Rising tra fish prices in Vietnam a cause for concern

Tra fish costs in Vietnam have hit a brand new excessive since 2019, however insiders are involved that prime costs don’t bode nicely for farmers.

Hung Ca Co Ltd director-general Tran Van Hung stated that it had been the case for a few years that farmers boosted manufacturing an excessive amount of after they noticed costs rising. Consequently, costs usually slumped closely after reaching report highs.

The fish worth peaked in 2018 and led to a rush on manufacturing growth. About one yr later, the worth started to drop sharply in worth on account of overproduction, from 33,000 dong ($1.44) to 19,000 per kilogramme, inflicting losses to farmers.

Hung believes that some corporations have been in all probability manipulating costs to tempt farmers to provide extra, thereby benefiting from the following oversupply.

“Companies profit from falling costs since they buy utilizing deferred funds,” he defined.

Nguyen Ngoc Hai, a farmer in Can Tho metropolis, estimated that solely round 10 per cent of farmers may flip the rising costs to their benefit. The remainder have to attend for his or her fish to mature.

Sadly, market costs will in all probability fall when the fish attain an appropriate dimension on the market, inserting these farmers at a drawback.

Hai stated that “30,000 dong per kilogramme shouldn’t be excessive sufficient to be well worth the effort, however I’m involved that the costs may fall quickly”.

One other farmer Tuan in Dong Thap province shares the priority.

Tuan stated he would promote about 1,000 tonnes of the fish to China at 30,000 dong per kilogramme. With farming prices of 25,000 dong per kilogramme, the batch is anticipated to earn 5 billion dong, sufficient to offset his earlier three-year losses.

Nonetheless, the farmer is apprehensive that fish feed costs have risen by 40 per cent, to 14,000 dong per kilogramme. Fingerlings have doubled in worth to 60,000 dong per kilogramme.

Meaning he’s spending 27,000 dong on each kilogramme of tra fish harvested subsequent season.

“If tra fish costs drop subsequent season on account of overproduction, farmers will in all probability should promote their fish at a loss,” he stated.

Trung Tin, one other farmer in Dong Thap, stated that mounting fish feed and fingerlings costs normally go hand in hand with rising costs.

He estimates that farming prices will rise to over 25,000 dong per kilogramme subsequent season. Meaning all farmers’ efforts might be wasted if the fish costs return to 22,000-24,000 dong.

Le Chi Binh, vice-president of An Giang province’s Pangasius Farming and Processing Affiliation, urged farmers to not increase farming areas amid rising costs as a result of the costs have been anticipated to degree off in July.

He additionally stated that farmers who enhance output regardless would turn out to be unprofitable on account of ample provide.

Vietnam Affiliation of Seafood Exporters and Producers deputy secretary-general To Thi Tuong Lan reported development in Vietnamese tra fish export within the first quarter of this yr.

She stated that tra fish costs within the US market had not too long ago peaked at $3.95 per kilogramme and have been unlikely to develop any increased. The identical can also be true for the Chinese language market.

Accordingly, she believes farmers and corporations ought to align manufacturing with demand to forestall overproduction from reoccurring.

She recommended the manufacturing goal for 2022 equals that of 2021, at round 1.6 million tonnes.

Deputy Minister of Agriculture and Rural Improvement Phung Duc Tien urged localities to maintain farming areas in step with manufacturing plan and to enhance the standard of fingerlings and fish feed, thereby guaranteeing secure output and export.

He additionally known as for shut cooperation between farms and corporations by means of provide contracts so the latter may monitor manufacturing extra carefully.

Final yr, Vietnam produced 1.52 million tonnes and exported $1.62 billion of tra fish.

The manufacturing goal was set at 1.6-1.7 million tonnes and export revenues at over $1.6 billion this yr.

VIET NAM NEWS/ASIA NEWS NETWORK