SHRIMP INDUSTRY IN VIETNAM Innovation toward sustainable development
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1 SHRIMP INDUSTRY IN VIETNAM Innovation toward sustainable development Tran Ngoc Hai, Truong Quoc Phu, Vu Ngoc Ut College of Aquaculture and Fisheries Can Tho University, Vietnam XVI Congreso Ecuatoriano de Acuicultura & Aquaexpo 2014 Guayaquil Ecuador, Octubre 2014
2 Outline 1. Introduction 2. Development of shrimp seed production 3. Development of shrimp farming systems 4. Development of service sectors (feed, processing, other materials) 5. Certification 6. Institutional structure and legal management 7. Concerned issues 8. Strategy for the year 2020 and vision to Conclusions
3 Vietnam has 3260km of coast line, over 1.2 million ha of inland water surface, and large number of islands >>> good potential for aquaculture and fisheries, especially the Mekong Delta 1. Introduction
4 1. Introduction x1000 Ton Aquaculture Capture fisheries Aquaculture grows rapidly in the past decade (3.1 million tons by 2012); Mekong Delta contribute over 70% of aquaculture area and production of the whole country
5 1. Introduction Aquaculture in Vietnam is very diverse in: Culture species: catfish, shrimp, freshwater prawn, clam, marine fish - cobia, indigenous freshwater fish.. Farming systems (pond, tanks, cages, rice field) Water bodies: fresh water, brackish water and marine water Scale: small large Organization: households, cooperatives, entrepreneurs, companies For different targets: Export, domestic markets, family uses
6 1. Introduction Shrimp industry is one of very dynamic and important sectors of aquaculture in Vietnam.
7 2. Development of shrimp seed production
8 2. Development of shrimp seed production Primary studies in the North, with local species Primary studies in the Mekong Delta Mekong Delta hatcheries only produced tiger shrimp Vanamei shrimp hatcheries and farming developed in the Mekong Delta 1970s Commercial hatcheries developed in the Central provinces (Tiger shrimp) Commercial hatcheries developed in the Mekong Delta (Banana shrimp) Vanamei shrimps were introduced and then developed in the Central provinces Time line on development of shrimp seed production Many large hatcheries established in VN and MD
9 2. Development of shrimp seed - Number of hatcheries is decreased, but production is increased rapidly - A very large number of PL of Vanamei shrimp were produced from small number of hatcheries - >>> Shrimp hatcheries are scaled up and modernized for higher quality of seed production Number of harcheries (Unit) Number of tiger shrimp hatcheries Production of tiger shrimp Year Shrimp seed production in Viet Nam Production of Postlarvae (billions) Number of w hite leg shrimp hatcheries Production of w hite leg shrimp 2013: 47 billions PL of Vanamei, 21 billions PL of monodon Central provinces share 40% total hatcheries, 70% of PL seeds
10 2. Development of shrimp seed production Large shrimp hatcheries in Vietnam
11 2. Development of shrimp seed production Major characteristics Characteristics Monodon shrimp Vanamei shrimp Owners Private households, local companies Companies (local or foreign companies) Main producing places Mekong Delta Central provinces, and Mekong Delta Capacity (m 3 ) Broodstock sources From wild catch Imported directly or domesticated Larval rearing systems Open or Recirculating system Rearing density (Nauplii/L) Open or Recirculating system Feed With or without live algae With live algae Survival rates (%) 50-70% 40-60% Production (PL/hatchery/yr) million (11-431) 47-1,780 million (7.7-3,600)
