The Government of Brunei Darussalam

Brunei's Prawn Breeders Hurting Due to Imports

BANDAR SERI BEGAWAN, 25 October 2008, Saturday - With the future of the prawn industry at stake, local operators have voiced out their concerns over some issues faced by their businesses in a meeting with officials from the Fisheries Department held yesterday at the Ministry of Industry and Primary Resources.

Hj Nasrul Hakim Hj Othman of S Kota Sdn Bhd presented his case in the presence of the director of Fisheries, Hjh Hasnah Ibrahim, officers from the department and prawn farm operators who were faced with the same predicament.

He said that his Rostris prawn could not compete with the Vannamei prawn, which was being sold in the local market at a much cheaper price. Thus, he feared that he would have to close down the business if something was not done about it.

When they first started, the department had instructed the prawn farmers to culture Rostris prawn since international data had shown that Rostris prawn was less susceptible to disease compared to the Vannamei prawn. However, with the presence of Vannamei prawns in the market, Hj Nasrul questioned whether such prawns were allowed to be imported into the country.

He also stated that upon exporting their prawns to nations such as Malaysia, Taiwan and the USA, the operators were required to produce a health certificate for the prawns.

He asked why import of prawns into Brunei was not subjected to the same requirements.

Hjh Hasnah answered that at present, the import of any prawns was legal since Brunei followed the characteristics of a free trade nation. She went on to say that the department has no right to confiscate or curb the import of such prawns as there was no law in place that would give them the right to do so. As for the necessity of the operators to produce health certificates when exporting, she said that these were the requirements of the importing country and not for Brunei.

The director also told the operators that before the Fisheries Department could take any action, they would have to confer with the Attorney General's Chambers (AGC) to ensure that it would be in accordance with the law.

"If the Vannamei is still coming in (to Brunei), I am going to fail. I'm very sad to (have learnt) that Vannamei is still coming in legally, so I have no hope now," said one of the prawn farm operators.

In light of this remark, Hjh Hasnah said that the Fisheries Department will be holding discussions with the AGC in introducing regulations which will require importers of fresh seafood to Brunei to procure health certification. She said that this step will be implemented soon.

Another farmer called James also expressed that he has been having difficulty in exporting Rostris prawn to Kota Kinabalu (KK) in Sabah, one of their main buyers. Previously, the processing plants there would not accept the prawns because they did not have the permit for Rostris prawn, he said. But by the time these plants acquired the documents, the culturing of Vannamei prawn had already been legalised in Malaysia. This made it harder for the Bruneian prawn farmers to export their products because, once again, they had to compete with the cheaper price of Vannamei prawn, he added.

"KK is not very keen to take our Rostris (prawn) anymore. The processing plants are offering a price similar to Vannamei, which we cannot do," he said.

"It's killing us. Because of the low price, it's killing us," stressed Leong of Greenville Farm.

Hjh Hasnah said that the problem arose partly because the sultanate was small in relation to the other countries that export prawn and that Brunei had no economies of scale. She added that the department was in the trial stage of culturing Monodon, or giant tiger prawn, which is hoped to help out the operators. She said that the project has shown "encouraging progress" and insyallah, could be implemented in a few month's time.

The operators also brought up the problem of flooding in the farming area which resulted in the loss of prawns. According to Hj Nasrul, the flooding occurs twice a year, in June and December. They seek help from the department since they do not have the capital to prepare for the natural disaster.

Another issue highlighted was the problem with creditors who have delayed payment to the prawn farm operators. This means that they have even less funds to do anything about saving their businesses, said one prawn farmer.

"Our products cannot sell. We are going to fail very soon," he said.

With the addition of prawn feed prices increasing, the local operators are now running against the clock, hoping to find a solution to their predicament.

"We are (already) in trouble. We have to do this to save our business," said Hj Nasrul.

On behalf of the Fisheries Department, Hjh Hasnah said that all the operators' concerns have been noted and the department will hold talks with the AGC and relevant agencies in order to find a solution. She also stated that another session will be held with the operators once discussions with the AGC have taken place.

According to one of the prawn farmers, the Vannamei prawn takes around 100 days to grow to a marketable size, a shorter period than the Rostris. The cost of the feed to produce the Vannamei is also much lower. These factors results in cheaper production costs of such prawns. However, the main disadvantage was still that the Vannamei was susceptible to disease.

- Courtesy of the Brunei Times -


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