Pangasius farmers do not get quite large profit as working with enterprises, but more importantly they live with it and avoid market risks.
Pangasius purchasing prices have been fluctuating since 2011, making farmers’ profit uninsured especially small households who produced pangasius to provide seafood processing companies while being supported with feed and young fish. This was considered a possible future direction of development. Hoàng Long, Tam Nông – based seafood company, used this production system in ĐồngTháp.
Farmer Nguyễn Văn Mách (TânTrong hamlet, Tân Mỹ commune, LấpVò district, Đồng Tháp province) used 6 ha for pangasius farming to provide Hoàng Long to be supported with 3,300 dong/kg. Thus, Mách earned 1,000 dong/kg averagely after various costs. He said that despite low profit it was more steady and stable; besides the company usually checked pangasius for health, delivered feed to his ponds and make sure favorable conditions for farming. More importantly, with this method farmers did not have to get some loans from banks.
One of the first companies behind the introduction of pangasius farming under value chain in ĐồngTháp is Hùng Cá Company. It has developed more than 740 ha of farming land and worked with hundreds of households in five districts Hồng Ngự, Tam Nông, Thanh Bình, Cao Lãnh and Tân Hồng where standards VietGAP, GlobalGAP and ASC are met.
This system started in many areas of TiềnGiang where commercial pangasius farmers connect with producers, processing and exporting companies in a sustainable way. Provincial authorities have granted certificates to farmers and companies that work together in a contract of production and export. This has kept pangasius being stable and prevented producer surplus. Besides, companies that work with farmers will be assured with high quality input material to satisfy importers’ requirement.
Companies will get into trouble once commercial pangasius become rare and farmers terminate the contract unilaterally. On the other hand, in case of producer surplus, companies will put difficulties in farmers’ way with their stringent requirements. Chairman of Vietnamese pangasius Society Dương Nghĩa Quốc said that for sustainable development of pangasius industry, we must improve commercial pangasius quality and firstly young pangasius. Parent fish must satisfy high standards so that survival rate of baby fish will increase. Companies must improve the quality of material zone by imposing high technical requirements into farming so that pangasius will be welcomed in every market.