Seafood Cooperative Links Farmers & Processors

VASEP suggests something like The Thoi An Seafood Cooperative in Thoi An commune, O Mon district, Can Tho city, which works to link pangasius farmers with processors effectively.

To start with the cooperative had only 10 members but now has around 40. Its registered capital was VN$500 million but has risen to VN$5.6 billion. Its initial revenue reached VN$15 billion per year but current revenue is up to VN$300 billion per year.

The cooperative signed the contract to provide raw pangasius for Hung Vuong Corp in Tien Giang province. In 2011, the cooperative will provide 20,000 MT of raw fish for Hung Vuong Corp, Mr Nguyen Ngoc Hai, the Thoi An cooperative’s Chairman said.

Thanks to close links between farmers and processors, the cooperative created unity and high solidarity among members.

The cooperative has worked with pangasius processors and exporters, signed purchasing contracts with them. Through its policy, processors must supply fry, feed and medicines, technical guides and purchase raw fish for farmers.

The cooperative is in charge of fish farming and supplying high quality fish for the processors. The cooperative will earn higher profits if the outlets are stable and input costs are lower than expected. In the past three years, though many single fish farmers suffered losses due to unstable raw fish price, members of the cooperative still earn interest of VN$1,500 - 2,000 from one kilogram of commercial pangasius.

In August and September 2011, the cooperative is estimated to harvest over 3,500 MT of raw pangasius. Thanks to close and long-term links with Hung Vuong Corp, farmers in the cooperative are now not concerned about unstable raw fish price.