Despite its popularity, the vannamei shrimp industry still has various challenges. Not only are there technical issues in cultivation, the macroeconomic situation also becomes a serious challenge. The global shrimp market issue has an indirect impact on farmers.
This shrimp industry challenge was the second topic in the 14th Shrimps Talk Webinar held by JALA after previously discussing the importance of CBIB for shrimp farming. The speaker at this session was Haris Muhtadi as Chairman of Shrimp Club Indonesia (SCI).
At the end of 2023, shrimp price in Indonesia kept declining, as shown in Figure 1. This occurrence is caused by a lot of turmoil that decreased shrimp prices at the farmer level.
Figure 1. Shrimp Price Trend in Indonesia in 2023
According to SCI’s analysis, there are several factors that presumably cause shrimp decline at the end of 2023. The factors are as follows:
The industry situation in Indonesia is getting tough due to high competition among other producer countries. Shrimp production in Ecuador, India, and Vietnam is higher although backed with lower production cost.
Shrimp industry conditions at farmer level are worsened with rising costs in almost all production variables. Haris presented an estimation of production cost per kilogram of shrimp that must be borne by farmers as follows:
Although production cost is also influenced by shrimp size and farm location, the aforementioned cost reaches IDR 45,000/kg or USD 2.88/kg in total.
This number is assumed to be under normal production conditions, normal shrimp size, and zero disease infection. If disease-related deaths occurred, the number would be significantly higher.
In light of the fact that size 100 shrimp reaches IDR 48,000/kg and size 50 shrimp IDR 58,000/kg, it can be said that production margins have dropped significantly compared to past few years.
Apart from international issues, the Indonesian shrimp industry is still facing a latent issue that is shrimp disease. Disease will significantly affect production costs.
The decline in shrimp prices has significantly affected cultivation. The impact are as follows:
In the light of the problems that occurred, SCI has attempted to recommend solutions to the Minister of Maritime Affairs and Fisheries. SCI came up with these recommendations:
SCI has also encouraged the government to assist the campaign to increase domestic shrimp consumption.
The 14th Shrimps Talk received an enthusiastic response from the audiences, as seen from the questions raised about CBIB and shrimp industry challenges. Through this series of discussion, hopefully farmers can run their cultivation in a productive and sustainable way.
If you are shrimp industry actors who wish to get the latest information and insight about the industry and cultivation methods, please look forward to the next Shrimps Talk. Follow JALA’s Instagram account at @jalaindonesia so you don’t miss the update. See you in the next Shrimps Talk!
Get notifications on cultivation tips, feature and service updates, as well as JALA's latest activities.