PART II MAIN PAPERS (Contd.)

WORLD SHRIMP MARKET SITUATION AND
OUTLOOK *

Fatima Ferdouse
INFOFISH, Kuala Lumpur, Malaysia

ABSTRACT

The world shrimp production almost doubled from 1.17 million MT in 1970 to 2.186 million MT in 1987. This increase is due primarily to increased aquaculture production which in 1986 already accounted for 20% of total shrimp production, and by 1987 and 1988 for 25% and 27%, of which 70% consist of tropical penaeids. Six Asian producers, China, Taiwan, Indonesia, Thailand, the Philippines and India accounted for 75% of this production.

While three fourth of world shrimp landings originated from developing countries, 70 to 75% of world consumption takes place in the developed world led by Japan followed by USA and then Europe. Japanese imports reached 245,892 MT in 1987. Indonesia replaced Taiwan as the Japanese major shrimp supplier in 1989 closely followed by China and India. Taiwanese exports in the meantime dropped by 58% as a result of continuous failures.

A large inventory, slow shrimp sales due to the Emperor's sick ness and subsequent death followed by the imposition of a 3% consumption tax in April 1989, Japanese shrimp market price dropped to a record low of US$ 7.50/kg in May 1989.

The US shrimp market continues to be strong registering a record 468.5 million lbs in 1987. In 1987 China became the third largest supplier to the US market breaking the traditional hold of the Latin American suppliers. The European shrimp market is not as active, with a per capita consumption of only 0.5 kg as against 3.28 kg and 1.3 kg for Japan and US respectively. The traditional preference for coldwater species has also hampered the development of the European market for the tropical penaeids. However during the last 2 years, imports have increased in all European countries.

Over all the “shrimp fever” appears to be over and the industry is now thinking more about the total world demand and supply situation.

1. INTRODUCTION

According to FAO estimates, world shrimp landings totalled 2.18 million MT in 1987, registering an almost 10% increase per year over the 1970 landings of 1.17 million MT. Landings in 1986 were 2.14 million MT, of which some 624,800 MT or 30% were traded on the world market. (Table 1)

I regret not being able to furnish 1988 production figures in detail as these are not yet available. Although some estimates point to a total world shrimp supply of 2.2 million MT for 1988, this is doubtful looking at cultured shrimp production figures for the year.

Now coming back to the production situation, various factors can be identified for the more than twofold increase in production during the period 1970–1987. These include increased fishing efforts, discovery of new production areas especially for cold water species and the Argentine red shrimp (Pleoticus muelleri), improved resource management following incidences of overfishing in many producing countries and most important of all-aquaculture.

* Original in English

The annual growth rate of the capture fisheries in the 70s showed a 4.4% increase. Between 1979–1987, this rate dropped to 2.9% before levelling off. The production of cultured shrimps, on the other hand, has been increas- ing at a moderate rate since 1983, accounting for 20% of total world production in 1986. Some 70% of this cultured production comprised tropical shrimps, Penaeus spp while the freshwater species, Macrobrachium rosenbergii, contributed some 7%. This growth rate accelerat ed to 25% and 27% in 1987 and 1988, respectively.

According to latest available information, 1988 aquaculture production is estimated at 560,000 MT, with six Asian producers, i.e. China, Taiwan, Indonesia, Thailand, the Philippines and India accounting for 75% of this production. (Table 3)

Over the years, China has been the top cultured shrimp producer, followed by Taiwan, Indonesia and Ecuador. This scenario changed slightly in 1988 with Taiwan's first major crop failure which led to an almost 80% drop in production of black tiger shrimps. That year, Thailand increased her cultured shrimp production from 35,000 MT in 1987 to 70,000 MT and Indonesia from 55,000 MT to 70,000 MT.

China, however, continued to be the major shrimp producing country followed by India, which was the leading producer until the late 70s, and USA. The boom in the culture of P. orientalis or Taisho shrimps was largely responsible for China's top position.

