Fish farmers lose out as prices tumble
Fish farmers lose out as prices tumble
Fish farmers keeping cages of tilapia in Vientiane have seen their profits dwindle as the sale price of fish sinks to its lowest level in years amid increasing competion from foreign fish farmers.
The growing presence of Chinese fish farmers on the Nam Ngum River has led many Lao fish breeders to give up the business, as the Chinese traders have more funds to finance their operations.
Fish are now selling at the farms for just 11,000-12,000 kip per kg but the cost of raising the fish is about 15,000 per kg, Xaythany district model farmer Ms Khankeo Pravongviengkham told Vientiane Times recently.
This year, the price of fish is down about 1,000 kip per kg compared to the same time last year, she added.
In addition to the increasing number of Chinese fish farmers, the cost of fingerlings and fish feed has risen, she said.
The few Lao-owned fish farms still operating this business have strong financial backing and sufficient funds to tide them over.
Lao fish farmers suffer from a number of disadvantages compared to their foreign competitors.
They cannot compete with foreign breeders because they have to use their own savings as investment capital, while the Chinese can borrow money from banks. They are also poorly informed about efficient fish farming methods and marketing techniques.
Most Lao fish farmers have to import fingerlings and fish feed from neighbouring countries, which adds to the cost of their operations.
Initially, the fish farm group in Vientiane comprised more than 200 members but there are now just 50 farmers in the group.
Ms Khankeo said Lao fish farmers cannot compete with the Chinese because they sell the fish at lower prices and so attract far more customers. Naturally, most Lao consumers will buy from the farm that is offering the lowest price.
“Sometimes we have to sell our stock at a loss when the fish are fully grown,” she said.
Ms Khankeo suggested the government should set a fixed price for all farms, whether Lao or foreign-owned.
She proposed that the lowest price should be set at 15,000 kip per kg and the highest at 18,000 kip, but realised this would not be possible because of market forces and the nature of competition.
It is government policy to encourage foreign investment in economic development in Laos, so business operators should learn how to make their products competitive in the marketplace, she added.
vientiane times
