Shrimp Farming and the Environment - Library

Discussion and conclusionsShrimp aquaculture is an inherently risky activity, subject not only to the unpredictability of climate,input prices, and product value, but also to the possibility—indeed the likelihood—of disease andproduction failure. The extent and incidence of disease depends on both the management of individualfarms and the management of the industry as a whole. Minimizing disease risk is therefore only partlyin the hands of the individual operator. Government can play a major role in reducing some of theserisks.In general, financial risks increase with increasing intensity, and decrease with improved siting, design,technology, husbandry, and management. The relationship between intensity, returns, risk, access tocredit, and skills requirements should be given careful consideration in the planning and design of anyshrimp culture project or program.In the case of individual projects or aquaculture development programs, the most important safeguardagainst financial risk is a proper and well-documented feasibility study, supported by thorough andreliable market studies, raw material supply studies, and similar analyses. It should also address indetail the probability and costs of disease. The objective of the feasibility study is to reduce financialrisk as much as possible, in order to safeguard the sustainability of the project (Behrens & Hawranek1991). Appropriate credit facilities must also be available to the project, and cost recovery mechanismsshould be considered in the project’s financial plan.In order to reduce financial risk, realistic—even generous—safety margins should be included in thecalculation of the project’s main input, operational, and output factors. No operation will performaccording to plan and, most often, it is better to err on the side of safety. In addition, sensitivitycalculations must be performed, using less favorable conditions than the “base case.” Often, severalnegative factors will occur at the same time, and the sensitivity analysis should include calculationsthat reduce favorable inputs simultaneously, rather than one by one.Finally, an analysis of possible project alternatives is important in the design phase of a shrimp farminginvestment. One option to consider is crop diversification, in order to reduce the financial riskassociated with shrimp disease. For instance, in areas where diseases occur mainly in the rainy season,a polyculture farm with tilapia, crabs, and sea bass in the rainy season, combined with shrimp culture inthe dry season, might be an option. Alternatively, farmer cooperatives or government agencies couldkeep broodstock of tilapia, milkfish, sea bass, and other fish to be distributed once a shrimp disease oranother natural calamity hits an area, in order to safeguard farmers’ incomes.54