Shrimp farming at the cross roads

The growth of the shrimp industry in many developing countries has generated considerable international debate about the environmental and social costs and benefits of previous practices. Problems have been linked to poor management practices, planning and governance. As a result, low impact management practices, market-based initiatives and trade agreements have emerged to promote more responsible shrimp aquaculture.

New low-impact production systems are emerging to minimise impacts on the environment, which have often been linked to social problems. It is important to see how these new initiatives affect poor small-scale farmers, who are the basis of the industry and the focus of development aid. This will ensure that future policies consider the impacts on these groups more effectively. Research from the UK's Department for International Development investigates the development of sustainability of shrimp aquaculture and how different investment and market-based approaches promote more socially and environmentally responsible shrimp farming.

Increasing consumer awareness, pressure from non-governmental organisations to ensure health and safety standards, and strict regulations at national and trading level are leading to new shrimp farming processes. Initiatives are developing along the whole supply chain, from producer to consumer, to promote more responsible shrimp farming. These include:

• Building on the Corporate Social Responsibility (CSR) agenda to raise consumer awareness of the development and environmental issues related to shrimp production and encourage responsible purchasing amongst major buyers.
• Extending the existing pressure on processors to meet Sanitary and Phytosanitary requirements and emerging quality assurance systems to address broader issues of social and environmental responsibility.
• Working directly with farmers to develop low impact practices
• Developing cooperative structures to enable farmers to respond more effectively to market demand, diseases, environmental problems and new planning initiatives.

Concerns remain about whether these initiatives can benefit poor, small-scale producers. For example, the CSR agenda has the potential to promote fair trade and organic farming. These are niche markets, however, and will only benefit a small number of shrimp farmers. Furthermore, wealthy consumers often determine these standards, and meeting them may be expensive. Defining the purchase criteria of major buyers can put pressure on a larger proportion of the industry to meet basic social and environmental standards, but small farmers are often unable to meet these standards without large investments. Working with farmers to develop low impact production and alternate systems will require re-evaluation of current practices and their integration into the coastal environment.

Bangladesh, Thailand, Vietnam and China have developed national labelling schemes in response to international pressures. These include official standards, such as the Food and Agricultural Organization Code of Conduct for Responsible Fisheries, and markets that are increasingly demanding quality and safety standards. These schemes consider national interests, values and conditions, and standards can be set at levels that do not disadvantage small-scale producers. Nevertheless, these schemes may hinder farmers with costly, time-consuming certification processes.

While market-led mechanisms have some influence on social and environmental problems, they do not address complex local issues of resource access and management. They are also too weak to prevent the widespread corruption, lawlessness and misuse of resources. In countries with dispersed small-scale production, there is a need to work locally with farmers to build collective structures of representation and cooperation. It is necessary to increase technical and marketing abilities of small-scale farmers.

While improving quality assurance standards is important, policy makers should also:

• include coastal farming in integrated coastal resource planning and management, to maximise economic and social benefits
• improve poor farmers access to resources
• develop the resources of existing institutions to provide technical support, manage coastal resources and eliminate corruption
• strengthen monitoring, evaluation and law enforcement in shrimp farming areas.

Source(s):
Coastal Aquaculture and Environment: Strategies for Sustainability, DFID Project R6011
‘Investment mechanisms for socially and environmentally responsible shrimp culture’, synthesis report by Nautilus Consultants Ltd in association with IIED, 2003
This publication and supporting materials are outputs from work funded by the UK Department for International Development (DFID) for the benefit of developing countries. The views expressed are not necessarily those of DFID.

Funded by: UK Department for International Development

id21 Research Highlight: 1 February 2005

Further Information:
Aquaculture and Fish Genetics Research Programme (AFGRP)
Institute of Aquaculture
University of Stirling
Stirling
FK9 4LA
UK

Tel: +44-(0)1786-467900
Fax: +44-(0)1786-472133
Contact the contributor: afgrp@stir.ac.uk

Aquaculture and Fish Genetics Research Programme, Department for International Development, UK

Institute of Aquaculture, University of Stirling, UK

Other related links:
'Keys to success in shrimp health management'

'Tropical fisheries conflicts: the search for a better understanding'

'Small fry? Shrimp production and child labour in Bangladesh'

WorldFish Center

Fourth Fisheries Project in Bangladesh