High input prices snag Mekong farmers

Despite an increase in fish prices, many fish farmers in the Cuu Long (Mekong) Delta region have had to reduce the area they farm to avoid losses, according to Pham Van Quynh, Director of Can Tho’s Agriculture and Rural Development Department.

Quynh revealed that 50 percent of the fish breeding ponds are not being used in Can Tho. Meanwhile, in Dong Thap Province, out of 1,800ha used for breeding catfish in 2008, 50 percent are being used for other services.

Fish farmers in Hong Ngu District have had to sell their fish as well as farming equipment.

An Giang Province is faced the same situation with 50 percent of 1.400ha of ponds being used for different purposes.

“I used to sell millions of fish every month. However, since the start of 2010, I have sold less than a hundred thousand. Many people have stopped breeding fish due to losses,” said Le Van Nghia from Vinh Xuong Commune, Tan Chau District in the southern province of An Giang.

Farmers explained that they were struggling to make a profit.

“Despite the fact the price of fish has increased to VND17,000 (US$0.89) per kilogram, the price of feed has increased five folds,” said one farmer.

Moreover, other fees like electricity and pesticides have made the total production cost higher.

“If you add together the average production fees to farm one kilo of fish, they equate to over VND17,000, more than the price of the fish,” said Duong Nghia Quoc, Deputy Director of Dong Thap Agriculture and Rural Development Department.

The increased cost of production requires more investment but farmers find it difficult to borrow money from banks and feed shops don’t want to let customers buy products on credit.

“Clearly, the cost of production is high and the risk of making a loss is too great for some farmers,” said Pham Van Quynh.

Farmers are not the only ones suffering, fisheries are too.

“Previously, in order to process 5,000 tonnes of fish it cost VND70 billion (US$3.6 million), but now it’s gone up to VND 80 billion ($4.2 million),” said the Director of a fishing enterprise in Can Tho.

The reduction in fish breeding ponds has led to lack of supply for food processing enterprises.

In An Giang, many seafood factories have had to cut 30-50 per cent of capacity due to a lack of fish, according to Nguyen Van Thanh

“Strict control of the price of feed is necessary as well as making loans available to farmers so that they can continue to do business without making a loss,” concluded Thanh.

VIETNAMNEWS

Tags: Vietnam agriculture, vietnam fish prices