Vietnamese Pangasius Producers Consider Price Hike
Vietnam's five largest basa and tra producers are discussing measures to increase their export price by 5 percent, VOVNews reported today.
Deputy Minister of Agriculture and Rural Development Luong Le Phuong says the five companies are working together to collectively raise the price paid to pangasius farmers, which will be the ceiling price for all Vietnamese pangasius exporters.
The Ministry of Agriculture and Rural Development (MARD) has also directed the Quality Management Department to strengthen inspections and quality control in the Mekong Delta to prevent unfair competition and price reduction.
Through July, Vietnam's pangasius exports totaled $762.7 million. Russia and Ukraine remain the two top destinations of Vietnamese pangasius.
Due to weaker export markets and price decreases, many Vietnamese farmers are unable to reinvest in their operations. Phuong says that even if processors pay VND14,000 to 14,200 per kilogram for pangasius, farmers still lose VND1,200 to 2,000 per kilogram.
He warns that if processors do not raise the price, many farmers will be forced stop raising fish by early 2009, resulting in a pangasius shortage.