US catch dropped in 1983 due to a decrease in its coldwater shrimp landings. Tropical shrimp landings totalled 207.3 million lbs in 1986 but dropped to 178.9 million lbs in 1987 and 153.2 million lbs in 1988. The predominant species is brown shrimps. Ninety percent of US Penaeid shrimps comes from the Gulf of Mexico area. (Table 4)

However, this year's landings (January-June) in the USA have improved to 63.2 million pounds which is slightly below the average landings of 68.2 million pounds but higher than last year's volume of 60.6 million lbs.

Let's now take a look at the European landings situation which should be our target market for surplus shrimp supply. Landings consisted of Pandalus borealis and Crangon crangon, which are mostly produced by northern European countries. Nor way, Iceland, Greenland and Faroe Islands are the major suppliers of P. borealis. Canada and USSR also produce this spe cies. European consumers have a strong preference for both these coldwater species.

Coldwater shrimp landings continued to decline through 1986 and 1987 due to drastically reduced landings by Norway. Preliminary figures put Norwegian shrimp landings at 41,000 MT compared to 57,743 MT in 1986 and 91,100 MT in 1985. (Table 5) As a result, prices doubled and importers began looking for alternative sources of supply.

2. MARKETS

In international trade, shrimps make up almost 17% of total fishery products. Preference is for fresh and frozen products only which increased from 332,000 MT in 1976 to 600,000 MT in 1986, a hefty 80% increase over the ten-year period. If cooked and peeled, and canned products were to be included, the share would be even higher. Unfortunately, detailed statistics on these two categories are not available.

While almost three-quarters of world shrimp landings originate from developing countries, 70–75% of world consumption takes place in the developed world. Per capita consumption of shrimps is highest in Japan at 3.28 kg, followed by USA (1.3 kg) and Europe i.e. mostly EEC countries (0.5 kg). Price appears to be the main determinant of demand in Japan while personal disposable income seems to be the case in the USA.

The international shrimp market expanded thoughout 1986, 1987 and 1988. During the past few years, Japan, USA and Europe were the major markets and continue to remain so until today. Another growing market which cannot be ignored is Southeast Asia.

Records were set in 1986, 1987 as well as in 1988 for US and Japanese consumption. European trade has also expanded, despite the setbacks in coldwater shrimp landings. The cultured shrimp was the major gainer in the overall scenario. Farmed shrimps from countries such as Taiwan, China, Thailand and Ecuador flood ed both the Japanese and US markets. As a result, prices for medium size shrimps dropped to the lowest ever during the last few months.

In Europe, coldwater shrimp prices increased by 120% in 1986 over 1985, falling slightly in 1987, which led to EEC importers turn ing to warmwater shrimps. Unlike Japan and USA, cultured shrimps did not invade the European market in 1986 and 1987 and continued to play a marginal role. But in 1988–1989, a slightly differ ent trend is evident as will be seen later.

2.1 Japan

Japanese imports of fresh frozen shrimps in 1961 was 4,057 MT. In 1986, imports reached 212,805 MT, exceeding the 200,000 MT mark for the first time. 1987 was another record year-imports totalled 245,892 MT, reflecting a 15% increase over 1986. (Table 6) Fifty percent of 1987 production came from the aquaculture sector. Imports peaked again in 1988 when a total of 258,200 MT was recorded. A major turning point this year was in the ranking of supplier countries. Indonesia replaced Taiwan as the major supplier (38,642 MT), closely followed by China (37,987 MT), India (31,965 MT) and Thailand (21,933 MT). Taiwanese exports to Japan dropped by 58% as a result of continuous crop failure whereas Thailand increased her supplies to the market by 90% in 1988.

