Soc Trang provincial People’s Committee Truong Ngoc Han said that as many as 20,000 tonnes of breeding catfish in his province have not been sold. The same situation has also happened to the province of Vinh Long with 15,000 tonnes of catfish remaining unsold.

Chairman of the Dong Thap provincial People’s Committee Truong Ngoc Han said that tra and basa catfish are now being sold at VND13,800-14,300 per kg while the cost of breeding 1 kg of catfish has risen to VND16,000 per kg, making farmers face a loss of between 1,700-2,200 per kg. The reason for the current low prices is attributable to some businesses conducting unhealthy competitive practices.

In fact, businesses can still negotiate export contracts at prices ranging from between US$3-3.4 per kg but have had to reduce the selling price to US$2.6-2.8 per kg.

In fact, businesses can still negotiate export contracts at prices ranging from between US$3-3.4 per kg but have had to reduce the selling price to US$2.6-2.8 per kg. The low export price has seen a reduction in the prices of tra and basa catfish on the domestic market, and this has a strong impact on local farmers, Mr Han said.

Huynh The Nang, Vice Chairman of the An Giang provincial People’s Committee, said that at present the province has 69,000 tonnes of tra and basa catfish over 1kg. However, he said, local farmers still cannot sell because businesses are loath to buy while foodstuffs prices continue to rise. In such circumstances, local farmers are likely to go bankrupt in the near future, Mr Nang added.

Currently, the tra and basa output in the Mekong delta region is estimated at about 120,000 tonnes. By August 2008, the region’s total output will have reached more than 300,000 tonnes.

Priority given to breeding businesses

When answering questions from local authorities and businesses, the Governor of the State Bank of Vietnam, Nguyen Van Giau, affirmed that although monetary policy has been tightened, the banks have still provided loans for tra and basa businesses to develop their breeding activities.

Mr Giau said: “We will create the best possible conditions for businesses to access loans in order to ensure that fish breeders have a market for their stocks. Each province selected two prestigious businesses and informed us by 9am on June 2 as we held a meeting the same day to instruct the banks to offer loans.”

According to Minister of Industry and Trade, Vu Huy Hoang, with an estimated export turnover of US$1.2-1.4 billion in 2008, tra and basa catfish will be strategic export items. The Ministry of Industry and Trade will cooperate with the relevant ministries and agencies to deal strictly with businesses which operate in an unhealthy competitive manner and commit trade frauds so we can increase the export value of Vietnamese tra and basa catfish, he said.

Minister Hoang also asked the Government to add tra and basa catfish to the list of key exports so that businesses can enjoy preferential treatment in the near future.

Speaking at the online conference, Deputy PM Hoang Trung Hai stressed on the need to provide businesses with loans to help them purchase about 300,000 tonnes of fish from local farmers from now until August 2008. It is also essential to create closer links between businesses and fish breeders by winning contracts to buy seafood, he said.

The Deputy PM also urged the Ministry of Agriculture and Rural Development to cooperate with the Ministry of Industry and Trade to promptly deal with businesses which commit trade frauds and are involved in dumping.