12 3. Development of shrimp farming systems Khoa Thủy Sản - ĐHCT
13 3. Development of shrimp farming systems Extensive farming systems, relying only on natural seed Semiintensive and intensive systems using tiger shrimp in the central provinces Vanamei shrimp intensive culture in the center Vanamei shrimp intensive shrimp culture in the Mekong Deta 1970s 1980s Improvedextensive systems using seeds collected from the wild (mangroveshrimp, riceshrimp) Semiintensive and intensive systems, using tiger shrimp (Mekong Delta) The certificate for organic shrimp farming (Mangroveshrimp systems) GAP, BAP certification for intensive farming
14 3. Development of shrimp farming systems Culture area (ha) Production (tons) Diện tích (ha) 600, , , , , , , , , , , ,000 50,000 0 Sản lượng (tấn) Diện Culture tích-vn area (ha) VN Sản Production lượng-vn - VN (ton) Diện Culture tích area - ĐBSCL MD (ha) Sản Production lượng - MD ĐBSCL (ton)
15 3. Development of shrimp farming systems Year Tiger shrimp Vanamei shrimp `Culture area (ha) Production (tons) Culture area (ha) , ,944 18,441 57, , ,234 15,079 47,827 Production of (tons) , ,174 25, , , ,763 41, , , ,853 63, ,001 - Continuously increase in culture area and production during , especially Vanamei shrimp : totally 652,613ha, 475,854 tons Shrimp culture area (ha) Year Total culture area Tiger shrimp culture area White leg shrimp culture area Shrimp production (tons) Total production Tiger shrimp production White leg shrimp production
16 3. Development of shrimp farming systems Viet Nam Mekong Delta Shrimp farming area (ha) Shrimp production (tons) By 2013, Mekong Delta covers for 92% of total culture area and 80% of total production of the country
17 3. Development of shrimp farming systems
18 3. Development of shrimp farming systems Integrated mangrove-shrimp farming systems Mainly located in the buffer zone of the coastal area Farm area: 3-10ha, ditch 25-30% Private households in the state enterprises Mangrove 50-70%, pond 30-50% Extensive management 6000 ha was recognized as organic shrimp farming by Naturland. Mangroves Pond/ditch
19 3. Development of shrimp farming systems Integrated mangrove-shrimp farming systems Common design Improved design Mangroves Pond/ditch (1) (2) (3) (5) (6) (7) (8) (10) (11) 1. (4) (9) (10) 2. (1) (2) (3) (4) (5) (6) (7) (8) (9)
20 3. Development of shrimp farming systems Integrated mangrove-shrimp farming systems Pond preparation: by removing mud sediment and applying debris root extract to kill predating fish Stocking: Wild seeds and additionally stocked with tiger shrimp (1-4 ind/m 2 ), crabs (0,05 ind/m 2 ) Water exchange: based on tidal regimes Feeding: No Chemicals: No Harvest: every two weeks after 2 months of culture
21 3. Development of shrimp farming systems Integrated mangrove-shrimp farming systems
22 3. Development of shrimp farming systems Integrated mangrove-shrimp farming systems 600 Harvest and Production: - Harvesting every two week - Production: Shrimps: kg kg/ha/year (tiger shrimps 50-60%) Production (kg/ha/yr) Based on total area Extensiv e Mangrov e- shrimp Based on w ater area Extensiv e Mangrov e- shrimp Blood cockle Fish Crab Wild shrimp Cultured shrimp Mud crabs: kg/ha/year Wild fish: kg/ha/year Values (USD/ha/yr) Based on total area Based on w ater area Total cost Gross income Net income 0 Extensiv e Mangrov e- shrimp Extensiv e Mangrov e- shrimp
