Floods force catfish plants to close down

October 21, 2011 | 12:00

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Around 70 per cent of all catfish processing plants in the Mekong Delta have been forced to shut down because of a severe raw material shortage caused by the ongoing floods.

catfish

In Dong Thap and An Giang provinces, which account for 60 per cent of the total production of catfish in the delta, floods have prevented farmers from feeding the fish, while their ponds have also been contaminated, Saigon Tiep Thi newspaper reported.

Duong Ngoc Minh, deputy chairman of the Vietnam Association of Seafood Exporters and Processors, said catfish prices rose by VND5,000 a kg to VND27,500 ($1.3) a kg since early this month, but there isn’t enough supply.

Meanwhile, increased raw material prices have driven many businesses to losses.

He said most businesses had contracted to sell the fish fillet at below $3 a kg, while the current figure is over $3.2 a kg.

Processors with low capacity have to close down for now while bigger ones have had cut production by 50 per cent, he said.

“The shortage will not ease up until next June,” he said.

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