1. Enabling sustainability in the shrimp aquaculture system Dao Huy Giap Department of Aquaculture

2. Contents Sustainability in the shrimp aquaculture systems Environmental health Economic profitability Social and economic equity Institutional arrangement Conclusion

3. SUSTAINABILITY IN THE SHRIMP AQUACULTURE History of development  Expanded rapidly since early 1980s  Half of the shrimp eaten in industrialized countries is grown in tropical developing countries  High risk of disease outbreak, environmental pollution, socio- economic inequity  The buyers criticized by NGOs as the one get profit but also facilitate the environment, socio-economic problems

4. World shrimp aquaculture production during 1976 – 2006

5. World shrimp imports quantity during 1976 – 2006

6. Shrimp commodity flow Vietnam, nearly 80% of farmed shrimp is produced by small- scale shrimp growers. 70% of raw materials sold to processors are of wholesalers. Middlemen are important actor for transferring live shrimp to local market

7. Sustainability in the shrimp aquaculture systems Tool for sustainable development of shrimp farming Codes of conduct, codes of practice, guidelines, standard, certification and indicators. Three main goals:  environmental health,  economic profitability and  social and economic equity, Through  feasible technology,  better management and  supported policy approaches

8. 2ENVIRONMENTAL HEALTH Water pollution  The effluents of shrimp farm  Disease threat to the natural shrimp population  Demand for freshwater create pressures on the water supply Solution  no use of fresh groundwater  minimize discharge of farm effluents and sediment  Zero water exchange techniques  lower intensity shrimp aquaculture

9. Destruction of mangrove and tidal flat Shrimp farming is a major cause of huge areas of mangroves were destroyed Solution  The organic shrimp or shrimp aquaculture with mangrove

10. Energy and natural resource foundations About 50% of revenues from wild-caught shrimp go to fuel costs. 1 kg of wild-caught shrimp requires 2 litres of diesel fuel 1 kg of aquaculture-reared shrimp requires to 1 litre of diesel fuel 400 litres of diesel fuel per 1 kg of shrimp P. monodon gravid females brood-stock

11. Fishmeal as an ecological and ethical issue About 4 kg of fish to produce 1 kg of fishmeal. About 65% of raw shrimp is edible; other 35% is waste or by-products and may be-reused. A related ethical issue Solution!  Reducing the amount of fishmeal used  Proper fisheries management and economic incentive  Whether fish from sea as input to aquaculture is ecologically and ethically justifiable?

12. 3ECONOMIC PROFITABILITY Trade competition Expansion in overall global production Disease outbreaks Trade dumping against exporting nations Trade rules and disputes heighten competition between countries Supply rate increase much higher than increasing demand rate

13. Distribution of economic benefits How are the financial risks and benefits actually distributed? Help alleviate poverty or otherwise improve social development in producing areas? Study show that:  less of the benefit and more of the residual risks are being borne by the small producers

14. 4SOCIAL AND ECONOMIC EQUITY Economic vulnerability High profit level and quick returns; However, it is highest level of risks for example, on average, about 25- 30% of the total shrimp growers get loss, every year

15. Food security Directed toward upscale markets, export-oriented Displaced traditional fisheries, destroyed ecosystems Divert resources away from production for local consumption. Causes of salinization of agriculture land Many area of shrimp farm have been abandon after pollution and disease Block the access of poor family to the coast to earn living Solution: Ecosystem-based approach to protect the ecosystem services that are available for the poor

16. Food safety Consumers concerned about food safety and health Little attention to domestic market. Strict regulatory vs lack of capacity to enforce them Cost of chemicals/drugs accounted 20% despite growers may not know well about the usages. lack of awareness and knowledge; easy access to banned chemicals. In 2001, EU authorities detected banned antibiotics, the exports were rejected and destroyed Solution: HACCP for export, and include all major inputs building branch for local market total traceability of food products Broodstock selection

17. 5INSTITUTIONAL ARRANGEMENT Shifted from alternative, supplement to rural livelihoods to a key industry and engine of economic. Victory of U.S. shrimpers in an anti-dumping case, brought benefits to shrimpers in U.S. but reduced the bargaining power of shrimp growers in shrimp exporting countries, who have much weaker negotiating power.

18. Integrated coastal zone management little attention on value in the wetland ecosystem goods and services Trade off between ‘national’ profitable vs local livelihoods and conservation Corruption over land document Solution: Integrated approach for development of shrimp aquaculture and other activities

19. Local government and communities Thus the conflict between rich people and poor one in community High investment capital infrastructure, a joint operation, would reduced investment costs Solution: Local community engagement has often been crucial to solving diverse water and land conflicts Require a high degree of trust within the community and does not seem to be the trend in Viet Nam yet

20. Productive partnership NGOs criticized buyers get profit but facilitate the environment, socio-economic problems GAA/ACC GAA established in 1997, to advancing environmentally and socially responsible aquaculture. ACC established in 2002, to certify social, environmental and food safety standards Both GAA and ACC are supported by buyers to draw criticism from NGOs Should Consider the financial viability of smaller farm operators in view of burden of surcharge in certification expense

21. ASEAN Shrimp Alliance (ASA) ASA established 2007, to enhance the ASEAN’s capability in responding to the international trade Vietnam area increased from 224,407 ha to 592,585 ha during 2000 to 2004 Indonesia area plan to increase from 420 thousand ha in 2000 to 913 thousand ha The competition lead to selling shrimp at lower cost Should ASA join with other shrimp producing countries to set the target production for each regions, countries.

22. Vietnam Association of Seafood Exporters and Producers (VASEP) VASEP was established in 1998, efforts to raise awareness and control use of banned chemicals and antibiotics Processing plants and traders link consumer demand to shrimp growers. Shrimp growers are the small fry in the big pond Should Provide information about market opportunities and quality demands to small-scale grower

23. Growers associations The social networks of successful shrimp growers have a critical filter and editing function focuses on shrimp growers and not shrimp only integrative, livelihood- and investment- oriented, solutions

24. Certification and traceability The expansion of shrimp world production reduced the bargaining power of shrimp growers Supported by Gov policies and by multilateral agencies providing credit and technical assistance Retailers increasingly decide what gets imported, sold and consumed. Shrimp importers, retailer and food services have powerful roles in the shrimp value chain. The top ten leading United States supermarket chains have over six thousand full service seafood departments. The top ten leading U.S. seafood restaurant chains have almost three thousand outlets with annual value of sales of $5.5 billion.

25. Certification COC was an initiative launched in Thailand in 1997 based on FAO’s Code of Conduct for responsible fisheries, ISO14001 and HACCP The currently BMP certification by ACC supported by buyer, shift the certification power from producing to the importing countries.

26. Traceability traceable where shrimp fry coming from, which feed have been used and how shrimp have been transported and processed. In Vietnam need to establish of a wholesale market for raw materials

27. Standard November 17-18, 2008, WWF organizes Shrimp Aquaculture Dialogue in Bangkok aims to creating global standards for responsible shrimp.

28. 6CONCLUSION Changed from traditional, small-scale businesses into a global industry due to production technology and economic globalization. Productive partnership and larger commercial scale business owners may replace many small- scale growers or they will become more vulnerable. Go “beyond the ponds, beyond the states” Shrimp production and consumption as a system

29. Thank you for your attention!