During the past three and half years, the Japanese Yen appreciat ed almost 50% against the US dollar. As a result, the market was characterised by heavy buying. (Figure 1) Although 1988 imports showed a 5% increase over 1987, the Japanese market began showing weakening signs from September 1988 following the Emperor's ill-health. Shrimp sales had been extremely low until February 1989. Prices started dropping, but imports continued at a high rate resulting in a huge inventory. In September 1988, Japanese cold storage holdings reached a record high of 90,000 MT and appears to remain so at this level. (Figure 2)

After the Emperor's death, the good sales anticipated during the Golden Week (3–7 May) did not, however, occur owing to the 3% consumption tax imposed by the Government which took effect in 1 April 1989. Transactions in Japan were brisk in the last weeks before the enforcement date and then slowed down again. Mean while, suppliers in Asia continued to hold heavy stocks as a result of increased production and were forced to lower prices in order to move at least some of these inventories. Price for 16/20 counts headless dropped to USD 7.50/kg in May which was the lowest in the history of world shrimp trade. More products moved into Japanese market. During January - June 1989, imports to talled 129,436 MT against 115,232 MT in the 1988 corresponding period. (Table 7)

Black tiger shipments from Taiwan and the Chinese white shrimp virtually dominated Japanese total imports. Traditionally, Japanese like the Chinese white shrimp (P. orientalis) because of its strong shrimp flavour. Black tiger has now, however, become the preferred species owing to consistent supplies and better presentation by Taiwanese and other cultured shrimp producting countries.

2.2 USA

The US shrimp market is generally believed to be characterised by three-year boom cycles followed by a drop. However, growth in shrimp imports in the last seven consecutive years has contra dicted this trend. Several factors have contributed to the strong US demand for shrimps during the last few years, namely:

1. increased marketing efforts and shortage of other fish on the market;
2. relatively low prices for shrimps, compared to other fishery products; and
3. consistent supplies.

Unlike Japan, the US shrimp market depends on domestic supplies. As domestic supplies tightened and demand showed unknown growth rates during 1984, 1985 and 1986, importers started to look for additional sources of supplies. A crisis developed in 1985 when the cultured shrimp output by Ecuador (the country's major sup plier) was at a record low owing to the EL Nino phenome non. At that time, China began offering medium size white shrimps which partly filled the gap. Other cultured species (mostly black tiger) also made a breakthrough at that time.

In 1987, the US market registered a record 468.5 million lbs (213,000 MT) imports. Until the early 80s, the bulk of US shrimps used to come from Latin and North American countries. Ecuador, Mexico (who lost her top ranking to Ecuador in 1987), Panama and Brazil were major suppliers. In 1986, however, China made a breakthrough by exporting 20.7 million lbs. In 1987, this increased to 41.9 million lbs, making it the third largest supplier to the US market. (Table 8)

More than 30% of 1987 imports comprised cultured species, com pared to 8% in 1982. Chinese white shrimps-mostly cultured-found a ready market in the USA as offer prices are usually 5–10% lower than Latin American products. Black tigers from Tai wan, Philippines, Indonesia, Thailand, Bangladesh and other sources were diverted from the sluggish Japanese market to the USA.

Some three to four years ago, I had doubts about the acceptance of black tigers in the US market. Well, I was wrong. In 1987, Taiwan exported 37.1 million lbs of black tigers to USA. Although this year exports from the country have been affected by short supplies from farms, cultured species from Thailand, Indonesia, Bangladesh, Philippines and India continue to move into the market.

Like Japan, shrimp imports set another all-time record of 503.1 million lbs (228,000 MT) in 1988. This is a 6% increase over 1987 imports. This time, China was the top supplier, followed by Ecuador and Mexico. The three countries in fact, accounted for over half of total US shrimp imports in 1988.

During 1988, the world's two major shrimp markets experienced diametrically opposed conditions. While the Japan market re mained depressed beginning with the Emperor's poor health and subsequent death, the US market was strong and alive.

US domestic supply was low in 1988 which was offset by high imports of mostly cultured shrimps. Some 37% of imports in 1988 comprised cultured shrimps i.e. whites and black tigers. Demand was strong thoughout 1988 and cold storage holdings did not increase despite high imports. This did not affect black tiger prices. Medium size shrimp prices continued to soften from September 1988. However, the overall price situation was better as a result of good demand thoughout 1988 compared to 1987. Price differences between large and medium sizes increased.

In 1988, Taiwan supplied only 17.3 million lbs which is 53% less than in 1987. In the case of Asian producers, apart from China, India was the major supplier (mostly peeled products), followed by Thailand, Pakistan and Bangladesh. Indonesian supplies to the US market in 1988 also increased by 18% (4.3 million lbs in 1988 over 3.6 million lbs in 1987).

