Catfish Prices Fall Sharply in Vietnam

Catfish Prices Fall Sharply in Vietnam

The prices of raw tra and basa catfish materials for export production in the Mekong Delta region have on May 17 fallen sharply to around VND10,200-10,500 a kilo of grade one, VND8,800-9,000 a kilo of grade two,  and even VND7,800-8,000 a kilo for lower grade catfish.

The indexes were VND2,000-2,500 a kilo lower than that of two months ago and only a half compared to June 2004 of VND15,500-16,000 a kilo, the An Giang Fish Association (AFA) said. (US$1=VND15,805).

“At these prices, catfish farmers are expected to lose around VND1,000-2,000 a kilo. Meanwhile, several farmers still cannot sell their products, even registering months in advance, the association said.

According to the Vietnam Fishing Association and the Ministry of Agriculture and Rural Development, the major reason for the catfish price decrease was the unhealthy competition between Vietnamese producers and exporters, not surplus supply.

“The Vietnam Association of Seafood Exporters and Producers (VASEP) has asked its members not to sign contracts at prices below US$2.9 a kilo. However, several firms currently offer only US$2.6 a kilo, down by 10-15 per cent compared to deals signed at the trade fair in Brussels, in late April this year, resulting in sharp falls on the domestic market,” it said.

The Fish Association of An Giang Province, the country's largest catfish raising area, has immediately asked the government to intervene to stabilize the catfish prices in the Mekong Delta region.

Vietnam's Ministry of Fisheries has approved an action plan on the quality and trademark of its "tra" and "basa" catfish, targeting an annual export value of US$800 million by 2010 with the Mekong Delta supplying one million tons of catfish a year.

Vietnam produced around 315,000 tons of tra and basa catfish products in 2004 with around 100 tons per hectare on average, up 42.85 per cent against 2003, according to the Ministry of Fisheries.

At present, the EU takes 45 per cent of Vietnam's catfish export, the US holds about 25 per cent, and other markets take the rest. The US imposed antidumping duties on Vietnamese catfish fillets in July 2003.

• VietNamNet