New trends in pangasius production and export in Dong Thap province

Before 2008, pangasius farmers and processors had no cooperation but now the relation between them has changed. After the severe shortage of raw pangasius in 2008-2009, some farmers left the farming ponds uncultivated due to lack of fund, leading to reduce remarkably farming area and raw fish supply.

The processors seek to cooperate with farmers to ensure raw fish supply for producing. To farmers, low and unstable fish price make them hesitant to invest in farming. It is the reason why pangasius farmers link with processors in fish production chain. The link generates mutual benefits for two sides. The processors can ensure stable raw fish supply as well as fish quality while the farmers’ products are purchased with acceptable price.

Le Van Phuoc, a pangasius farmer in Tan Hau hamlet, Tan Thuan Tay commune, Cao Lanh city said, initially, fish farming was only based on experiences without techniques, so the quality of commercial fish was not high. After cooperating with Vinh Hoan Corp, the fish quality of his farms is improved thanks to the technical supports and disease control guides from the company. “If I do not receive Vinh Hoan Corp’s support, I can not build my farming ponds under GlobalGAP standards” he said.

Recently, there is a similar farming model in Dong Thap province. That is the processors supply fish farmers with input costs (seed, feed, veterinary drug, technical guides) and the farmers will raise fish for them and earn profit at a fixed rate.

Under this model, Hung Ca Co., Ltd in Thanh Binh district, set up a farming area of over 300 hectares. Based on the fish production per harvest, the company will pay fish farmers 25 percent of its profit.

This model can bring a doubled advantage in fish production chain. Fish farmers often lack of fund and market information. When they are supported input cost, techniques, standards of the processors, they won’t worry about the output for their products and profit. With their own farming area, processors can apply international standards in fish farming to create their products’ competitiveness in the domestic and foreign markets. Besides, the processors can build a transparent fish production chain to facilitate traceability for their products.

There is another link model applied by QVD Dong Thap Food Company in 2010. The company has gained achievements from this model. QVD Company invited potential and experienced pangasius farmers to set up a professional aquaculture company under the model of joint fund and profit. Its partners have 16 farming ponds with the area of over 30 hectares. Besides, they have necessary equipments and experiences in farming management. QVD Company has fund, market information and relationship with scientists and has ability to set up the farming area in compliance with strict standards such as GlobalGAP or BAP. Thanks to this link, two sides are targeting to expand the farming area of 100 hectares until the late 2011.

Deputy Director of Dong Thap Department of Industry and Trade, Nhi Van Khai said, the link between the fish farmers and processors is necessary to build a sustainable seafood producing and processing sector. There are many different models depending on the condition of each enterprise. Under this link, seafood processors in Dong Thap province can hold initiative 30 to 50 percent of raw fish for their processing plants. Fostering the link between farmers and processors is considered a foundation for seafood processing sector of Dong Thap province to develop strongly and in the sustainable trend.