23 3. Development of shrimp farming systems Improved - extensive shrimp farming systems Covering with largest area (337000ha) Located in economic zone Present with seaweed, aquatic plant or some mangrove; wild or planted, optimum 30-50% area Extensive management as the mangroveshrimp farming systems Private households Farm: 3-5ha, ditch: 25-30% Stocking: 4-6 tiger shrimps/m 2 ; crabs/ha Feed: Casually Water exchange: by tidal regimes Harvest: every two weeks from 2 months of culture. Shrimp production: kg/ha/yr Crab production: kg/ha/yr
24 3. Development of shrimp farming systems Improved - extensive shrimp farming systems Characteristics of extensive and mangrove-shrimp farming systems in the Mekong Delta CHARACTERISTICS Unit Extensive Mangrove-shrimp FARM STRUCTURE Total farm area (ha) 3.57 ± ± 2.59 Mangrove area (%) 0 a ± b Pond (ditch) area (%) 28.9 ± a ± b Depth of machined made ponds (m) 1.15 ± ± 0.28 Maximal water level on platform (m) 0.3 ± ± 0.13 Tree types Mainly Rhizophora Mangrove density (trees/ha) ± POND PREPARATION Pond excavation frequency (time/yr) 1.68 ± ± 0.56 Sediment layer excavated (cm) ± ± Predator treatments (times yr -1 ) 1.5 ± ± 0.59 Chemicals Debris roots Debris roots
25 3. Development of shrimp farming systems Improved - extensive shrimp farming systems CHARACTERISTICS Unit Extensive Mangrove-shrimp STOCKING Shrimp (times yr -1 ) 5.75 ± ± 2.62 (inds m -2 water yr -1 ) ± ± Crab (times yr -1 ) 1.65 ± ± 1.08 (inds m -2 water yr -1 ) 0.06 ± ± 0.08 Fish (times yr -1 ) 2.5 ± 3.54 a 1.21 ± 0.43 b (inds m -2 water yr -1 ) ± 0.17 Blood cockle (times yr -1 ) 1 1 ± 0 (inds m -2 water yr -1 ) ± 2.16 MANAGEMENT Water exchanges (days month -1 ) 6.67 ± ± 2.79 (% day -1 ) 40 ± ± YIELDS Total (kg ha -1 yr -1 ) ± ± Cultured shrimp (kg ha -1 yr -1 ) ± ± Wild shrimp (kg ha -1 yr -1 ) ± ± Crab (kg ha -1 yr -1 ) 80.2 ± ± Fish (kg ha -1 yr -1 ) ± ± Blood cockle (kg ha -1 yr -1 ) 7.5 ± ±
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27 3. Development of shrimp farming systems Rotational rice - shrimp farming systems Largely extended since Shrimp culture in the dry season, rice cultivation in the rainy season Farm structure: Traditional (A) and improved design (B); ha/farm Stocking density: 2-5 or 7-10 shrimps/m 2 Water level on the flat-form: m Water: mainly pumped, limited exchange. Lime is often used to control ph and alkality Feeding: pellet feed. Culture duration: 3-4 months Traditional design Improved design
28 3. Development of shrimp farming systems Rotational rice - shrimp farming systems Production: Traditional: kg/ha/crop Improved systems: kg/ha/crop Rainy season: Mono rice cultivation Integrated rice + Macrobrachium
29 3. Development of shrimp farming systems Rotational rice - shrimp farming systems Minh et al, 2013 Parameters Unit Alternative rice shrimp farming system Traditional systems (Model 1) Improved systems (Model 2) Farm area ha 2.72± ±1.53 Ditch area % farm area 30.6± ±6.35 Ditch width m 3.40± ±0.56 Water level on platform m 0.34± ±0.13 Water level on ditch m 1.23± ±0.18 Stocking density PL/m2 2.18± ±1.63 Ratio of households testing shrimp seed Ratio of households feeding shrimp Ratio of households rearing postlarvae % % % Culture duration days 108± ±23.9 Shrimp BW at harvest g 30.4± ±9.35 Yields Kg/ha/crop 232±132 1,217±611
30 3. Development of shrimp farming systems Rotational rice - shrimp farming systems Minh et al, 2013 Parameters Unit Alternative rice shrimp farming system Production cost Gross income Net income Million VND/ ha Million VND/ ha Million VND/ ha Traditional systems (Model 1) Improved systems (Model 2) 6.46 ± ± ± ± ± ± 71.8 B/C
