Mekong Delta to recover pangasius farming

According to enterprises in Mekong Delta, though pangasius processing plants  are  facing the serious  shortage  of  raw  materials,  pangasius farmers  leave  their  ponds  because they  are  afraid  of  losses  in  sales  or  it is  hard  for  them  to  afford  the  increasing input  costs  and  a  high  loan rates

Experts  says  the  short  of  raw  pangasius  will  last  in  long  term  if there  are  no effective  measures   to  get  farming  areas  rebound.  And  the target  set  for  2011  could not be reached.

Currently, though enterprises took profit of rise of 9.3 percent in the USD/VND exchange rate evaluation, many of them still suffered losses in sales due to rising input cost, and they had to restrict their production. According to Le Chi Binh – the Vice President of An Giang Fisheries Association (AFA), the well-trimmed pangasius fillet price is expected to be modestly sold at US$3-3.05/kg, and the untrimmed pangasius fillet price stops at US$2-2.1/kg, up 18-20 percent compared with October, 2010.

While the production cost of well-trimmed pangasius fillet is US$3.15/kg after a soar of 60 percent in raw pangasius price (compared with the mid-2010), higher price of oil pushing transportation cost up 12 percent, rise of 10 percent in electricity cost, high loan rate of 20 percent a year…That exceeds to the enterprise capacity. In fact, they are pushed to spend several billion VND more within a month, if they want operate a plant with a production capacity of 100 MT/day.

Most enterprises in Mekong Delta are suffering lack of raw pangasius. Those have their own pangasius farming areas could ensure only 50-60 percent of production capacity of their plants. Thuan An Fisco Co.,Ltd plant processed just 40 MT/day while its designed capacity of production was 140 MT/day. Although the enterprise is farming pangasius in 40 hectares, it still failed to ensure processing demand, Khuu Thi Cam Nhung, the enterprise’s Deputy Director said.

In order to overcome difficulties to recover pangasius industry, it is necessary to take measures to encourage pangasius farmers. Exporters rethink pangasius export price;  Processors set out an effective pangasius plan with appropriate capacity. The government  must set master plan for pangasius farming.

Source: VASEP

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