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Tra fish drowning in ponds of tears
Seafood processing companies say that tra fish prices have been sliding dramatically due to the world financial crisis – importers are unable to pay for imports.
The credit tightening policies applied in many countries in the world has led to the fact that importers do not have money to pay Vietnamese exporters upon delivery as they did previously. The importers have asked Vietnamese enterprises to allow them to pay later, after they can sell products. This has led to the slowdown of tra and basa exports.
Fish prices plummeting
According to the An Giang Industry and Trade Department, white-meat material tra fish has decreased by VND800/kg over last week, now selling at VND15,800-16,000/kg, while pink-meat and yellow-meat fish are selling at VND14,800-15,300/kg, down by VND900-1,000/kg. Big-size (over 1kg) white-meat fish has the price of VND15,300/kg.
In Can Tho city, first-class material fish is selling at VND16,000/kg at Thoi An Cooperative in O Mon district. Big-size fish are selling at VND15-15,300/kg.
Vietnam’s tra products are now available in 80 countries and territories. However, the three main markets, the US, EU and Eastern Europe, consume 80% of total exports. If Vietnam loses the three markets, catfish exports will come to a sudden halt.
The Mekong River Delta now has some 120 seafood processing companies for export which have the capacity of 3,200 tonnes a day. In 2007, tra exports brought $1bil in turnover.
Luong Hoang Manh, Chairman and General Director of Can Tho-based Mekong Seafood Company, said that the world financial crisis has had serious direct impacts on tra and basa exports, with most imports markets having closed their doors.
Importers miserable
Russia and the Ukraine rank second and third among Vietnam’s catfish export markets, just after the EU. However, Russia is leading the three as a separate market with $155.6mil worth of catfish imports so far this year, followed by the Ukraine with $104.7mil. Meanwhile, the two markets have stopped importing Vietnamese catfish.
It is because importers now do not have money to pay for imports as banks have tightened credit. And this is not only the problem of Russia or Ukraine, but of the whole world.
EU importers have stopped placing orders as local banks have stopped providing guaranteeing services. Moreover, the Euro has lost its value against the greenback, which means EU importers have to purchase products at higher prices.
It is more difficult to export catfish to the US these days, though Christmas is nearing. A lot of importers have stopped placing orders, some others have cancelled contracts.
The Ministry of Agriculture and Rural Development has set the target of exporting $1.5bil worth of seafood products this year. However, it is believed that the target is fast becoming unfeasible.
Manh said that seafood companies have been facing a heap of difficulties. They still cannot clear the big stocks of fish they purchased before at high prices. Meanwhile, they are finding it very difficult to get bank loans. Meanwhile, farmers are weeping due to expensive fish feed prices.
VNN
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