SHRIMPS TALK #9 Discusses Shrimp Export Challenges and the Importance of Product Quality

In a productive and sustainable shrimp cultivation, the quality and safety of the products should be prioritized, especially to increase the competitiveness of Indonesian shrimp in the export market. To provide new insights for farmers on this topic, JALA together with Forum Informasi Budidaya (FIB) held the SHRIMPS TALK online webinar last August 25 2023.

This time, SHRIMPS TALK welcomed two esteemed speakers: Dr. Hassanudin Atjo, the Chairman of SCI Sulawesi, who shared about the Challenges of Shrimp Export and Competitiveness Strategies in the Global Market, as well as Innes Rahmania, A.Pi. S.Sos., MM, Chief Quality Controller of KKP, who shared about Quality Development of Shrimp Commodities. 65 attendees participated in the webinar.

Challenges of Shrimp Export and Competitiveness Strategies in the Global Market

In the first material, Dr. Atjo shared that Indonesia is in the fifth place among the world's major shrimp producers, following Ecuador, China, Vietnam, and India. Ironically, Indonesia has much greater potential due to its coastline, which provides more area for shrimp cultivation. One reason Ecuador and Vietnam are able to surpass Indonesia in shrimp production is their implementation of multi-step cultivation systems that can reduce the Cost of Goods Sold (COGS), whereas the one-step cultivation method is still more common in Indonesia.

To enhance Indonesia's competitiveness in the export market, four important aspects must be considered: quantity, quality, continuity, and market share. Currently, the primary export destination for Indonesian shrimp is the United States (US), but the US is also increasingly importing shrimp from other countries like Ecuador.

Challenges faced by Indonesian shrimp exporters include poor shrimp quality due to limited environmentally friendly cultivation systems, poor post-harvest handling, and lengthy supply chains and distribution networks. Additionally, COGS and logistic costs remain high, especially as infrastructure and downstream facilities are primarily concentrated on Java island, while many cultivation areas are located outside of Java.

Therefore, to improve competitiveness, cultivation systems need to be standardized at every technological level. Production inputs, human resources, and downstream processes should also be standardized across all shrimp-producing regions in Indonesia. Development of innovations, technologies, and regulations is essential to help Indonesia compete with other countries.

Quality Development of Shrimp Commodities

In the next topic, Ms. Innes began by discussing the trade balance of shrimp exports and imports from 2018 to 2022. Despite a 7.34% market demand for shrimp, Indonesia only exported 5.85%.

Shrimp in Indonesia undergo various processing methods, as its meat, head, skin, and legs can be processed into various products. Shrimp is primarily processed into frozen products, minced products, and other exports. However, exported shrimp often have quality issues. Shrimp exported to the US have faced problems due to poor hygiene practices. Cases such as Salmonella bacteria contamination, filthy shrimp, and the presence of antibiotics have been reported.

Furthermore, the issue of freshness in shrimp is caused by improper handling during harvesting, primarily due to a lack of proper cold chain systems. Improved cold chain facilities and proper harvesting locations are thus needed.

Currently, there are regulations related to quality assurance and safety of fisheries products, such as in Undang-Undang Nomor 45 Tahun 2009 and Peraturan Pemerintah Republik Indonesia Nomor 27 tahun 2021. Still, shrimp quality needs to be maintained from upstream to downstream. At the farm level, it’s crucial for farmers to obtain Good Aquaculture Practices certification to enhance the competitiveness of their products. Exporters not only need to ensure their shrimp products meet the Indonesian National Standards (SNI), but also comply with requirements of their target countries, especially regarding traceability and sustainability.

The attendees were eager to learn from both presentations. They also asked various questions regarding the implementation of multi-step cultivation systems and maintaining the quality and shelf life of shrimp products. JALA hopes that the shared information will be insightful for farmers to be more aware about the importance of maintaining the quality and safety of their cultivated shrimp.

If you are a shrimp farmer who want to manage your farm more efficiently to yield high quality shrimp, you can use JALA App. This shrimp farm management app is #HeretoHelp with various features to support your cultivation.

Access the web version of JALA App or download the app at Google Play Store or App Store!