Vitarich Launches Pangasius Catfish Contract Farming

Poultry firm Vitarich Corp. has opened a growout opportunity for pangasius farming as pangasius is projected to hit a $ 2-billion export value in 2010 as fish has become a food alternative for meat worldwide.

With a rate of return of 10 to 20 percent over a short period of time of six months, Vitarich is optimistic of a lucrative venture in pangasius, a type of catfish. The interest in pangasius has surged as Vietnam earned $ 1 billion from pangasius’ fish fillet in 2007.

“There is increased worldwide demand for pangasius in European countries, the US, Australia and Russia. Other countries are still being developed, (and) export prices are high,” said Vitarich in a statement.

China is one of the big markets for the fish.

While the country can serve other markets as it is in the position to promote better branding compared to other countries that have deteriorating image, Vitarich officials said pangasius also has expanding local market in high-end restaurants, hotels, and fast food chains.

Thailand has similarly started expanding its pangasius fish farming in order to meet export markets in the United States. However, existing supply is not out to satisfy the big market. Malaysian catfish producers prefer to sell their catfish to the local market rather than export the products.

Vitarich has set up three schemes with pangasius farming entrepreneurs — contracts for growing, contract to buy, and contract for commercial growing.

“Investors start-up capital varies depending on whether they have the facility or not. On operation side the smallest is 5,000 fingerlings which can cost him around P400,000,” said Vitarich.

A technical assistance will be extended by Vitarich to growers. Technology transfer also involves details of distribution of fish products including fillet, live fish, frozen fish (chilled, gutted, headless), and other by-products such as trimmings, skin, and head and belly.

Under the contract growing agreement, Vitarich, which supplies fingerlings and feeds to a contract-grower, has a standard growers fee of P10 per head. Ownership of fish and feeds remains with Vitarich, but operating expenses are incurred by the grower.

While the grower pays an equity of P15 per fingerlings, he has no right to sell the fish or feeds as he will receive payment for the fish after harvest.

For the contract to buy (CTB), fingerlings and feeds will be paid by the CTB partner, and the CTB partner also owns fish and feeds. Vitarich buys at P50 per kilo the fish from the CTB partner who also has an equity of P5 per fingerlings.

“Payment is on cash-offsetting transaction. Operating expenses to be shouldered by CTB partner,” according to the contract terms.

Read more details here

For more information, contact:

Vitarich Corporation
MacArthur Highway, Abangan Sur,
Marilao, Bulacan

Trunklines connecting all departments

PLDT : (02) 843-3033
Digitel: (044) 711-2829
Globe : 0917-516-8686 or 0917-) 516-3509
Fax : (02) 843-3033 local 400
Web: www.vitarich.com

See also: Pangasius Catfish, New Business Opportunities

source: Melody M. Aguiba, www.mb.com.ph