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Tough supply situation means Vietnam processors are looking to work with farmers.

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Vietnamese processors are increasing cooperation with local farmers to ensure raw fish quality and supply.

Before 2008, pangasius farmers and processors had no cooperation but now the relation between them has changed. After the severe shortage of raw pangasius in 2008-2009, some farmers left the farming ponds uncultivated due to lack of fund, leading to reduce remarkably farming area and raw fish supply, reports Pangasius Vietnam.

“Initially, fish farming was only based on experiences without techniques, so the quality of commercial fish was not high,” said Le Van Phuoc, a pangasius farmer in Tan Hau hamlet, Cao Lanh city.

After cooperating with Vinh Hoan Corp, the fish quality of his farms is improved thanks to the technical supports and disease control guides from the company.

“If I do not receive Vinh Hoan Corp’s support, I cannot build my farming ponds under GlobalGAP standards,” he said.

Recently, there is a similar farming model in Dong Thap province. That is the processors supply fish farmers with input costs — seed, feed, veterinary drug, technical guides — and the farmers will raise fish for them and earn profit at a fixed rate.

Under this model, Hung Ca Co., Ltd in Thanh Binh district, set up a farming area of over 300 hectares.

Based on the fish production per harvest, the company will pay fish farmers 25 percent of its profit.

This model can bring a double advantage in fish production chain. Fish farmers often lack funding and market information. When they are supported with input costs, techniques, standards of the processors, they won’t worry about the output for their products and profit.

With their own farming area, processors can apply international standards in fish farming to create their products’ competitiveness in the domestic and foreign markets.

Besides, the processors can build a transparent fish production chain to facilitate traceability for their products.

There is another link model applied by QVD Dong Thap Food Company in 2010. The company has gained achievements from this model. QVD Company invited potential and experienced pangasius farmers to set up a professional aquaculture company under the model of joint fund and profit.

Its partners have 16 farming ponds with the area of over 30 hectares. Besides, they have necessary equipments and experiences in farming management.

QVD Company has funding, market information and relationship with scientists and has ability to set up the farming area in compliance with strict standards such as GlobalGAP or BAP.