Of total shrimp imports to the USA, almost 25% consists of peeled products with India dominating the market. January - May import volume figures for 1989, however, show China in the lead as top supplier of peeled products.

Import figures for January-June 1989 show a steady market, with imports totalling 190.8 million pounds which is almost the same as for the corresponding period last year. Supplies from Ecuador are 20% less due to declining production as a result of coldwater temperatures and decreased PL supplies. Chinese supplies showed a moderate 8% rise whereas Thailand and Philippines have increased their supplies by 103% and 100% respectively. Imports from Mexico dropped by 14%. (Table 9a) June imports are reportedly estimated to total 32 to 35 million pounds and August is expected to be the same.

June cold storage holdings totalled approximately 50 million pounds which is about 12% more than last month but almost the same as that of last year. In the US market, shrimp inventories usually rise a few percent monthly from June-July through November each year.

Apparent consumption of shrimps during the first half of this year has been about 49 million lbs per month which is slightly lower than 1988's 50.6 million lbs. Although prices are also low for the last several months, this did not really boost demand which is expected to increase during the summer months.

Of the three major markets, USA is considered to have the biggest scope for expansion for shrimp consumption which at present is estimated at only 1.86 kg (2.61 lb) per capita. Moreover, the sheer size of the US population of 241 million provides great possibilities for larger shrimp sales.

2.3 Europe

The European market is not as aggressive as Japan or USA. As mentioned earlier, per capita consumption of shrimps is only 0.5 kg in Europe implying, therefore, that the Europeans are not exactly shrimp eaters. This may explain the relatively low prices paid by European importers. Nevertheless, Europe's im ports of shrimps during the last four years have shown an upward trend. (Table 10a)

Coldwater shrimps, P. borealis and Crangon crangon, are the preferred species in the European market, Among the warmwater species, white, brown and freshwater shrimps are nor mally traded in the market as cheaper alternatives to the colds water variety. Crangon spp. are generally caught by FR Germany and the Netherlands, whereas P. borealis which is famous for its colour, are caught and exported by Norway, Green land, Denmark, Iceland and Faroe Islands.

During 1986 and 1987, the market was short-supplied due to re duced landings in Norway. As a result, prices for coldwater shrimps doubled in 1986 and since then warmwater shrimps have found a good market regaining what was lost following the Shigella food poisoning incident in the Netherlands in 1983.

During the last two years, imports virtually increased in all European countries, particularly in Spain where a remarkable 143.5% increase was evident. It should be noted that Spain is basically a market for head-on shrimps.

UK's 1987 imports remained poor at 40,900 MT. (Table 11) Lower shipments of cooked and peeled shrimps, stemming from reduced Norwegian supplies, were more than offset by higher imports of warmwater shrimps. Tropical shrimp imports increased by 7% owing to larger shipments from India and Bangladesh.

Farmed shrimps appear to have not made much of an impact on the European market. Only the freshwater species (M. rosen bergii) are traditionally imported. Supplies of freshwater shrimps are expected to be less in 1989.

Taking advantage of lower prices, some countries are trying to sell cultured white shrimps. Ecuador, for example, is selling about 20% of its production to Europe. Some Asian countries, on the other hand, capitalising on lower import duty under GSP, are selling black tigers to EEC. At the end of 1988, coldwater shrimp price accelerated by US$ 1.00/kg which helped warmwater shrimps to gain the a bigger share in European markets. Chinese white shrimps have found a new market in the Netherlands due to good quality and decreased landings of Crangon crangon (where larger than usual number of cods feed on this species). During Christmas, Argentina and Ecuador had flooded Spain's usual head-on market with shrimps, which led to a sluggish market until summer this year.