31 3. Development of shrimp farming systems Rotational rice - shrimp farming systems Shrimp + (rice prawn) on rice fields Macrobrachium production: kg/ha Description Value Freshwater prawn (Rainy season) Production cost (VND Million/ha) 5.56±2.09 Gross income (VND Million/ha) 12.12±6.07 Net income (VND Million/ha) 6.56±5.71 B/C 1.34±1.26 Rice (Rainy season) Production cost (VND Million/ha) 5.69±1.04 Gross income (VND Million/ha) 10.45±4.10 Net income (VND Million/ha) 3.80±4.66 B/C 0.67±0.85 Tiger shrimp (Dry season) Production cost (VND Million/ha) 9.57±5.06 Gross income (VND Million/ha) 23.09±12.70 Net income (VND Million/ha) 13.26±10.64 B/C 1.66±1.22
32 3. Development of shrimp farming systems Rotational rice - shrimp farming systems
33 3. Development of shrimp farming systems Intensive shrimp farming systems
34 3. Development of shrimp farming systems Intensive shrimp farming systems Major characteristics Farms were located in planed area, in the central provinces and the Mekong Delta Farm scales can be from small households (1-3ha) to large company ( ha) Pond area range from ha/pond, earthen or lined bottom Farm firms: households, entrepreneurs, cooperatives, association, companies
35 3. Development of shrimp farming systems Intensive shrimp farming systems Major characteristics Many farms are shifting from Monodon shrimp to Vanamei shrimps Normally two crops/year, with salinity from 3-20ppt in the Mekong Delta, 30-33ppt in the central provinces Yield: 6-15 tons/ha for Vanamei, 2-8 tons/ha for Monodon Large companies have closed chains of seed production, farming, processing, and exporting products GAP and BAP have been applied at large companies
36 3. Development of shrimp farming systems Intensive shrimp farming systems Bio-security and water treatment are importantly considered, especially in large company Seed are all checked for virus before stocking. Vanamei PL are usually nursed before stocking Probiototics are popularly used Feeding can be by manual or machine Different aeration methods are applied
37 3. Development of shrimp farming systems Intensive shrimp farming systems Shrimp farming in the central provinces (Gam et al, 2014) Characteristics Vanamei Vanamei Tiger shrimp shrimp shrimps (Bioflocs) (not bioflocs) (not bioflocs) Pond area (ha) 0.25±0,07 a 0.29±0.09 a 0.32±0.07 b Pond depth (m) 1.40±0.22 b 1.23±0.10 a 1.21±0.08 a Stocking density (PL/m 2 ) 152±13 c 87±10 b 23±4 a Culture period (days) 90±7 a 99±8 b 108±12 c Harvesting size (inds/kg) 80.31±6.52 a 78.47±5.25 a 40.69±5.59 b Survival rate (%) 83.54±5.76 b 81.94±4.39 b 76.38±13.13 a FCR 1.24±0.56 a 1.32±0.08 b 1.52±0.55 b Yield (ton/ha/crop) 15.97±2.59 c 9.14±1.19 b 4.22±1.02 a
38 3. Development of shrimp farming systems Intensive shrimp farming systems Financial analysis of intensive shrimp culture in the Central provinces (Millions VND/ha/crop) Characteristics Vanamei shrimp Vanamei shrimp Tiger shrimps (Bioflocs) (not bioflocs) (not bioflocs) Fixed cost ±31.92 b 26.53±12.25 a 24.37±7.97 a Variable cost 1,105.53± c ± b ±75.46 a Total cost 1,236.58± c ± b ±80.69 a Gross income 1,926.31± c ± b ±124.5 a Net income ± c ±94.51 b ±60.28 c B/C 0.57±0.11 a 0.32±0.16 a 0.27±0.12 a
39 3. Development of shrimp farming systems Intensive shrimp farming systems Shrimp farming in the Mekong Delta (Nguyen et al, 2014) Characteristics Farming systems Vanamei shrimp Tiger shrimp Farm area (ha/household) 4.78± ±2.52 Pond area (ha/pond) 0.57± ±0.11 Water depth (m) 1.42± ±0.10 Stocking density (PL/m 2 ) 80.7±16.8 b 26.4±6.3 a Culture periods (days) 101.3±9.7 a 136.4±15.1 b Survival rate (%) 81.4± ±20.1 Harvesting size (inds/kg) 51.5±8.3 b 31.6±7.3 a Yield (tons/ha) 12.90±3.45 a 6.63±1.84 b FCR 1.17±0.08 a 1.80±0.18 b
