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Fish farmers suffer from foreign competition
Fish farmers are struggling with a second price drop since Lao New Year (Pi Mai) because of growing competition from overseas fish farmers operating in Vientiane.
In April the price of fish bought at farms was 19,000 -20,000 kip per kg and last month it fell to 17,000-18,000 kip. This month the price has dropped again to 12,000-13,000 kip per kg, President of the Fish Farm Breeding Association Mr Kenchan Thairavan told Vientiane Times yesterday.
“Farmers who are forced to sell at this low price can't even afford to buy feed for fingerlings because the total cost of production is around 15,300 kip per kg.”
“Foreign fish farmers in Vientiane are selling their fish at lower prices and Lao farmers have no choice but to match them or they will have no customers at all,” he said.
Under similar circumstances in the past, some Vientiane breeders gave up the business because they were no longer profitable and couldn't compete against foreign breeders, said Mr Kenchan.
Farmers are also struggling with the high price of feed because most of them import it from neighbouring countries.
Because the overseas breeders only care about their own welfare, the government should implement a price management system to protect Lao producers, he said.
“The people who really benefit from the current situation are the middlemen who buy from the farmers at lower prices and then sell the fish at the market for 20,000 kip a kg.”
In addition, a lack of cooperation among the different government departments means that the price a fish farmer receives per kg is not stable and can fluctuate from month to month, he added.
Overseas operators started to raise fish along the Nam Ngum River in Xaythany district, Vientiane, several years ago without a licence and have plenty of money to invest in the business, Mr Kenchan said.
“They buy fingerlings and feed from their country at a cheap price so they can sell the fish more cheaply. Lao farmers, on the other hand, spend a lot more and have to sell at a higher price to make a profit.”
To ensure the long-term survival of fish farming in Laos, the government must seek ways to resolve the issue, he insisted.
He believes the price of fish will drop again this month if the authorities don't take immediate action.
“We raise a lot of fish in the rainy season but also face greater risks of flooding and fish stocks dying due to water contamination,” he said.
According to a local farmer, a lot of caged fish have died in previous years due to the poor water quality in July and August.
Vientiane farmers can produce 18 to 20 tonnes of fish per day, which is considered adequate to meet the needs of consumers.
Between 10 and 12 tonnes of fish is consumed per day in the wet season, increasing to between 15 and 16 tonnes a day in the dry season.
vientiane times
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