Shrimp Aquaculture: Regional Efforts to Reduce Environmental Costs of Shrimp Farming
– what more needs to be done?
Prepared by: Michael Phillips (NACA), Rohana Subasinghe (FAO), Jason Clay (WWF), Ron Zweig (World Bank), Arun Padiyar (NACA) and Jesper
Clausen (NACA)
Presentation outline
• Status and trends• International and regional
frameworks• Environmental issues• Consortium program on
shrimp farming and environment
• What more needs to be done?
• Conclusion
Shrimp aquaculture
• In 2000, global aquaculture production reached 45.71 million metric tonnes, with a value of US$ 56.47 billion.
• Crustaceans represented only 3.6% of total production by weight, but comprised 16.6% of total global aquaculture by value.
• Shrimp farming provided 1.04 million tonnes with a (farm gate) value of US$6.8 billion.
• Annual increase in production, 5-10% throughout the 1990’s, is one of the highest of the aquaculture sector
• “Top five” foreign exchange earner for several Asian countries (Thailand, Vietnam, Bangladesh, Indonesia, India)
• Some consensus that shrimp aquaculture can be less environmentally damaging than shrimp trawling, with potential for improved environmental management
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Production in
Diversity of shrimp farming systems in Asia
• Characterized by diversity– technology/farming systems– economics/investment – social context and benefits– environment context
• Diversity of management solutions required– although market challenges
similar
A socially important sub-sector• Asian shrimp farming is an
important source of employment and income in coastal communities.
• The sector involves well over 2 million people in Asia.
• Small-scale farmers dominate production sector– that pose special challenges for
management• Employment and income
generated in production, supplies, trading and processing
• Social interactions complex, with some conflicts
Several relevant international and regional agreements
• FAO Code of Conduct for Responsible Fisheries (CCRF)
• Code of Conduct (and Practice) adapted for shrimp culture in several Asian countries– Thailand, Bangladesh, Malaysia, Sri Lanka,
Vietnam– NACA and SEAFDEC have developed Asia
regional guidelines based on CCRF• World Trade Organization (WTO)
– SPS Agreement• Convention on Biological Diversity• World Summit on Sustainable
Development• Implementation is the key
Environmental issues and concerns
• Coastal habitat changes and impacts on coastlines– such as replacement of
mangroves and agriculture land• Water quality and effluent
discharge and impacts on surrounding waters and land– nutrients, salinity, organics etc
• Fish meal and oils in shrimp diets
Environmental issues and concerns• Shrimp disease outbreaks, with
significant economic and social impacts
• Trans-boundary movements and spread of exotics and disease– P.monodon to P.vannamei in Asia
• Biodiversity issues– such as collection of wild seed
• Social equity and conflicts• Use of chemicals, residues, food
safety concerns
Consortium program onshrimp farming and the environment
• “To analyze and share experiences on better management of shrimp aquaculture in coastal areas”
• Main partners are the World Bank, NACA, WWF and FAO.• Involved partners from government, private sector and NGOs,
totaling over 100 researchers in 20 countries• Consortium work was initiated in late 1999 and most case
studies completed during 2000/2001, dissemination and communication and implementation support continuing
Consortium program has identified better management practices (BMPs)
• Shrimp farm siting and its impacts on habitats• Shrimp farm design and construction• Water use, effluents and solid waste• Shrimp PL quality and health • Food safety, particularly responsible use of chemicals• Feed and feed management• Shrimp health management• Employment, social impacts and poverty alleviation
• For each of these, “worse” and “better” practices identified.• On farm economic costs and benefits assessed
Some key findings of the Consortium Program• Significant opportunities exist for
reducing environmental costs• Examples already exist of better
practices for reducing environmental impacts
• Several practices combine to produce positive outcomes
• Worse management incurs on-farm and downstream economic and environmental costs
• Better management can provide economic returns, through reduced disease risk, increased production efficiency, profits
• This is a strong economic incentive to adopt most BMPs
• Implementation is the key
A promising examplefrom India
Small and marginal farmers owning 2 ponds on an averageaverage of 1 ha of water spread area/farmer
Improved traditional farming system average stocking density 25,000 seeds/halow investments (< 1000 US$/Ha/crop)production of around 200 Kg/Ha/cropshrimp disease risks
Crop rotation practicespaddy culture, fish culture during rainy season.