The market was dull at the beginning of the year. An early Easter this year coupled with bad weather prevented consumers from eating out during the holiday period. Like Japan, weather and season have an important impact on the European shrimp trade. With the start of holiday season it has picked up again. Euro peans were never really interested in expensive black tiger. This year, however, Asian suppliers are seriously looking forward to taking a chunk of the European market because of lower prices. As the market continues to be bleak in Japan, more marketing efforts have been targeted at European consumers. As a result, we see increased offers from Europe as well as supplies from Asian shrimp producers. UK, which is an important shrimp market for Asian producers, bought about 19,000 MT of warmwater headless and peeled shrimps. India, Pakistan, Bangladesh and China re mained the major suppliers. (Table 11) Chinese supplies in creased remarkably during the last three years. European buyers are expected to take more shrimps this year compared to the last few years, which could mean increased per capita consumption.

3. OUTLOOK

The “shrimp fever” appears to be over and people in the trade and production sector are beginning to think about total world demand and supply situation which is a healthy sign for the industry.

Japanese shrimp prices started to move up from late July and this trend continued for about two weeks before dropping again. Japanese cold rooms are holding products sufficient for the next 4–5 months' consumption; imports, thus, slowed down a bit since May 1989. Japanese supermarkets are about to start a promotion which will hopefully help to move out more shrimps from the cold rooms. However, imports this year are expected to be about 20 – 25,000 MT per month.

The relatively strong US dollar is likely to attract supplies from Asian countries away from their traditional outlet, Japan, to the USA which will give Japanese traders the opportunity to clear their sky high inventories.

Shrimp consumption in the USA is expected to be high during 1989. However, the market price is affected by the ever-increasing worldwide shrimp production.

The future demand for shrimps will depend on increases in dis posable income, price of shrimps and its substitutes and consumer taste.

World production of shrimps will vary from year to year because of annual fluctuations in landings from captured fisheries. Significant increases from this area are highly unlikely. There fore, the major increase will definitely be from the aquaculture sector. Although last year's growth in aquaculture was estimated at 27%, it is likely to slow down this year as a result of the market collapse, followed by less stocking of shrimps in the farms. Reduced supplies from China are also predicted by some because of political unrest in the country.

However, the future trend of the growth rate of world cultured shrimps will be around 17 – 20% which is still large compared to market growth. A recent study shows that if shrimp culture grows at this rate, world shrimp supplies will rise from 2.1 million MT in 1988 to 2.8 million in 1993 which means an average increase of 6% annually. If that happens, where will we sell these shrimps ?

To overcome this oversupply situation in the near future, it is necessary to further expand the domestic markets in shrimp pro ducing countries. In this respect, Southeast Asian shrimp pro ducers have a more advantageous position than other shrimp pro ducing countries. The vast market in the region, namely in Singapore, Hong Kong, Taiwan, China, Malaysia and Thailand, offer big possibilities for expansion. Fast expanding supermarkets and seafood restaurants will, undoubtedly, absorb more shrimps once these are available at more affordable price levels, which we all hope will be the case with increased supplies and reduced produc tion costs.

Price wise, we have already experienced such a drastic fall this year where shrimp prices dropped to an all-time low of US$ 7.50/kg. Of course, we do not expect it to drop any further; similarly we do not expect price to hit US$ 14.00 in the near future.

“The capacity of producing all the shrimps this world needs is not in question. The real challenge now is marketing these shrimps, getting consumers to eat more shrimps and more often”

Figure 1. Japanese shrimp imports and value of Yen with respect to US Dollar.

Figure 2. Monthly volume of shrimps held in Japanese cold storage, 1987 to 1989.

Table 1. Shrimp landing by 15 major producing countries, 1970 – 1987 (including freshwater shrimp catch and aquaculture production), in 1000 MT.

* = preliminary

Table 2. Catches of shrimp by major producing countries, 1984 – 1987.

Table 3. Shrimp aquaculture production (in 1.000 MT).

* p = preliminary
* NA = not available

Table 4. USA tropical shrimp landings, 1981 – 1987 (in 1,000 lbs).

* NA = not available

Table 5. European shrimp catches by country, 1982 – 1988 (in MT).

* Includes nephrops (scrampi/Norway lobster) in some cases. (Norwegia)
* NA = not available

Table 6. Japan annual imports of fresh, chilled and frozen shrimp by country 1984 – 1988 in MT.

* Source: Japan Marine Products Importers Association.

