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Accessing better markets–improving competitiveness of small-scale shrimpfarmers: A Case study of ThailandDhirendra P. ThakurAquatic Resources Management DivisionAsian Institute of Technology, Bangkok, ThailandAbstractThe technological advances of shrimp farming systems have not only contributed to a rapid expansion of Asianshrimp culture, but have also created greater opportunities for foreign exchange earnings. Nevertheless, marineShrimp farming is the most debated aquaculture business in Asia primarily due to the economic reasons andassociated environmental risks. In principle, shrimp farming industry in Asia has often been promoted for thepossibility of increasing rural employment and generating foreign exchange. However, there are indications ofshrift from shrimp farming being a small-family business to corporate dominated business.Thailand is the leading shrimp exporter with annual foreign exchange earning of over two billion US dollar. Thoughshrimp farming development in Thailand has generated substantial economic benefits it has been accompanied byrising concerns over environmental and social impacts of development. Recent development in the world shrimptrade to go for certified product under the chain of custody concept added further to the social concerns, as it hasnegative consequences for the resources poor small-scale shrimp farmers, who do not have capacity to adapt tothe new standards. Apparently, the phenomenal growth exhibited by small-scale shrimp farms in the past decadewas achieved with minimal policy and institutional support. In the present time small-scale farmers cannot earn agood price because they have a limited market for their products and they do not have enough knowledge andcapacity to adapt to the new standards to get access to the niche market.This paper presents an overview of shrimp farming development in Thailand and discusses the issues andchallenges being faced by the small-scale shrimp farmers. The paper tries to give insight on growth potential ofThai shrimp sector and capacity building needs to improve competitiveness of small-scale shrimp farmers tosustain their business. First, it provides brief details of the shrimp industry in Thailand; then examines the driversof the development, associated issues and policy implications. With the purpose to assist small-scale shrimpfarmers to improve product compliance with the EU standards the Asian Institute of Technology (AIT) and theNetwork of Aquaculture Centres in Asia-Pacific (NACA) conducted a project titled “Capacity building of small-scaleshrimp farmers on adaptation of best management practices (BMPs) to promote Thai shrimp export to the EU”.This paper summarizes the lesson learned from the project and put forward vision for improving competitivenessof small-scale shrimp farmers. It is suggested that if shrimp aquaculture has to be seen as a sector to enhance thesocioeconomic condition of the rural communities it would be required for the government to regulate growth of theindustry keeping pro-poor policy in mind.IntroductionThe current worldwide growth rate of the aquaculture business (8.9–9.1% per year since the 1970s) is driven bythe developing countries (Gutierrez-Wing and Malone, 2006; Subasinghe, 2005). Asia has consistently contributedabout 90% to the total world shrimp supply. Shrimps are the highest value seafood in Thailand and have becomeimportant both in terms of generating foreign exchange earnings from exports and creating employmentopportunities in the domestic economy. Since 1991, Thailand has been the world's leading producer and exporterof marine shrimp, exporting up to 90% of its production (Huitric et al. 2002). However, although the production and63