Shrimp Farming and the Environment - Library

Emerging marketsSoutheast Asia and the Far East have emerged as the fastest-growing markets for all kinds of seafood.Shrimp is one of the major items enjoying good demand in this area. In 1994, seven major economiesin Southeast Asia (Taiwan, Republic of China; Singapore; Hong Kong; Malaysia; South Korea; China;and Thailand) imported more than 100,000 MT of fresh or frozen shrimp. The total consumption inthese countries is estimated to be twice this figure (head-on weight). Domestic consumption inThailand, for example, is more than 50,000 MT annually. More than half of Malaysia’s cultured shrimpis destined for domestic consumption in households and restaurants. Similar scenarios are also seen inSingapore, Indonesia, China, and other countries. In 1996, China alone imported seafood productsworth more than US$1 billion.Overall industry statusTowards the end of 1988 there was a significant price drop for Penaeid shrimp, related mainly to thestate of the Japanese economy. However, prices have strengthened again since then, reflecting strongdemand from the U.S. market, and the outlook for the moment is good. The decline in production inrecent years will also tend to lead to a strengthening in price. Clearly, however, the market for luxuryseafood products will be sensitive to changes in the global economy, and these, coupled with variabilityin supplies, will cause continuing price fluctuations. However, it should be remembered that the globalmarket remains large and generally buoyant, and capture fisheries for shrimp are unlikely to expandsignificantly. In the medium to long term, therefore, prices are expected to average at least at thecurrent levels. As with other agricultural products, however, producers must be able to bear significantshort-term fluctuations.Future outlookJudging from the present investor interest in shrimp farming, together with assumptions about thefuture demand for shrimp, shrimp farming is expected to continue to expand for some years, althoughconstrained to some extent by disease. Eventually, site limitation, markets, and the probable long-termincrease in the cost of fishmeal or fishmeal substitutes will together constrain further growth of theindustry.As with most emerging industries, shrimp farming will become more business-oriented and scientificas time goes on. The profit margins will become slimmer as competition increases, and more attentionwill be paid to marginal improvements in production methods and economies. As the industry matures,it will have to pay more attention to detail and effective management. As this happens, the “fortunehunters” will disappear from the industry, as may some of the less efficient small-scale producers,while more serious operators remain in business. These producers will naturally focus on their longterminvestment and do their utmost to make sure that operations can be maintained over time.Consequently, financial returns will be considered over longer periods, and more attention will be paidto environmental and social issues.Once the current unpredictability of production has lessened, the market and prices should stabilize.While this will reduce the opportunities for massive short-term profits, it will be positive for theindustry as a whole, benefiting the majority of operators and investors. Some market fluctuations areunavoidable, as the shrimp market depends on a number of interrelated factors as well as on unrelatedfactors outside the influence of the industry. However, the long-term outlook is for more stable demandthan in the short term.Summary and conclusionShrimp farming has become a major aquaculture activity and object of investment over the past two tothree decades. Shrimp farming currently accounts for some 30% of total world shrimp production, andthis share is growing. In view of stagnating or declining catches from the wild, and the continuing highdemand for high-quality seafood, shrimp farming is expected to play an even more important role inthe future, despite the recent downturn in the market.9