40 3. Development of shrimp farming systems Intensive shrimp farming systems Tiger shrimp farming firms in the Mekong Delta Characteristics Small-scale private households Farming entrepreneurs Cooperative/ Companies farming clusters/clubs Total farm area (ha) Groups of small-scale households Labors Family labors Family labors, hired labors and technicians Family labors Hired labors and technicians Production chains Only farms Only farms Only farms Farms, with or without hatcheries, processing plans, feed factories
41 3. Development of shrimp farming systems Intensive shrimp farming systems Intensive tiger shrimp farming firms in the Mekong Delta Parameters Units Small-scale households (n=60) Intensive tiger shrimp farming firms in the Mekong Delta Entrepreneur (n=11) Clusters/club/ Cooperative (n=18) Companies (n=11) Total farm area ha 1.75± ± ± ±136 Average pond area ha 0.45± ± ± ±0.12 Water level m 1.38± ± ± ±0.12 Stocking density PL/m ± ± ± ±8.01 FCR 1.54± ± ± ±0.11 Survival rates % 65.1± ± ± ±7.77 Culture duration Harvested body weight days/cr op 141± ± ± ±10.2 g 25.6± ± ± ±2.74 Yield kg/ha 5,336±1,536 6,773±1,133 6,450±1,321 8,355±1,163 (Tung and Hai, 2012)
42 3. Development of shrimp farming systems Intensive shrimp farming systems Parameters Units Small-scale house-holds (n=60) Intensive tiger shrimp farming firms in the Mekong Delta Entrepreneu r (n=11) Clusters/club/ Cooperative (n=18) Companies (n=11) Production cost 1000 đ /kg 82.5±9, ±3, ±4, ±3, đ /ha 429,452± 93, ,931± 73, ,573± 83, ,200± 85,182 Gross income 1000 đ /kg 121± ± ± ± đ /ha 673,698± 311, ,610± 238, ,356± 272,880 1,148,318± 169,790 Net icome 1000 đ /kg 38.3± ± ± ± đ /ha 244,246± 231, ,679± 189, ,783± 200, ,118± 95,669 B/C 0.50± ± ± ±0.11
43 3. Development of shrimp farming systems Supper- Intensive shrimp culture in recirculating systems Survival rate and yields of shrimps in recirculating tank culture systems (Tien et al, 2013) (500 shrimp/m 3 ) Substrate ratio Survival rate (%) Yield (kg/m 2 ) 10% culture volumn 51,17 ± 0,38 a 3,125 ± 0,075 a 20% culture volumn 62,25 ± 1,00 b 3,819 ± 0,125 b 30% culture volumn 62,33 ± 1,23 b 3,753 ± 0,227 b Open system 22,25 ± 0,87 c 1,259 ± 0,038 c
44 3. Development of shrimp farming systems Supper- Intensive shrimp culture in indoor-pond systems - Started since 2011 by some companies, in Bac Lieu province - Vanamei shrimp - Stocking density inds/m 2 - Culture duration: days - Harvest size: inds/kg - Yield: tons/ha - Total production: tons/farm/year (3 crops) - Several other companies are applying the model
45 4. Supportive sectors
46 4. Supportive sectors Feed plant: 110 factories, of which 76 in the Mekong Delta (CP, Cargill, Grobest, Uni- President, TomBoy ) A large systems of companies and service centers do supply on feed, chemicals, probiotics, additives, materials, shrimp seeds for the industry
47 4. Supportive sectors Artemia cyst production in Vietnam
48 Production (Ton raw cysts) Yield (kg/ha/crop Culture area (ha) 4. Supportive sectors Artemia cyst production in Vietnam Culture area (ha) Total production (Ton, raw cysts) Yield (Kg/ha/crop) today, VN hatcheries require Artemia cysts app tons/yr (30-40 M US$) but recently Artemia production in Vinh chau and Bac lieu covers only app. 5 % of the country s demand
49 4. Supportive sectors Shrimp processing plant: 564 factories, of which 206 in the Mekong Delta (a) (b) (c) (d) (e) (f) Figure 10. Some shrimp products of Minh Phu Coop. (a): Black tiger shrimp head on shell on; (b): Cooked peeled divined tail on (c) Tempura; (d) Raw peeled & Deveined tail on; (e) Marinated shrimp skewered PTO; (f) Raw peeled deveined tail off (Source:
50 Total export value of shrimp products by 2013: 2.65 billion USD (44.68% of total export value of fisheries sectors, billions USD) Major export markets: Japan, USA
