Shrimp Industry

The Potential of Vannamei Shrimp Market in Indonesia [2024]

Kalyca Krisandini
Kalyca Krisandini
4 April 2024
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The potential of vannamei shrimp farming can be considered promising. When it comes to exports, this commodity has successfully raised the value of the Indonesian fishery export to USD 3.28 billion in August 2020, accounting for 40% of the fishery sector.

The Ministry of Maritime Affairs and Fisheries is confident in setting the national shrimp production target up to 250% by 2024 because of its promising potential. Revitalizing traditional shrimp farms is one of several measures the Ministry of Maritime Affairs and Fisheries established to meet the target.

However, according to the Fish Quarantine Agency, Quality Control and Fishery Product Safety (BKIPM), Indonesia’s shrimp export performance in 2023 was the lowest in the last three years. Some of the causes include fierce competition from other shrimp producing countries, such as Ecuador, and shrimp oversupply.

Export Volume of Indonesian Vannamei Shrimp 2019-Q3 2023.png

By the end of 2023, the Indonesian shrimp sector faced serious challenges due to this condition and the repeated drop in shrimp prices. Then, what about the potential of the Indonesian shrimp market, especially in 2024? What steps can be taken to fix the situation and fulfill the vannamei shrimp market in Indonesia? Read further in the discussion below.

Prospects for Vannamei Shrimp Farming in Indonesia

potensi pasar udang indonesia Indonesia is still heavily dependent on the export market. This can be seen from how 70% of Indonesia’s total exports go to the United States (US) market. When the US accused shrimp producing countries of dumping and issued a countervailing duty petition in the fourth quarter of 2023, Indonesia was one of the countries impacted, particularly at the shrimp farmer level.

The dependence on export markets needs to be overcome by shifting strategies to domestic markets. However, as of 2023, the Indonesian shrimp market can be considered to still be struggling. According to data from the Statistics Indonesia (BPS), the median value of shrimp consumption per capita from 514 regencies in Indonesia is 0.43 kg/capita.

The dependence on exports when the global market fluctuates and the low uptake of shrimp consumption in the domestic market causes the prospects for vannamei shrimp farming seem less optimal. However, there is still hope to bounce back and fix this situation when we enter 2024.

In response to allegations of dumping and countervailing duty petition, the Ministry of Trade, the Ministry of Maritime Affairs and Fisheries, and AP5I have held an Anti-Dumping and Anti-Subsidies Investigation Petitions Discussion Meeting. This measure was taken to show Indonesia’s commitment to fulfilling shrimp commodities under regulation compliance.

In early 2024, shrimp prices in several areas gradually increased. Several players in the shrimp industry have also started to plan efforts to boost the uptake of domestic shrimp consumption.

Shrimp Prices in West Nusa Tenggara from January to March 2024 Source: Shrimp Price Feature in JALA App

Shrimp Prices in East Java from January to March 2024 Source: Shrimp Price Feature in JALA App

This gradual improvement hopefully will last a long time. That way, the potential for shrimp farming will again be high and promising. Domestic market opportunities can also be expanded through various initiatives and programs from shrimp industry players.

What Should We Do to Meet the Vannamei Shrimp Market in Indonesia?

Targeting domestic market fulfillment is based on the principle of developing the right strategy to ensure that local shrimp or fisheries products dominate the market, instead of imported ones. In light of this, farmers can take several actions, including

Implementing the right cultivation practices

One of the primary keys to meet the shrimp demand is cultivation productivity. Therefore, farmers need to implement the right cultivation practices to achieve productivity goals.

These cultivation practices need to be implemented at all stages of cultivation, from preparation to harvest. Some examples of actions that can be taken include

  • Choosing shrimp fry with a specific pathogen free (SPF) certification to ensure shrimp health from an early age
  • Implement strict biosecurity
  • Apply treatment based on pond and shrimp conditions
  • Implement effective feeding management
  • Minimizing pollution in the environment caused by pond waste

Ensuring the quality of shrimp

Besides maintaining a stable shrimp production, farmers need to ensure that the shrimp are of high quality as well. Prevent shrimp disease outbreaks as much as you can to ensure optimal condition during harvest. Maintaining the quality of shrimp will satisfy customers and improve the likelihood that they will make more purchases.

Managing cultivation through regular recording and monitoring

Shrimp farming practices also need to include proper management, namely through recording and monitoring the condition of shrimp and ponds. Farmers are advised to record every cultivation parameter regularly, from water quality, feed, sampling results, disease, to mortality.

These data records will yield a series of crucial insights. Farmers will then find it easier to determine the best course of action for their cultivation. The production and quality of shrimp will be more optimal.

Conclusion

Even though the Indonesian shrimp market is faced with the challenge of low domestic consumption, there is still hope for a better rebound in 2024. Farmers have a significant contribution and can take the following steps to meet the vannamei shrimp market in Indonesia:

  • Implementing the right cultivation practices
  • Ensuring the quality of shrimp
  • Managing cultivation through regular recording and monitoring To facilitate shrimp farming management, JALA App is #HeretoHelp and allows you to
  • Record and monitor 40+ cultivation parameters
  • Estimate cultivation performance
  • Manage farm finances and inventory
  • Check shrimp prices in various regions
  • And many more!

Let’s start your shrimp farming journey with JALA App! Access through the web version or download the app on Google Play Store or App Store.

References

Begini Strategi Menggenjot Produksi Udang dengan Tetap Berkelanjutan | Mongabay

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