Tra paradox: export prices up, domestic prices down

VietNamNet Bridge – Doubts have been raised that seafood export enterprises are joining hands to force tra fish prices down in the domestic market.

The tra fish price has plummeted by 4000-6000 dong per kilo after it reached the highest peak of 28,500-29,000 dong per kilo in May. Especially, the price of oversize fish has dropped by 7000 dong per kilo.
The problem is that while the domestic tra fish price keeps decreasing, the Vietnam Association of Seafood Exporters and Producers VASEP has still reported that the export price keeps increasing.
Export price on the rise
According to VASEP, the average price of the exports to the EU in the first seven months of the year was 2.7 dollars per kilo. The price represents a slight decrease from the higher peak, when the domestic price climbed to 29,000 dong per kilo, but remains firmly high.
To date, Vietnam has exported 320,000 tons of tra fish, worth 829 million dollars. VASEP believes that the export revenue increased thanks to the export price increases.
As for South Korean, Japanese and Swiss markets, though the domestic price has decreased, the export prices keep stable. Products have been exported to South Korea at four dollars per kilo, to Japan 4.05 dollars. Especially, the exports to Switzerland have the highest prices at 4.52 dollars per kilo.
The US market, the biggest export market out of the 131 markets for Vietnam, has imported 39,900 tons of tra fish, worth 135 million dollars.
In an effort to ensure sufficient supplies for export and profits for export companies, VASEP has set up the floor export prices at 3.3 dollars per kilo for white-meat fish, and 2.3 dollars for red meat fish. The floor prices will be applied for the last six months of 2011.
Exporters join hands to force domestic prices down?
Tra farmers in Dong Thap and Can Tho have doubts that seafood export companies are joining hands to force the domestic prices down. Nguyen Van Hao, a farmer in Thot Not district in Can Tho said that the floor price (the minimum price at which enterprises buy fish from farmers) for white-meat tra fish set by VASEP is 26,000 dong per kilo, but export companies only pay 24,000 dong per kilo to farmers.
Nguyen Van Kich, General Director of Hau Giang-based Cafatex, has also posed a question that if there is the collusion among export enterprises to force the domestic prices down, thus causing losses to farmers.
Kich has requested the Competition Administration Department (CAD) under the Ministry of Industry and Trade and the Ministry of Agriculture and Rural Development, to take investigations to find out why the tra fish price has been decreasing so dramatically.
Deputy Director of a seafood processing and export company in My Tho Industrial Zone in Tieng Giang province, has confirmed that the tra fish prices have been decreasing continuously in the last several months due to the oversupply. Especially, red meat fish have been left unsold with the stocks reaching 30,000 tons. Farmers in Mekong Delta now find it very difficult to sell tra fish, even though they accept the low prices.
However, Vu Van Tam, Deputy Minister of Agriculture and Rural Development has denied the information about the big inventory volumes. He said that only 5000 tons of oversize tra fish have been left, mostly in Dong Thap, Can Tho and An Giang.

http://english.vietnamnet.vn/en/business/11315/tra-paradox–export-prices-up–domestic-prices-down.html