51 5. Certification in shrimp farming Organic shrimp farming (by Naturland): since 2000, with 6000ha of mangrove-shrimp farms Viet Gap: since 2010 BAP: 30 companies
52 5. Certification in shrimp farming Minh Phu Seafood Group - Vietnam (National Fish and Seafood Cooperative Venture) BIM Foods JSC Stapimex Group - Vietnam Stapimex Group - Vietnam BIM Foods Group - Vietnam Minh Phu Group - Vietnam Ngoc Tri Seafood JSC Group - Vietnam Viet Nam Clean Seafood Group - Vietnam Thong Thuan Seafood Group - Vietnam Quoc Viet Seaproducts Processing Trading and Import Export Group - Vietnam Saota Foods JSC (Fimex VN) Group - Vietnam Camau Frozen Seafood Processing- Camimex Group - Vietnam Thuan Phuoc Seafood & Trading Group - Vietnam Cadovimex Im-Ex & Processing JSC Group- Vietnam Nhatrang Seaproducts Group - Vietnam Nhatrang Fisheries (NHATRANG FISCO) Group - Vietnam Stapimex Group - Vietnam Vietnam Fish-One Group - Vietnam Seaprodex Minh Hai Group - Vietnam BAP**** BAP**** BAP**** BAP*** BAP*** BAP*** BAP** BAP** BAP** BAP** BAP** BAP** BAP** BAP** BAP** BAP** BAP** BAP** BAP**
53 6. Institutional and Legal management Institutional structure Ministry of Agriculture and Rural Development (MARD) (with belonged units) Department of Agriculture and Rural Development (with belonged units) Division of Agriculture Fisheries Forestry (with belonged units) - Relevant Organizations, Associations, Institutions, Companies, Universities >>> Horizontal and vertical integration
54 6. Institutional and Legal Some important decisions: management 1999: Restructure of agriculture production; 2000: Restructure of rice cultivation to alternative rice shrimp farming 2007: Permitting culture of Vanamei shrimp in the Mekong Delta 2012: Master plan for aquaculture and fisheries to 2020 and vision to : Restructure of agriculture toward promoting added values and sustainable development Important activities (in cooperation with other Universities and institutions): Research, technology transfers, aquaculture extension, certification.
55 7. Issues Small scales Infrastructure Shrimp seeds quantity/ quality Environmental issues Diseases Input cost (feed, ) Linkages in production and trade Market barriers Impacts of climate change
56 8. Strategy to vision to 2030 Tiger shrimps Culture area (ha) Production (tons) Seed quantity (billion) Feed (tons) Export value (Million USD) 570, , , Mekong delta (%) Vanamei shrimps 60, , , Mekong delta (%) Total (VN) 630, , ,009, Total (MD) (%)
57 8. Strategy to vision to 2030 Culture area of tiger shrimp farming systems to 2020 (Totally 26% area for intensive shrimp farming systems of tiger shrimp and Vanamei shrimps)
58 8. Strategy to vision to 2030 To achieve the targets, many solutions and methods were put out for implementation
59 Conclusions Shrimp industry is a very dynamic and important sector in Vietnam; Mekong Delta is the main producing place. Shrimp hatcheries are decreased in number but is increased in scale and modernized in technology to ensure shrimp seed quality Vanamei shrimp is an increasingly important species but tiger shrimp is still the main species for culture. Shrimp farming systems are diverse; and Intensive shrimp farming system is increased in scale, but large area of extensive farming systems are still maintained for sustainable development Shrimp culture is on the way of scaling up, and applying international standards (BAP, GAP ) for further development Many activities and solutions are being carried out by different stakeholders to due with concerned issues.
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