Farmed shrimp, which is a major import product into North American and European markets, is typically produced in tropical countries. The bulk of farmed shrimp is produced in Asia. Key issues in shrimp production include the need to manage disease risk, public water quality, and other shared natural resources, including marine feed ingredient sourcing, and ensure continued opportunities for small-scale producers. There are other issues in feed supply chains and post-harvest processing, but they are not the focus of this grouping.
SFP is working with major importers to tackle issues and engage governments and whole producing sectors in the improvements needed to ensure that sustainable aquaculture products are available at scale. Members use various tools, including initiating and tracking aquaculture improvement projects (AIPs) to encourage zonal management. The current geographic focus of the SR is in major producing regions of Indonesia and Thailand, but members continue to explore how best to address improvements in other major producing countries, including China, India, and Vietnam.
Aquaculture Improvement Projects
An Aquaculture Improvement Project (AIP) is a multi-stakeholder effort to address sustainability issues in an aquaculture industry or production area. AIPs take a systemic approach to aquaculture, and aim to address sustainability at multiple levels, including individual farm practices, zonal (regional) resource use, and adequate policy frameworks at the national and provincial scale. The primary aim of an AIP is to reduce the cumulative and combined impacts of aquaculture practices that can arise from poor water usage practices, over-density of farms, incorrect (inappropriate) zoning/siting, unsustainable feed management, and insufficient coordination of disease treatment. Specifically, an AIP should aim to achieve the following:
- National and regional regulatory frameworks based on zonal aquaculture management
- Organized producers using and enforcing best management practices by all
- Resource management systems adequate to protect habitat and water quality
- Robust monitoring and reporting to demonstrate effective mitigation of shared disease risk
- Transparency in marine ingredients used in feed, and ensuring that those ingredients are sourced from responsible fisheries or those actively engaged in improvements.
An AIP should have the following attributes:
● Participation: An AIP should draw upon market forces and include supply chain actors and producer organizations. If producer organizations do not exist, their formation should be an initial goal of the AIP. All participants should publicly commit to supporting the AIP (including financially).
● Needs assessment: The AIP should produce and publish a needs assessment, identifying the scope of the AIP and the main environmental challenges. While FIPs refer to the Marine Stewardship Council (MSC) standard to guide fishery assessment, no similar standard currently exists for aquaculture. SFP therefore recommends that the assessment follows the SFP Framework for Sustainably Managed Aquaculture.
● Workplan: The AIP should develop and publish a plan containing time-bound objectives for addressing key issues identified in the needs assessment.
● Progress reporting: The AIP should publicly report progress on activities and outcomes against the workplan, at least every six months. Regular public reporting increases the credibility of AIPs throughout the supply chain and provides buyers with evidence of genuine progress.
Within Target 75, shrimp are broken into two sectors: large shrimp and small shrimp. The large- shrimp sector includes shrimp larger than 100 shrimp per pound (100-count class size). This distinction in size class recognizes the different market share held by the two commodity types. The large-shrimp sector consists primarily of farmed shrimp and wild warmwater shrimp, but also includes larger coldwater shrimp.
The following focuses only on the farmed-shrimp portion of the large-shrimp sector, which accounts for approximately two-thirds of the large-shrimp sector (SFP, 2017; 2018).
The most recent T75 sector update report for Farmed Shrimp was released in December 2018 and details the state of the sector. According to the report’s findings, in 2017, 448,000 tonnes of large farmed shrimp were classified as improving (i.e., certified to international standards or in an Aquaculture Improvement Project, or AIP), which accounts for 8.82 percent of total farmed shrimp production (SFP, 2018). However, an analysis of certified production and FishSource aquaculture profiles and scores for farmed shrimp show that there are significant sustainability concerns across all major farmed-shrimp production regions. The shrimp sector is at high risk of supply chain disruption in all countries, due to exceeding carrying capacity and the associated disease, environmental, and reputational risk this creates. Therefore, there is a critical need for improvement in management practices across the entire sector, as little has been done to date.
The primary target regions for improvement are those with predominantly export-focused industries that are selling into engaged markets. This includes Ecuador, India, Indonesia, Thailand, and Vietnam. Together, these production regions account for 2.1 million tonnes, representing almost 42 percent of global production (SFP, 2018).
Urgent Supply Chain Engagement Required
Target 75 can only be achieved by expanding improvement efforts to shrimp production in China, which produces 2.2 million tonnes of large farmed shrimp and accounts for almost 45 percent of the sector (SFP, 2018). As such, the SR seeks to engage buyers from China.
Production areas and/or AIPs covered
Several broad efforts are underway to improve the environmental and social aspects of shrimp production and trade, including the Seafood Task Force, Sustainable Shrimp Partnership, and Asian Seafood Improvement Collaborative.
SFP and partners are delivering projects in Thailand and Indonesia (see here) that will be identifiable as AIPs once the basic requirements of participation, publication, and planning have been met.
The SR welcomes additional participation of market-based buyers of farmed shrimp, especially those sourcing from China, India, Indonesia, Thailand, and Vietnam.
Current Supply Chain Roundtable participants include:
Current improvement efforts:
- Thailand – Surat Thani and Chumpon provinces: Seafresh is supporting improvements around health management with local shrimp clubs and cooperatives. At the national level, all members are engaging the government on coordinated disease management.
