Create link among small pangasius farmers to survive

Recently, Vietnam Fisheries Society (VINAFIS) cooperated with WWF Vietnam to organize the conference titled "Enhancing the awareness on sustainable pangasius production in Mekong Delta". Most participants to the conference said that small pangasius farmers need to cooperate to keep business and develop sustainably.

Farmers used to grow fish and provide to processors to process and export without closed link between them. This leads to instability of fish supply and price. Now, in the industry, many processors started setting up their own fish farms to make sure its more stable supply of raw fish, pushing small-scale fish farmers out of the playground.

In Dong Thap – the main pangasius producer in the country with 1,939 hectares, fish farms are owned by 44 local processors accounted for 66 percent. Farmers having supply contract with processors own 11 percent, and other 23 percent belongs to individual farmers. After over a year of fluctuant fish selling prices, most of individual farmers got business losses and now they have not enough capital to keep their farming.

According to Dong Thap's Seafood Association, in the coming time, local processing companies tend to expanding their fish farming areas in order to complete a close production chain from pond to table. Besides pangasius products, these companies also have a plan to produce fishmeal, collagen from by-products of pangasius to get the higher profit. Whereas, there are more farmers leaving their ponds empty in the province.

In 2013, the province totaled 1,296 hectares of pangasius production; in which, 9.45 hectares was shifted to be stocked with other aquatic species. Empty ponds were 85.15 hectares. There were 44.82 hectares owned by farmers having supply contract with processors and 3.85 hectares fish farms hired by processing companies. 

According to Tran Anh Dung, Head of An Giang Sub-Department of Fisheres, over the recent years, there was a sharp drop in superficies for pangasius production owned by farmers. Many of them were out of business due to tough economy. Currently, An Giang province has 820 – 830 hectares for pangasius farming; 600 hectares of which are run by 24 companies, representing more than 70 percent. Pangasius sector is the playground for large-scale farmers with huge financial performance.

In Tien Giang province, the tendency is also clear. It reports 130 hectares for pangasius production while companies' fish farms are expanding rapidly. Currently, there are 56.3 hectares of fish farm owned by companies with processing plants, accounted for 62.9 percent of provincial superficies. Individual farmers have 27.7 hectares (31 percent) and corporatives have 5.5 hectares (6.1 percent).

More difficulties for small-scale farmers

In such situation, individual farmers are facing more difficulties in the coming time to find buyers for their farmed fish output and make a price deal with local processors and exporters.

A fish farmer in An Giang province shared that superficies of pangasius cultivation would be decreasing. Local farmers are always in financial trouble partly because of late payment from processors.

"The contract between processors and farmers is vague. Some processors don't pay attention to supply contract with farmers at the beginning of the farming season, they just want to buy fish directly from certain sources at the harvesting time," Mr. Dung analyzed.

Currently, individual farmers occupy about 25 percent of total superficies for pangasius cultivation; in which, farmers with healthy financial situation account for 10 percent while the others left their ponds empty or turned to other aquatic species.

The policy of tightening credits for pangasius farmers also caused many difficulties for small-scale farmers in mobilizing financial sources to keep production.

In addition, many standards and sustainable certifications for farmed pangasius have been created to serve the demand for sustainable fish products from different markets on the world. However, small farmers lack money to pursue certification programs. Money for building good system of waste water and sedimentation treatment is one of main obstacles of these people, who can not do much profit with the current fish price.

How to survive

To help individual pangasius farmers keep their business and develop sustainably, it is necessary to create close link among them; for instance, a corporative to produce and provide huge pangasius supply will help them to sell fish at better price.

Currently, Dong Thap province is reorganizing the provincial pangasius sector, including 3 pilot corporatives gathering small pangasius farmers in Chau Thanh district to sign supply contract with processing companies. This production model enables farmers to buy feed, fish fingerlings with more reasonable price and comply with quality and food safety standards. Moreover, the cooperation will help them reach better price deal with processors as well as to access to bank loans, said Thai An Lai, Vice President of Dong Thap Seafood Association.

Cooperation among small farmers to apply for ASC certification is considered as a good way to develop. A project on establishing a sustainable pangasius supply chain in Vietnam (SUPA) is currently running in line in Vietnam. Under this project, foreign importers will assist small-scale pangasius farmers with 50 percent of ASC certification fees. It's doable and achievable, highlighted Ngo Tien Chuong, coordinator with WWF in Vietnam.