BMP adoption30% increase in production80% profits, reduced riskProduction costs reduced by $1.5/kg
What more needs to be done?• Progress has been made in
identification of better management practices that reduce environmental (and social) costs
• There is increasing international consensus on key issues to be addressed
• Implementation essential though to:– minimize environmental and social costs
on industry-wide basis– encourage widespread adoption of better
practice• Implementation of better management
practice will be essential for maintaining market access in international shrimp markets
Shrimp aquaculture is facing significant international challenges
• Increased consumer awareness in importing countries– particularly concerning residues and
food safety• Industry consolidation, vertical
integration, corporate concern about product liability and risk
• Leading to trace-ability and other “sanitary and phyto-sanitary” measures and barriers, involving private business, and govts
• Other international trade issues• Declining real prices to farmers
– at a time of potentially increased investment in food safety assurance
– coffee scenario?
Regional and international agreement on management principles required
• Consensus among key stakeholders on principles of better management would provide guidance for better management of the region’s shrimp sector– governments and business sector
• This will happen internationally, and the Asia region should play an active and leading role in formulation of the principles
• Major principles will address:– shrimp farm siting and its impacts on
habitats– shrimp farm design and construction– water use, effluents and solid waste– shrimp PL quality and health – food safety, particularly responsible use of
chemicals– feed and feed management– shrimp health management– employment, social impacts and poverty
alleviation
Market incentives will play an important role
• Several shrimp certification schemes are being developed– Thailand, Bangladesh, Vietnam
(organics) certification programs– international schemes– private and public– second party, third party– organics and non-organics
• Better management practice principles (BMPs)– provide a basis for a harmonized
approach to certification– may also provide a basis for
investment screens
Certification - some issues and concernsNo Program so far:• Has wide stakeholder support• Has entirely measurable standards, is
objective• Could apply to most producers• Adequately considers social and small-
scale farmer issuesThere is concern about:• Costs of compliance
– especially for small-scale producers, who may be least able to adapt
• Fragmented supply chains• Large numbers of farmers!• Variable principles with varied content
– possible confusion, costs, trade implications
Certification - the way forward• Agree principles, criteria and
measurable standards for 8-10 key issues
• Develop results-oriented approach, not proscriptions
• Solicit broad stakeholder input• Develop guidance on chain of custody• Develop guidance on third party
certification• Adapt standards to local conditions• Encourage building of business plans
around certified market chains• Pay special attention to small-scale
farmers• Asian region should take the lead!
Research opportunities (from Consortium)• International trade and shrimp
aquaculture– WTO, international standards– small-scale farms, costs of
compliance to international standards,
• Social and poverty dimensions ofBMP’s and certification
• Economics of BMP and cost reduction
• Diversification• Coastal wetland restoration• Fish meal reduction in feeds
– net increase in aquatic protein• Paying attention to cost recovery
for research and partnerships
Governance and institutions
• Shrimp aquaculture has highlighted some of the weak institutional arrangements for coastal management
• Some aquaculture problems also cannot be dealt with at the level of the individual farm– eg clustering of large numbers of small farms
• Further development of institutions required– market-oriented institutional arrangements to best support BMP
implementation and small-scale sector participation in international trade
• providing access to necessary technologies, knowledge and infrastructure• providing access to financial resources and equitable access to markets
– farmer associations, or small-scale farmer groups, that support participation of small-scale farmers or vulnerable groups
– relations to integrated coastal area management programs• Further development of policy and legislation required
– focus on building legislation around key BMP principles
Communication and partnerships continued• Stakeholder dialogue needs to be continued
– continued consensus building and problem solving• Along supply chains
– in-country trading networks– producing and importing countries
• Government, industry, civil society– national, regional and international– sectoral and inter-sectoral
• The region needs to play a more active role in international standard setting bodies and agreements– WTO, Codex, OIE etc
• Access of farmers to relevant knowledge and participation in– standard setting, Codes of Conduct and
certification etc
Conclusion – what more needs to be done?• Demand for shrimp aquaculture products
will continue to (slowly) increase• Much is known about reducing
environmental costs, the challenge is implementation
• Fortunately, best practices can also lead to more efficient production, providing an incentive to adoption
• International agreements will need to be adopted and implemented in the region to retain market access
• Markets and international conditions will drive adoption of better practice in cost efficient ways, particularly due to food safety concerns
• Challenge is to adopt existing experiences and support implementation in equitable and socially responsible ways.
• Continued partnerships and communication will be essential
