Tilapia prices rise after local farmers drop out
Tilapia prices rise after local farmers drop out
The prices for farmed tilapia received by fish farmers in recent times have been quite good after a number of Lao breeders closed their operations in recent years after struggling with foreign competition.
The cost of tilapia sold at local fish farms is around 19,000-20,000 kip per kg while in the market tilapia is selling for 24,000 kip, a Vientiane breeder named Mr Nhay told Vientiane Times yesterday.
This prices commanded by tilapia rose slightly over Lao New Year (Pi Mai Lao) and they are expected to remain relatively stable over the coming months, Mr Nhay predicted.
The Lao farmers who are still operating this business are enjoying good conditions due to having sufficient finances and good marketing.
Mr Nhay himself stopped breeding this fish over the last two years after running at a loss for several years.
“I spent about 6-7 billion kip for operating this business but I couldn't manage it well as I struggled with low prices in previous years,” said Mr Nhay.
The capital costs for breeding are on average about 15,000-16,000 kip per kg but the prices he was receiving were only around 13,000-14,000 kip per kg, he explained.
Another major problem for Lao breeders is cut throat competition from Chinese farms along the Nam Ngum and Mekong rivers.
Lao fish farmers have been forced to sell their fish for the same price as the Chinese operators, otherwise they may lose customers.
Prices have since risen again when competition dropped off and will rise again in line with greater fish production.
Representatives of the fish breeding group, especially those farmers in Vientiane, have consistently called for the relevant government sector to help solve the issues that Lao fish farmers are facing but so far there has been no answer, Mr Nhay said.
He added that Lao fish breeders agreed with the government policy to open wide for foreign investment but stressed that they should manage the investments strictly according to Lao regulations.
The group comprises more than 100 member fish breeders in Vientiane and some provinces but the group currently cannot grow its numbers after many farmers were confronted with problems recently.
Many Lao breeders encountered high capital costs as in general most fingerlings and fish food needs to be imported from neighbouring countries.
At the same time farmers are hamstrung by high interest payments after taking out loans from the banks.
The Chinese fish farmers can sell their fish for any price they choose because they have sufficient capital and can buy feed and fingerlings from China cheaply.
Lao and foreign fish breeders are currently able to produce sufficient fish or about 20 tonnes a day for supply to Vientiane markets.
