Shrimp Farming and the Environment - Library

There is little published information about successful tax incentives and other government-institutedincentives with the specific objective of furthering sustainable shrimp farming. However, a broad rangeof more general measures is now a key feature of, for example, the European Common AgriculturalPolicy, where a range of grants, cheap credit, and tax incentives are available to farmers in specialareas who farm in traditional ways or in a manner designed to enhance biodiversity or conserve rare orimportant natural habitat.Examples of tax incentives to promote the development of shrimp farming, and in particular to attractforeign investment in shrimp farming, do exist (Anon. 1988). However, these incentives seem to havebeen directed more towards pushing rapid growth of the industry and of exports, rather thansafeguarding against negative impacts on the environment.Government can manipulate net profits in a variety of ways, and these may be linked to specificconditions or circumstances. Profit can be increased if farmers receive:• Grant aid;• Cheap credit;• Free or subsidized land purchase or rental;• Free or subsidized inputs;• Tax exemptions or holidays;• Production and marketing infrastructure; and• Subsidized research, training, and extension services.These benefits could be linked to location (e.g., the incentives are only available in designated shrimpculture zones), or to design and technology (e.g., grant aid or tax exemption is available for wastetreatment equipment). However, any differential benefits or taxes should be used with great caution,especially if they are likely to give new farmers an advantage over existing farmers.One option is to introduce tax incentives for particular applications and procedures in order to avoidnegative impacts on the environment. For example, tax incentives and exemption from import (orother) duties on equipment needed for proper water treatment may be introduced to ensure that suchtreatment is installed. In some countries, government investment grants are in use to encourageinvestment in environmentally friendly technology or designs.The establishment and operation of a government-financed veterinary service would improve shrimphealth conditions and help prevent the spread of disease. Government-supported training and extensionprograms on proper management practices can help alleviate or prevent both disease and environmentalproblems. Government support for research in sustainable aquaculture and environmental impactstudies would encourage operators to undertake such studies. Financial grants for undertakingappropriate environmental impact assessments would encourage investors to comply with theregulations. In such situations, such EIAs must be required to comply with certain specifications.Some examples of these approaches already exist. Cheap credit is a common tool used in aquaculturedevelopment programs, but to date it has only rarely been linked to siting or design conditions. Land,infrastructure (research, training, water supply), credit, and free seed have been provided for somesmall shrimp farmers in several countries, and recently substantial seawater irrigation systems havebeen built in Thailand. To date, however, these incentives have rarely been comprehensively linked toplans and strategies for sustainable aquaculture development.Market incentivesShrimp farming is an international business: trade, namely export, of a high-quality processed product.Processing is relatively centralized since processing and freezing must be done rapidly while theproduct is very fresh. This requirement has also led to a centralization of harvesting, done by specialistcontractors in major producing countries. Product inspection and certification is already in place, forexample, for antibiotic residues. Furthermore, the product is high-value, purchased in bulk by largeretailing chains, and eaten by increasingly discriminating consumers. These conditions are ideal for theestablishment of environmental quality labeling initiatives.58