According to the model, the enterprises either provide food to raise fish or buy the entire output from contracted aqua-culture farmers.

“Combining farming land enables enterprises to secure a sufficient supply of safe materials to turn out clean products. Thus, it is much easier for us to get access to fastidious markets that strictly impose safety standards such as the US or the European Union,” Nguyen Dinh Huan, deputy director of Agifish said.

Recently, the farmers were hit hard by sharp price drops, which resulted in many of them abandoning ponds because of their inability to make any profit.

The average price of 1 kilo of tra fish is VND14,500 (US$0.81) for type 1, VND13,500-14000 ($0.76-0.79$) for type 2, which means for every kilo of fish a farmer loses VND1,000. And with some farmers harvesting up to 250-300 tonnes per 1ha, the total losses may amount to VND250-300 million ($14,000-16,800).

According to a report from the Ministry of Agriculture and Rural Development, the tra fish breeding and processing industry is highly dependent upon the market. The co-operative farming model had been implemented in several places but wasn’t working. With strained relations between breeders and businesses, the breeders’ rights were not protected in all cases, while the enterprises faced shortages of material for processing.

Nguyen Van Vien, owner of 10 ponds breeding tra fish in Tan Loc Island, Thot Not in Can Tho Province had been struggling to sell fish once they were harvested. There were some crops that took him several months to sell until they were eventually sold to a buyer for very low prices.

To improve the volatile situation, Vien agreed to sign a contract with Nam Viet Corporation. In exchange, the company sent staff to provide technical support to ensure his methods were in compliance with standards of clean production.

Doan Toi, General Director of Nam Viet Corporation said: “Besides investment in our own breeding ponds, we are setting tie-up with farmers to raise fish in a large area and to build a production area covering 200ha that will be able to meet 50 per cent of the export demand.”

In An Giang Province, Agifish Company has launched the fish farming union, which has attracted the participation of 29 households. It can provide material to process 60 per cent of the export fish. “Due to this union, our members are making profit although the tra fish market witnesses a wide fluctuation,” said Huan.

However, not all farmers are as lucky as Vien because only a small fraction of them are eligible to join the union, which requires their farming land to be at least 2-3ha. Only six of An Giang’s enterprises have implemented this model, each of them cooperate with 20-30 households, while hundreds of other small-sized farmers are left out.

Thieu Quang Thai, a breeder in Can Tho Province, who farms 1ha of land, said, “It is very hard for a small-sized breeder like me to join that union, if not to say impossible, although I really want to.”

According to Le Chi Binh, Deputy Chairman of An Giang Province’s Aquaculture Association, this model yields higher economic value for enterprises, but the social value is still limited because a large faction of farmers still suffer from price fluctuation.

Thoi An co-operative in Can Tho Province is an exemple that chooses to join hands with Hung Vuong company to raise fish on 30ha on behalf of its 36 small-sized members. Hung Vuong company is responsible for providing food for the fish and then collecting the fish during harvest.

According to the co-operative’s head Nguyen Ngoc Hai, since the beginning of this year the co-operative has provided Hung Vuong company with 11,000 tonnes of fish that meet hygienic standards.

It is like a win-win strategy when the farmers can remain profitable with volatile markets, while the enterprises can control the amount of material processed and enhance the product’s quality.

VietNamNet/VNS