Historical OverviewFrom modest beginnings more than thirty years ago, cultured shrimp from commercial aquaculture operations now contributes at least 25% to the world's total supply of shrimp. Shrimp farming continues to be one of the fastest growing sectors of the entire aquaculture industry. The 1980's and 1990's have been a period of particularly explosive growth. Over the last decade (1985-1995), the contribution from farm-raised shrimp to the total world supply of shrimp has grown by approximately 400%. The major cultured shrimp producing countries at the present time are Thailand, Ecuador, Indonesia, Philippines and India. Worldwide, there are approximately 50,000 farms that occupy almost 1.2 million hectares of land (approx. 3 million acres). The Eastern hemisphere accounts for 75% of the total production while the Western Hemisphere accounts for 25% of the production. Total revenues generated from the production of farm-raised shrimp worldwide was recently estimated at US$5-6 billion annually. Ecuador has been the leading producer in the Western hemisphere since the technology was developed in the 1950's. By 1977, the entry into shrimp farming in Ecuador was like a gold rush (Hirono, 1983). The 1980's were the boom years for the shrimp farming industry here and by 1995, the value of exported shrimp had reached $668 million. The Ecuadorian shrimp farming industry has certainly had its share of problems. In the early years, the dependency on wild larvae resulted in unpredictability and more recently, the Taura Syndrome, a deadly virus that afflicts shrimp, has taken a severe toll. But many Ecuadorian farmers continue to prosper. Presently, there are approximately 320 hatcheries and more than 130,000 hectares in production. Production Methods |
| Semi-intensive shrimp farming is still the method of choice for most farms in the Western Hemisphere. Farms are usually between 100-500 hectares in size. The majority of commercial farms are stocking between 8-25 animals/square meter and use little or no aeration. A pelleted feed is generally provided and there is strong reliance on fertilization to stimulate phytoplankton blooms. Total growout period is typically 90-120 days and the harvested size of the shrimp is usually less than 20 grams. The yield is normally between 1,000-2,000 kg/hectare. Yields above 2,000 kg/hectare for semi-intensive farming is considered excellent. Farms in tropical climates typically have 2-2.5 crops per year. |  |
| After being hit by two serious virus outbreaks, many of the existing farms were forced to take a real hard look at biosecurity issues. While there are so many measures that can be taken, the most critical is that the farm must be converted to a zero discharge system. The luxury of exchanging water in the ponds was no longer an option. Conversion to a zero discharge system almost always requires investment and usually demands technology upgrades that can bring the farms into the realm of intensive shrimp farming in terms of cost of operation. Farms in the Americas typically have large ponds (8-15 hectares) and these are not ideal for recirculation technology. Re-engineering the ponds to smaller sizes is often not economically feasible. Adding aeration is normally required. In most cases, the effort of farmers to combat White Spot Syndrome Virus (WSSV) with technology, common sense and some ingenuity have been successful. |
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| Approximately 10% of the farms in the world are currently using intensive or super-intensive production strategies. There is a tendency for Asian farms to be smaller in size but more intensive in the methods of production. This is particularly true in Taiwan and Thailand, where the industry is extremely well-developed. While Asia has a greater percentage of farms that are intensive, the West is rapidly advancing new methods of production that definitely have the potential to revolutionize the industry. The use of more sophisticated technology to produce shrimp is expected to increase in popularity in the future. One of the most important reasons for use of recirculating systems is that they can be made biosecure to lower the risk of disease significantly. Another important reason why recirculating shrimp farming technology will increasingly be selected as the system of choice will be the ability to locate the facility away from the coastal regions and potentially near urban markets. |  |
| The system we are developing here at AquaSol, Inc. is designed for tropical regions with a plentiful supply of low salinity water. It utilizes round tank technology and maximizes the activation of bacterial suspensions within the pond environment. The level of production from this type of system is approximately ten times greater than the more traditional semi-intensive system. |
The Market for Farm-raised ShrimpToday's world market for farm-raised shrimp continues to be characterized by strong product demand and all signs point towards the continuing expansion of the shrimp farming industry. Many seafood buyers worldwide recognize that the farm-raised product is superior to the wild product in many instances. This is due to the farmers ability to freeze shrimp on-site within hours of the harvest, locking in the freshness. In light of this, tremendous marketing opportunities exist for premium quality farm-raised shrimp. The three major markets for farm-raised shrimp are the United States, Europe and Japan. However, a number of new and developing markets throughout the world are now demanding higher and higher levels of this fine and easily accessible product. The growing middle class and subsequent opening of the market gates into China are just one example. |
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Farm-raised shrimp have been subjected to increasingly greater pricing pressure over the course of the last couple of years. Similar fates have fallen upon other big aquaculture success stories like farm-raised salmon and catfish. In both cases, this commoditization led to consolidation within the industry as farms were forced to increase efficiencies through economies of scale. A detailed report on this issue as it relates to farm-raised shrimp is provided as a courtesy to our prospective clients who must find ways to maintain profit margins in this increasingly competitive marketplace for farm-raised shrimp. The commoditization of farm-raised shrimp is likely to make success in the industry increasingly more difficult for the less efficient small farmer. Large, vertically integrated players in the global arena are now coming to the forefront of the industry, and with good reason. If conducted on the proper scale and with superior management, shrimp farming has always had the potential to be extremely lucrative. Consolidation and the entrance of multinationals is expected, and in fact already occurring, as these companies seek to diversify into this promising line of business. |
