(Anova) - The “refrain” of Pangasius’s price going up and down in Mekong Delta is now not so new. A major of opinions claim that this unstableness depends on export market. However, the real essence here is because of unstraight business.

The Pangasius’s price in Mekong Delta went down dramatically in June 2008 that drove a mass of famers afflicted of being in debt and cannot operate anymore. The price did go up a little in beginning September because enterprises boosted buying material fish. But soon in the end of September and beginning October, the price went down again.

Miserable follows miserable

Beginning October, Pangasius’s price was sold at 15,000 – 15,500 VND/kg to enterprises. Mr. Nguyen Ngoc Hai, Chairman of The Thoi An Co-operative (O Mon, Can Tho) informed: farmers suffer great loss at this price because the current cost price is now 16,650 VND/kg (including 12 expenses: breed, foodstuff, chemical, bank interest, etc.)
The cost of foodstuff and medicine has tremendously gone up for 3 months (from June to September, 2008). Many fish cellar was inoperative for 2 – 3 month due to loss. There will be at least 50% inoperative household in the next crop, according to Can Tho Ministry of Trade and Commerce. However, this figure will be much higher according to the Can Tho Association of Fisheries.

Mr. Hai also informed that the main reason caused Pangasius’s price to go down was that the oversea export market was narrowed that enterprises had to cut down purchase. Another reason was that a considerable quantity of fish still remained from the previous increasing price.

The price was up to 16,500 -17,000 VND/kg in the middle September when enterprises rushed to buy fish. A mass of farmers hold their fish and waited for the price to go up; therefore suffering a great loss. The price has changed so many times in just two weeks.

Phan Van Khanh, a farmer in O Mon who owns 4 hectares farming Pangasius, was able to afford a car in hot crop. But now the situation is much different: enterprises hardly buy fish and even make payment 45 days late after taking fish.

“Price was pathetic during the crop, but in the ending, enterprise locally boosted it to hold farmer keeping up their work. This increase was a real fake business of enterprises, said Khanh”.

Mr. Bui Huu Tri, President of The Can Tho Association of Fisheries explained: the moment when price increased because enterprises were able to signed a new export contract, so the remain quantity was decreased. They had used up all their material sources; therefore they need to boost the price and seek for new one. This is just a temporary unreal increasing; so when enterprises are not in need anymore, the price will be down again.

Unstable because of unstraght buniness

Mr. Tri informed that in the middle of September when the price was increased, many household had refused to sell fish at 13,000 – 15,000 VND/kg as having signed in the contract with enterprises.

“It was very common that farmers have to break the contract. But we have to sympathize toward them. Farmers have waited and asked enterprises insistently to buy their fish for so long. Enterprises are required to buy fish for farmers at the proper price”, said Mr. Bui Huu Tri.

“On the other hand, when the price was down, every 10 farming ponds showed to enterprises they can only pick up one, for the rest they resented that it was oversized fish and found way to cut down on the price”. It is easy to see that both sides readily break the contract; they create difficulties for each other to earn change; completely have no ideas of a long-term stable relationship.

Mr. Thi analyzed: it was farmers who lack of consciousness that breaks the contract; plus the traditional unstraight business. Meanwhile, enterprises do not respectful and reliable in guarantee their traditional partner’s interests.
In reality the contract requires farmers to sell fish to enterprises otherwise they have to make up double the deposit. However, the contract does not mention anything about slow purchase or late payment of enterprises.

According to Mr. Nguyen Dinh Huan, Vice President of Agifish Company (An Giang): Enterprises and farmers never go in the same path of processing and consuming Pangasius, which causes the unstableness; driving both enterprises and farmers to miserable.

Nhat Truong

Source: Dantri

Translated by Vietfish Community