- Indonesia – Banyuwangi, East Java: Sunnyvale and Thai Union are supporting government and industry efforts to address good practice on farms, as well as effective planning and management of environmental and disease risks at the landscape level. At the national level, all members are supporting the development of good aquaculture planning guidelines (see here) and delivery of carrying-capacity tools that are being developed by Longline Environment, with input from fisheries and environment ministries.
- Seafood Task Force: An industry-driven multi-stakeholder alliance, the Seafood Task Force works to address environmental and social issues in Thailand’s seafood supply chain. Membership includes numerous SFP partners and SR participants.
Objectives of the SR:
- Engage governments and national industries to reduce disease risks and environmental impacts of the shrimp industry.
- Initiate multi-stakeholder aquaculture improvement projects (AIPs) in support of national-level engagement.
- Improve traceability of final products and transparency of inputs, particularly on the sources of fishmeal.
SR-level improvement recommendations:
- Encourage suppliers to formally participate in the Asian Farmed Shrimp SR, to engage national governments to adopt full zonal aquaculture sector management.
- Ask suppliers for transparency on the provinces they are sourcing shrimp from (so that FishSource assessments can be developed for relevant provinces).
- Encourage regulators to adopt zonal approaches to aquaculture management at the national and regional levels.
- Start pre-competitive AIPs in provinces that are significant sourcing locations.
If you would like more information about the Supply Chain Roundtable or wish to support it, please contact SFP.
Asian Farmed Shrimp Update – January to June 2019
This briefing provides an update on progress, activities, and news in the areas of interest to the SR. It also indicates any actions and further support needed. A full summary of past progress can be found here.
1. Improvements in Target 75 Priority Shrimp-Farming Regions
An overview of improvement areas is identified in the 2018 T75 Farmed Shrimp Sector Strategy Report, including those currently not necessarily prioritized by the SR. The prioritized SR improvement areas are national-level engagement in China, India, Indonesia, Thailand, and Vietnam.
Update: Support for government and industry engagement secured from IDH – the Sustainable Trade Initiative, SeaPact, and Walmart Foundation. Shrimp Health Resources Improvement Project (SHRImp Project) in development with active participation of Department of Fisheries, Pollution Control Department, Inve, Fish Vet Group, Seafresh, Thai Union, Chumpon Quality Shrimp Farmers Club, and Tha Thong Plain Shrimp Farmers Cooperative.
Further Support Needed: Engage your Thailand supply chain in improvements and refer them to SFP.
Update: Support for government and industry engagement secured from Walmart Foundation and Walton Family Foundation. Shrimp Industry Improvement and Investment Program (SI3P) being delivered in partnership with Conservation International, IDH – the Sustainable Trade Initiative, and Longline Environment, in collaboration with Shrimp Club of Indonesia, local government departments including Bupati, the processor assocation (AP5I) and various members, Sunnyvale, and Thai Union.
Further Support Needed: Engage your Indonesia supply chain in improvements and refer them to SFP.
2. Support to established AIPs and improvement efforts
Update: Thailand delivery with farmer groups in Surat Thani and Chumpon continues, with more than 50 farmers now accessing disease diagnostic services and starting to use data management tools. A new farmer group in Rayong asked to join the project and will use the tools beginning in July. Local and national DOF offices continue to support the project. The Pollution Control Department is reviewing water quality management tools that are being developed.
Indonesia: Project area defined after comparison of various regencies: Banyuwangi chosen. Staff have been recruited and are actively undertaking stakeholder mapping. Strengthening collaboration with industry, government, and other NGOs.
Further Support Needed: Engage your regional supply chain in the projects in Thailand and Indonesia.
3. Support for mitigation of overarching AIP sustainability issues
Thailand project: App development companies selected and contracts finalized (XpertSea and FAI/Benchmark), diagnostic company (Fish Vet Group) now active in the field testing for diseases with shrimp farmers. DOF has initiated a disease-reporting process, with service provision companies reporting disease problems to a centralized database.
Indonesia: SI3P launched in Boston. Longline has initiated discussions with the Banyuwangi Environment Department on development of a carrying-capacity tool. Limited capacity from the local Fisheries Department in developing epidemiology tools.
Further Support Needed: Learn more of the detail of the tools and work with SFP to highlight the value to the producer industry and regulators of engagement in overarching/zonal improvements.
4. Expansion of the SR
Target 75 can only be achieved by expanding improvement efforts to shrimp production in China, which produces 2.2 million tonnes of large farmed shrimp and accounts for almost 45 percent of the sector (SFP, 2018). As such, the SR seeks to engage buyers from China, but also seeks further support for the projects in Thailand and Indonesia, and to re-activate efforts in India and Vietnam.
Update: Fishin'Co, Lyons Seafoods, and Sunnyvale are now part of the SR and regularly attending meetings.
Face-to-face interaction in Boston included meeting with GAA/BAP for members to determine if they wanted to identify any project work as working toward the BAP Zone management standard.
An in-person private SR meeting took place in Boston during Seafood Expo.
Further Support Needed: Agree on new members. Consider mechanisms of funding. Attend regular calls and meetings, and suggest locations and agenda items.