Table 7. Japan: Imports of frozen shrimp from major supplying countries (MT).

Table 8. USA: Annual shrimp imports (all types) by country of origin (1,000 lb), 1985 - May 1989

Table 9a. Imports of fresh/frozen shrimp, for January - May, by major supplying countries, 1988 – 1989 (in 1,000 lbs).

Table 9b. US imports of shrimp by product form, January - May 1989.

* Negligible volume

Table 9c. US cold storage holdings for shrimp.

Table 10a. European imports of chilled and frozen shrimp by importing countries, 1984 – 1988 (1,000 tons, product weight).

Table 10b. European imports of chilled and frozen shrimp by species groups and product (1,000 tons, product weight).

Table 11. Annual imports of frozen shrimp by country, 1983–1987 (in MT).

Table 12. Imports of fresh/frozen shrimp, 1988–1989 (MT).

Table 13a. France: Imports of shrimp, 1986–1988 (in MT).

Table 13b. Norway: Export of frozen shrimp, 1987–1988 (MT).

Table 14. Singapore: Imports of fresh/frozen shrimp, January- March, 1984–1989. Q = MT, V = 1.000 S$

Table 15. Hong Kong: Imports of fresh/frozen shrimp, January-March, 1984–1989. Q = MT, V = 1.000 HK$

TOWARDS AN ENVIRONMENTALLY
ORIENTED SHRIMP CULTURE INDUSTRY

Purwito Martosubroto and Rubimin Wibisono
Directorate for Natural Resource Management, Directorate General of Fisheries, Jakarta

ABSTRACT

Shrimp culture developed rapidly in the 1980's in pond culture as well as in the hatchery aspects. The effort to maximize production can be seen clearly to be increasing towards the use of intensive culture technology. Because of high stocking density and high feed concentration, the probability of diseases has also become correspondingly higher. This matter has already been reported several times by intensive pond operators as well as by hatchery operators. Water which is discharged and then used by other growers generally is no longer in good condition.

Alongside the large-scale hatcheries, the backyard hatcheries are also increasing in numbers primarily in Central Java. These small-scale hatcheries can be developed even in areas far from the coastline. The discharge of water in such inland areas will result in the deterioration of the soil and water around it and can eventually endanger plants and inland freshwater biota.

With the said problems advancement of shrimp culture should be done with considerations for other factors so that the environment can be safeguarded. Government action that are required among others are: regulate the location of backyard hatchery; regulate the use of groundwater; regulate the supply and discharge of seawater; require an environmental impact study for any culture activity. Along this line, the role of the local government, especially the BAPPEDA in the coordination of all parties concerned is urgently required.

1. INTRODUCTION

Coastal aquaculture which usually is known as tambak aquaculture has been in this country for a long time. Moreover according to historical records such activity was already known since 500 years ago and in Central Asia is estimated to be already 4,000 years old (Ling, 1977 as cited by Chua et al, 1988).

In the beginning tambak aquaculture was intended for milkfish but usually yields shrimps as a byproduct because such shrimps enter with the seawater supply. Because shrimps apparently has a much higher value than milkfish, shrimp culture became a more interesting activity. Especially after shrimp culture technology including hatchery technology was developed, shrimp culture became a target for investors. Shrimp culture development was very rapid during the 1980's. The trawl ban in Indonesian waters in 1980 gave an additional push to fisheries entrepreneurs to shift their activity to shrimp culture.

Shrimp culture is so lucrative that efforts to maximize production can clearly be seen as directed more and more towards the use of intensive culture technology. Because aquaculture basically is a human activity that involves the manipulation of the environment aimed towards producing for oneself, such initiative requires some prudent considerations such that profit is obtained without sacrificing the environment too much.

