5 Things to Consider Before Starting a Shrimp Farming Business

Understanding the non-technical aspects that influence cultivation

Due to the significant demand for shrimp in the market, businesses in the field of aquaculture, particularly shrimp farming, are growing in demand by the general public. Currently, Indonesia is attempting to meet global shrimp demand. As a result of this endeavor, Indonesia is now one of the world's top five shrimp producers. This strengthens the phenomenon of the aquaculture industry's growing popularity in Indonesia.

In Indonesia, vannamei shrimp farms are developed in coastal areas, such as Purworejo, Banyuwangi, Cilacap, Cirebon, Jembrana, Lampung, and many others. Those are areas where the shrimp industry is rapidly growing.

Despite its rapid growth, shrimp aquaculture faces a number of serious challenges. Farmers will find it tough to cultivate if it is not properly planned. Here are some things to think about before starting a shrimp farming business.

The risk and benefits of shrimp farming

Shrimp farming is a high-profit, high-risk business. This means that, while the earnings from this business are high, the risks are equally high. Shrimp harvest has one of the best sales margins when compared to other aquaculture commodities such as milkfish, seaweed, tilapia, and so on. The high profitability of shrimp farms is accompanied by a number of risks that threaten the long-term sustainability of shrimp farming.

Initial capital

Shrimp farming business requires a lot of preparation. The preparation includes buying or leasing land, pond construction, electricity installation, building mess, preparing tools to be used, and so on. All of these preparations, of course, require a considerable initial capital. The initial capital will be determined by the width of cultivated land.

Cultivation Expenditure

The expenditure of running a vannamei shrimp farming business is fairly high. This is due to the numerous cultivation necessities, such as feed, stock, chemicals, probiotics, and so on. Additionally, farmers must pay for laboratory testing services. The amount of expenditure is determined by several factors, including the cultivation system, stocking density, Survival Rate, and Feed Conversion Ratio (FCR).

Disease threat and natural factors

Shrimp farming, which falls under the category of living organisms, is vulnerable to disease. This threat must be prevented in order to avoid cultivation losses. Furthermore, shrimp farming businesses, which are typically found in coastal areas, cause ponds prone to natural phenomenon. Natural phenomena such as tidal flooding and high tides are common in coastal areas. This natural phenomenon can damage the pond if one chooses the wrong site.

Shrimp price

The market price of shrimp is highly fluctuated since it is heavily influenced by market conditions. This fluctuation is caused by the importing country's demand for shrimp. If the importing country's consumption of shrimp rises, so will the demand for shrimp, and the price of shrimp will rise as well. On the other hand, if demand is low, shrimp prices will fall.

Shrimp farming is a complex business. Prospective farmers must consider the numerous factors listed above before starting the vannamei shrimp farming business. However, if cultivation is planned and carried out properly, success is not difficult to accomplish.