Lobster farmers in some central coastal provinces of Khanh Hoa, Binh Dinh and Phu Yen are complaining about being cheated by Chinese businessmen who are buying their products at cheap prices.

Farmers in Khanh Hoa Province are selling lobsters.

Local farmers in the country's largest lobster raising area are incurring huge losses due to falling prices which they claim are controlled by Chinese businessmen.

At present top quality lobsters weighing at least a kilo cost VND 1.35-1.40 million/kg (USD60-62/kg) in Cam Ranh City, Khanh Hoa Province, which is VND400,000 – 600,000 (USD17.77-26.66) lower than last year's price.

Meanwhile, prices of smaller-sized lobsters at around 800grms are actually more expensive, at VND 1.55 million/kg (USD68.87/kg). However, farmers have few of this size.

Farmers in Cam Binh Commune in Cam Ranh City explained this anomaly that large-sized lobsters were bought at VND1.7-1.8 million a kilo at the beginning of this year while smaller ones were paid just VND 1 million. Therefore, farmers then decided to keep them until they became bigger so as to sell at higher prices at the year-end.

“Now we all have large-sized lobsters but the traders said they prefer smaller ones and would pay higher for the smaller," a farmer, Nguyen Truong Thanh, in Cam Binh Commune, said. "We have no way other than accepting cheaper prices for the larger lobsters."

According to local farmers, lobster prices usually go up at the end of the year due to increasing demand from the Chinese market for New Year Festivals. But this year things have seemed to be different, with prices being slashed to the lowest level seen in many years.

The same situation is being reported in Van Ninh District and Ninh Hoa Town where local people said that this is the first time such problems happened.

"We can never imagine that bigger lobsters are priced less than smaller ones," said farmer Ngo Thi Lam in Van Ninh District, he claimed, "We believe that this is a trick used by Chinese traders to squeeze us."

Farmers in Quy Nhon City in the neighbouring Binh Dinh Province have having to sell all their lobsters at  VND 1.1-1.2 million/kg, which is some VND 300,000-500,000/kg lower than the prices some months ago.

“We have to accept this cheap price despite losses because we don't have other markets for our lobsters," a farmer Tran Huu Chuong in Quy Nhon City said.

According to Nguyen Tri Phuong, vice director of the Phu Yen Province's Department of Agriculture and Rural Development, the province has the largest number of lobster cages in the central coastal region with over 25,000 cages, producing over 650 tonnes a year which are mostly sold to Chinese traders.

“As these deals are done between local farmers and Chinese small traders without official management and control from the government Chinese traders are able to control prices," Phuong said. "And often they will pay high for what the farmers don't have in stock, and vice versa, like what they are doing with various other produces such as cucumbers, sweet potatoes and watermelons."

Chairman of Khanh Hoa Province's Fishery Association, Vo Thien Lang, said that more than 80% of lobsters in 19,000 cages in the area have also been sold to Chinese traders.

"Local farmers are dependent on Chinese traders who seem to always seek ways to squeeze the farmers,” Lang said.

Phuong said that Phu Yen Province's Department of Agriculture and Rural Development recently held a meeting to seek ways to help local farmers but yet to find a solution.

"As local farmers work directly with Chinese traders, there’s nothing we can do," Phuong explained. "We now can only give warnings. I think that the problems can be solved if there are some large local enterprises who are willing to buy the stock and then secure a better price."

Dtinews