Pangasius businesses and farmers are facing many difficulties due to Covid-19

(vasep.com.vn) Up to now, the production and export activities of pangasius processing enterprises in the Mekong Delta are still facing many difficulties due to complicated developments of the Covid-19 epidemic. Pangasius consumption in many markets recovered and grew well, but many factories are still focusing on fighting the disease. This causes the export value to continue to decrease, farmers have reduced the output of pangasius fingerlings and commercial fish. Both exporters and farmers are facing many difficulties.

 

According to the Directorate of Fisheries (Ministry of Agriculture and Rural Development), by the end of September 2021, the pangasius farming area of ​​the country reached 6,828.3 hectares (equivalent to 100% of the same period in 2020). Harvested area reached 3,086.7 ha (equivalent to 95% compared to the same period in 2020);

However, the output of pangasius harvested during the two months of social distancing decreased by 20% and 44.9% respectively compared to July and August 2020.

This means that the pangasius processing factory currently has a huge shortage of raw materials. And the amount of materials left in the pond, the size is too big because it has not been harvested yet.

Some pangasius processing enterprises have temporarily suspended operations for a few months because they have not met the “3 on-site” regulations (eat on the spot, work on the spot, and stay on the spot). Large pangasius enterprises continue to operate but reduce their capacity. The application of “3 on the spot” Some pangasius processing enterprises have temporarily suspended operations for a few months because they have not yet met the “3 on the spot” regulations (eat on the spot, work on the spot, and stay on the spot). Large pangasius enterprises continue to operate but reduce their capacity. The application of “3 onsite” for a long time, businesses face many obstacles such as: inadequate facilities, workers are more or less affected by anxiety and incur many costs. In the long run, businesses face many obstacles such as: lack of facilities, workers are more or less affected by anxiety and incur many costs.

Due to the implementation of social distancing, processing factories reduce their capacity, reduce the purchase of input materials, mainly using materials from the company’s farming areas or in the linked chain. Some ponds have adapted by reducing fish feeding. The price of commercial grade 1 pangasius in the third quarter of 2021 remained at 21,000 – 22,000 VND/kg, 500 VND/kg lower than before the implementation of social distancing but still increased from 3,000 to 4,500 VND/kg compared with the same period last year. The production of fingerlings also faces many difficulties, many households reduce their capacity by up to 50% due to adverse weather. The price of fingerlings of 30-35 fish/kg ranged from 19,000 to 22,000 VND/kg.

The price of raw material was low, people could not sell pangasius, suffered a huge loss, and decided not to reapply the new crop.

Many questions arise, why is the price of raw pangasius low but the production cost of 1 kg of finished pangasius is high?

The reason is because:

The factory can’t operate, if it is to operate, it must meet the conditions for prevention of covid epidemic. Businesses have to increase costs for workers to eat and stay at the factory. Perform regular covid checks for workers. Moreover, before the fear of being infected with covid, many workers have quit their jobs and businesses have doubled their wages, but still no workers stay at the factory to work.

The end of the year is not only always the season that clearly shows the strong sales and consumption of seafood import markets, but in the complicated situation of covid in Vietnam, sales are no longer growing as stable as before but also makes it difficult for businesses and aquaculture farmers.

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