2. SHRIMP CULTURE INDUSTRY DEVELOPMENT

The fast development of shrimp culture ultimately turned it into an industry in itself which furthermore also developed other industries such as feeds, support equipment e.g. paddlewheels and pumps, as well as cold storage. Other indicators of the development of shrimp culture among others are:

2.1 Tambak Area Expansion

In 1977 tambak area in the whole Indonesia totalled 174,605 ha. By 1987, this has reached 263,162 ha or a growth of 50.71% during the ten year period (see Table 1). The growth of tambak before the 1980's was mostly directed at milkfish and only during the 1980's was it directed towards shrimp. In regions which already has traditional tambaks such as Java, Aceh and South Sulawesi the growth of tambak was not as fast as in other regions because many tambak operators merely took advantage of the milkfish ponds which were available and converted then to shrimp ponds.

2.2 Pond Shrimp Production

With the rise in the tambak hectarage, shrimp production grew likewise. In 1977 shrimp production was 21,642 tons and by 1987 this has grown to 59,680 tons or a growth of 178.1% during the ten year period. (Table 1)

When viewed according to the shrimp species produced, tiger shrimp (P. monodon) increased the most (500%) when compared to the other species (see Table 2), which points to the fact that the tiger shrimp is the only species selected for culture so far.

2.3 Number of Hatcheries

With the development of the shrimp culture industry the need for shrimp fry increased correspondingly. Shrimp fry requirement were filled by the shrimp hatcheries which also increased in numbers. In 1985 there were only 53 hatcheries. This increased to 113 units in 1989. (see Table 3)

The backyard-scale hatcheries that has appeared lately in principle, tries to partially assume the functions of a hatchery in providing for the rearing of larvae from the start. The presence of these backyard-scale hatcheries is of greater help to small farmers who needs only a small quantity of fry. These hatcheries have developed very fast especially in the Central Java area.

2.4 Shrimp Export

Shrimp became the mainstay in fisheries export. In 1987 out of US$ 475,523 million total fisheries product export, some US$ 352,435 million or 74.1% came from shrimps. In 1979, one year before the trawl ban, 34,743 tons of shrimps were exported, however, at present, without trawl fisheries (except in the Arafura waters), 44,267 tons of shrimps were exported. This signifies that the role of shrimp culture has become more important (see Table 4).

The increase in shrimp culture activity cannot but be attributed to government as well as private endeavor. Government effort to execute INTAM include the National Aquaculture Development Project, the ADB-assisted Brackishwater Aquaculture Development Project, the World Bank assisted Fisheries Support Services Project and other projects. Government projects mostly provide facilities such as hatcheries, canals and credit. Aside from this, extension activities and basic works conducted by BADC, Jepara and BALITDITA along with their respective subcentres, all helped pushed shrimp culture development. Credit facilities along with deregulation and debureaucratization actually also helped in making the investment climate for aquaculture better. With increased private sector participation, more and more of the concepts from entrepreneurs became realized. The number of private companies which engaged in and requested for permits to engage in shrimp culture reached 184 in 1988. (see Table 5)

Considering that aquaculture requires skill, even the entrepreneurs started to learn such that seminars, symposia, workshops in aquaculture particularly shrimp culture is often well attended by representatives of various private companies. Furthermore many of such technology dissemination activities are now being conducted by the private sector. The private sector also became more aware on the need to organize until such organization as HIPPERINDO was formed.

3. ENVIRONMENTALLY ORIENTED DEVELOPMENT APPROACH

It has already become the government's desire that development policy should be environmentally oriented. Such desire is true for all development activities including fisheries.

If a person should wish to engage in aquaculture activity, it is always necessary to have data regarding the region (land and water) which are relevant for aquaculture. With the increasing advance of aquaculture development activity, it is necessary to realize that aquaculture by itself has the potential to change its environment as discussed below.

3.1 Water Requirement

Shrimp culture, which is really brackishwater aquaculture, needs freshwater and seawater. Because the freshwater supply in coastal areas is usually limited especially if there is no river, often this is filled by using artesian wells. If the freshwater resource is limited but the number of users is high, the groundwater will become depleted. There is a real danger of saltwater intrusion and sinking of ground level. This has already occurred in the coastal areas of Taiwan until finally aquaculture activities have to be stopped.

3.2 Intensive Culture

Intensive culture technology requires a fairly high input such as feeds, fry and aeration because of high stocking density. It should be remembered that the level of feeds required in intensive culture results in a high organic matter content in water and this can be seen in the pond bottoms in the form of accumulated leftover feed. Because of the high stocking density and high feed requirement, the incidence of disease becomes higher.

