Global Shrimp Farming A Changing Paradigm

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Global Shrimp Farming A Changing Paradigm?

• Stephen G. Newman Ph.D.
• President
• Aqua-In-Tech Inc.

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Todays Presentation

• Global Production
• Regions and anticipated impacts
• Costs Factors
• Feed, seed and depreciation
• Suggestions for reducing costs
• Paradigm Shift
• Impact of Disease
• Tools and approaches
• Conclusions

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Global Farmed Shrimp Production Through 2006
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Species farmed

• P. monodon
• P. indicus
• P. vannamei
• P. japonicus

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Latin America

• Guatemala 5500 MT
• Honduras 15000 MT
• Mexico 40000 MT
• Panama lt 5000 MT
• Brazil 50000 MT
• Ecuador 30000 MT
• Nicaragua 5000 MT

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The players-Asia

• China 300,000 MT in 2001
• Vietnam 180,000 MT in 2002
• Thailand 180,000 MT in 2002
• Indonesia 100,000 MT in 2002

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SE Asian Production

• CHINA

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China Map
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China

• 2002-300,000 MT of shrimp
• 20 for export
• Large frozen inventories
• Increasing P. vannamei production
• Hainan Island
• Largely intensive
• PL Costs
• Feed Costs-cheap-poor quality local feeds
• Cost of production is under 2.00 per kg

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Hainan

• 500 hatcheries
• 20-30 Broodstock maturation
• 8000 ha of ponds
• 28,000 MT in 2000

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Production in China
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Sales Price
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• VIETNAM

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Vietnam Map
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Vietnam

• 2002-180,000 MT of shrimp
• Primarily P. monodon, some P. vannamei
• 400,000 ha of ponds 3500 km of coastline
• Largely extensive-mom and pop operations
• PL cost 1.00 to 2.50/1000
• Feed Costs 1000/MT
• Cost to produce lb

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• THAILAND

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Thailand Map
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Thailand

• 280,000 MT on 2001
• 150,000 MT in 2002
• Drop regulation and market related
• 3200 km Coastline
• Dramatic Increase in P. vannamei production last
  year 30,000 MT plus 2003
• PL Cost-1.80 to 3.00/1000

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• INDONESIA

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INDONESIA
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INDONESIA

• 54,000 km of Coast Line
• Production around 100,000 MT in 2002
• Several large mega projects struggling
• Recent importation of 1000 pair of adult of P.
  vannamei
• Currently small production of P. vannamei

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Outlook

• Increasing global supply especially for P.
  vannamei
• As long as prices remain high to consumer
  demand will not surge enough to offset abundant
  supply
• Forced increased efficiency
• How?

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Cost Factors

• Seed
• Feed
• Fertilizer
• Fuel
• Direct Labor
• Indirect Costs
• Equipment and facility maintenance
• Depreciation
• Concession Fees
• Taxes

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Operating Cost in Intensive Farm in Americas
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Operating Cost in Semi-intensive Farm in Americas
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Seed Costs

• Very high in Central America Relative to
  elsewhere
• Nicaragua 3.85-6.00/1000
• Ecuador 1.00-1.50/1000
• Asia 1.00-4.00/1000
• Myths about seed
• Super Shrimp
• Mass selection vs family selection
• Environment and management critical to success

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Seed

• Cost Reduction
• Volume production and volume purchasing
• Least cost feed formulations
• Technology
• Water Quality Control
• Feeds-low cost and high quality
• Dont rely on single suppliers
• Make sure cheap seed is not poor quality seed
• High quality seed can be produced for under
  3.00/1000 in volume

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Feed Costs

• Price is protein dependent
• Semi-intensive ponds with good fertilization
  schemes require lower protein feeds
• P. vannamei can subsist on vegetable protein
  sources
• Feed management
• Proper use of trays and feed monitoring protocols

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Fuel Costs

• Volume Purchases
• Coops
• Manage consumption
• Aerate only when required
• Pump only when required

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Direct Labor Costs

• Smaller intensive farms require less personnel
  than larger extensive farms
• Under developed countries have a cost advantage
• Asia-many small Mom and Pop subsistence farms

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Indirect Costs

• Intensive costs more to start up though not
  necessarily more to operate. Higher Depreciation
  though averaged across higher yields
• Regulation-excessive ensures profitability issues

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Conclusions about Cost Management

• Cooperate as a group. Centralize purchasing
• Encourage multiple suppliers. Dont rely on
  single sources.
• Consider alternative approaches such as high
  density smaller ponds

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Biosecurity

• The measures taken to reduce the likelihood of
  serious profit limiting diseases
• Seed certified free of WSSV (independent third
  party certification-not government-institutional
  in the US)
• Limit sales and movement of non-certified seed

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Disease is the 1 impact

• Best management practices mean nothing when all
  the shrimp get sick and die
• Sustained profitability not possible with out
  disease management
• Latin America has some advantages over SE Asia

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Biosecurity

• Minimize or eliminate exposure to vectors
• Water filtration
• Water Reuse
• Isolate Geographically
• Crop Rotation
• SPT (specific pathogen tolerant)
• SPR (specific pathogen resistant)

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Paradigm Shift

• High density culture in smaller ponds
• Greater control over variables
• Easier to see animals continuously
• Easier to deal with treatable problems
• Lower costs of production
• Essential for long term sustainability
• Another Option for semi-intensive
• Niche markets-green shrimp or value added

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Belize Aquaculture Ltd.
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• In 2nd phase
• Producing shrimp in 4 acre ponds
• Successful crops last year
• gt60 survival
• gt20 gram average weight of shrimp

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Panama High Density Small ponds

• 70 meter square
• 23 ponds
• 0.4 ha each not lined
• 14.4 g average weight

• 91 survival
• 18678 lbs/ha
• FCR 1.9
• 94 cents/lb cost
• 1.45 lb/sales price

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NICA Project
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Solutions

• Move to high intensity cultivation systems
• Change species
• Co-culture with larger growing shrimp
• Try to produce the biggest shrimp possible
• Genetics programs geared towards the production
  of fast growing shrimp with high final weights.

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Conclusions

• Changing market and supply picture is going to
  result in a continued surplus of medium sized
  shrimp in the market place
• The ability to consistently produce shrimp for
  under a 1.00 lb will be required
• Intensive culture systems offer a viable
  technology for ensuring this.