Several intensive pond and hatchery owners have already reported cases of diseases which lately include, among others, viral diseases such as MBV (Monodon baculovirus), fungal diseases such as Lagenidium sp., Sirolpidium sp. and protozoan or ciliate diseases such as Zoothamnium sp., Vorticella and Epistylis. Water with such condition when discharged and then used by others for aquaculture, will no longer be of desirable quality. The exact amount of total organic wastes that is dis- charged by shrimp ponds is not yet known although for comparative purposes it can be cited that in trout culture in Denmark about 10 tons of phosphate is discharged into the coastal area every year for every ton of fish produced (Chua et al, 1988). This kind of data indicates the magnitude of the potential pollution that can result from intensive aquaculture.

3.3 Backyard Hatcheries

Backyard shrimp hatchery has already developed and has become popular since early 1989. Because the scale of this type of hatchery is so small and does not require anything special, it can be built anywhere where seawater can be supplied. Because of this, there is a possibility for a backyard hatchery to be built even in an area far from the sea. The danger here lies in how the seawater is discharged eventually. It would be advisable if such seawater is disposed of in the sea or in an area which is affected anyway by seawater (tidal areas). Disposal of seawater inland (using a blind drainage) will result in undesirable consequences to the soil and the water resource around it that eventually would endanger the survival of plants and freshwater biota inland.

With the above information it is clear that the advancement of shrimp culture industry should be accompanied by other considerations to safeguard against the occurrence of any of the negative consequences discussed above. Government actions which are needed include among others are:

1. regulations regarding the location of backyard shrimp hatchery;
2. regulations regarding the use of ground water;
3. regulations regarding the water supply and drainage canals;
4. require environmental impact study for certain aquaculture activities.

At present, the Directorate General of Fisheries is in the process of formulating the above matters especially items (a), (c) and (d). Such regulations need to be very specific. It needs to be known that within the framework of safeguarding against possible environmental damages, discussed above, the handling of shrimp pond problems cannot be separated from coastal management as a whole where the role of coordination between agencies is very necessary.

In this regard the role of local government especially BAPPEDA is highly desirable towards coordinating the agencies concerned. Unfortunately such delegation (of authority) cannot yet be implemented in its entirety and, not rarely, the importance of the (export production) sector is so prominent that the role of the local authorities in the management of coastal areas often becomes secondary.

In this connection the concept of coastal area management cannot be separated from the programmes that is at present being started in some provinces. The conceptualization of such actions from the very beginning will lessen possible conflicts that can happen between sectors and avoid the emergence of pollution in coastal areas.

4. REFERENCES

Chua, T.E, J.N. Paw and E. Tech. 1988 Coastal aquaculture development in the Association of Southeast Asian Nations (ASEAN): The need for development planning and environmental management. Paper presented to the ASEAN-US Coastal Resources Management Policy Workshop, Johore Bahru, Malaysia, 25–27 October 1988.

Martosubroto, P., B.A. Malik dan T. Trimulyantoro. 1989 Land resources for shrimp culture, potentials, regulations and methods of exploitation (in Indonesian). Prosiding Temu Karya Ilmiah Dukungan Penelitian Bagi Program Nasional Pengembangan Udang, Puslitbangkan No. 16, pp. 31–53.

Martosubroto, P. dan Hardjono. 1989 Developing environmentally oriented shrimp culture (in Indonesian). Lokakarya Pembenihan Udang Skala Rumah Tangga dan Budidaya Udang Intensif di Tambak. Warta Mina, Himpunan Makalah, p. 18.

Table 1. Growth in tambak area and production, Indonesia, 1977 – 1987.

Table 2. Growth of tambak shrimp production, Indonesia 1977–1987.**

** Does not include other crustaceans.

Table 3. Development of shrimp hatcheries in Indonesia by province, 1985–1989.

Table 4. Indonesian fish and shrimp export, 1977–1987.

Table 5. Number of companies engaged in tambak shrimp culture in Indonesia (as of August 1988).