Country Reports

Bangladesh

Goons Release Salt Water into Paddies

On May 9, 2009, shrimp farmers in Mongla, Khulna (southwest Bangladesh, the center of the country’s shrimp farming industry), hired goons (small-time gangsters) to cut an embankment of the Kainmari Canal to release saline water into a field so that it could no longer be used for traditional rice and vegetable farming and would have to be used for shrimp farming.  “The rice farmers have vowed to resist the hired goons.  So the situation in these villages has become highly tense,” said Feroze Ahmed at the Mongla Police Station.  The anti-salinity movement is gaining momentum, and farmers are now more aware of the evils of saline water-based shrimp farming.

Source: The Daily Star.  Farmers Resist Saline Water Based Shrimp Farming.  May 11, 2009.

Brazil

Assessment of Penaeus vannamei Infected with IMNV

The abstract of this study says:

Until 2002, farmed shrimp production was growing steadily in northeast Brazil, the center of the country’s shrimp farming industry.  Then an outbreak of a new virus, infectious myonecrosis (IMNV), began killing shrimp.  The aim of this study was to evaluate some hemato–immunological parameters in Penaeus vannamei during the progress of the disease.  The results suggest that the immune system of IMNV-infected shrimp respond only at a late stage of the disease, when recovery is unlikely.

Source: Aquaculture.  Immune assessment of farm-reared Penaeus vannamei shrimp naturally infected by IMNV in NE Brazil.  Andrezza M. Costa, Celso C. Buglione, Fabiana L. Bezerra, Pedro C.C. Martins and Margherita A. Barracco (barracco@mbox1.ufsc.br, Laboratório de Imunologia Aplicada à Aqüicultura, Departamento de Biologia Celular, Embriologia e Genética, Universidade Federal de Santa Catarina, SC, 88.040-900, Brasil).  Volume 291, Issues 3-4, Page 141, June 16, 2009.

India

Serotonin, Vitellogenesis and Molting

In this study, researchers investigated the effect of serotonin (5-hydroxytryptamine, 5-HT) injection on the ovarian maturation and vitellogenin levels of Penaeus indicus.  Female shrimp were tested at five different ovarian stages, during reproductive and non-reproductive molt cycles.  The results reveal a possible stimulatory role of serotonin on ovarian maturation by increasing vitellogenin levels.

Source: Aquaculture.  Serotonergic stimulation of ovarian maturation and hemolymph vitellogenin in the Indian white shrimp, Fenneropenaeus indicus.  S. Santhoshi, V. Sugumar (vasu_sugu@yahoo.co.in, Department of Oceanography and Coastal Area Studies, School of Marine Sciences, Alagappa University, Thondi Campus, Thondi 623409, Tamil Nadu, India) and N. Munuswamy.  Volume 291, Issues 3-4, Page 192, June 16, 2009.

Mexico

WAS Meeting in Veracruz, Preliminary Program

To view the preliminary shrimp farming program for the World Aquaculture Society meeting in Veracruz (September 25–29, 2009), click here.

Source: Email to Shrimp News International from Lorenzo Juarez, President of the World Aquaculture Society, on May 1, 2009.

Thailand

Contract Farming

On May 7, 2009, Thai Union Frozen Products announced a 10,000-ton contract farming arrangement with 185 shrimp farmers worth about $35 million.

Under the deal, Thai Union, a major producer and exporter of canned and frozen seafood, will buy shrimp from the farmers at specified prices based on production costs, plus a level of profit agreed on by the farmers and the company.

The contract should help farmers plan what size shrimp to produce and should cut their market risks from price fluctuations, especially between May and December, when shrimp is normally in abundant supply, said Rittirong Boonmechote, managing director of Thai Union’s shrimp business unit.  “We believe contract farming will help reduce risks for all parties involved, especially for farmers, who will not have to worry about how to sell their shrimp during periods of surplus,” he said.  “With a target of how much shrimp to produce, of what size, and at what price...the farmers will be better equipped to plan their production effectively.”

Thai Union stands to benefit from better cost management and steady supplies of raw materials, said Rittirong.  Quality control, freshness and food safety are also managed more effectively with contract farming, helping processors like Thai Union meet their customers’ expectations.

For international buyers, the scheme should ensure punctual delivery of finished products along with better quality and traceability, giving consumers more confidence in safety.  “Traceability and food safety—two issues that our foreign customers are intensely interested in—would be enhanced under the contract farming program,” said Rittirong.  The scheme will also reduce the government’s financial burden from its yearly farm price intervention schemes during periods of oversupply, he said, adding that the contract did not oblige farmers to buy shrimp feed, postlarvae or any other products from Thai Union.  Farmers can also decide how much shrimp they sell to the company under the scheme.

Thai Union currently buys about 40,000 metric tons of shrimp a year for its processing plants.

The shrimp business generated about $180 million for the company in 2008.

Thai Union forecasts that sales from its Thai and overseas operations will increase by 15% this year.

Source: Bangkok Post.  Business/TUF contracts 185 Shrimpers.  Charoen Kittikanya.  May 8, 2009.

Thailand

Asian Shrimp Farmers Fight Global Recession

During the week of May 11–15, 2009, because of the global recession, leading Asian shrimp processors and exporters met in Bangkok to discuss the possibility of managing shrimp production.

Proposed by the Thai Frozen Food Processing Association, the move followed an initiative at the Shrimp Industry Development Forum in Guangdong, China, last month, where the shrimp trade associations of China, Indonesia, Thailand and Vietnam agreed to cooperate and form what could become a shrimp industry alliance that would include shrimp farming countries from around the world.  Somsak Paneetatyasai, president of the Thai Shrimp Association, said the forum was aimed at exchanging information on production and trade and on managing supply to prevent price slumps during hard times.

Source: Bangkok Post.  Business/Marketing/Agribusiness/Closer Ties for Shrimpers Across Asia.  May 9, 2009.

United States

Florida—Darden and Bill Herzig

Darden Restaurants, one of the biggest buyers of farmed shrimp in the world, recently announced the realignment of the roles and responsibilities for two of its senior executives.

Effective immediately, Bill Herzig will assume an expanded role as Senior Vice President of Purchasing and Supply Chain Innovation at Darden.  In his new role, Herzig will lead a multi-year project to transform and automate the company’s supply chain.  The project will create new systems for connecting and sharing data with Darden’s global vendor partners.  Herzig will also assume responsibility for sustainability and public policy activities related to Darden’s supply chain, while continuing to be responsible for beverage, produce and capital equipment purchasing.  As a result of his expanded role, he will no longer have responsibility for seafood purchasing.  That responsibility has been assigned to Vice President of Seafood Purchasing Roger Bing, who will now report directly to Senior Vice President Barry Moullet.

In Herzig’s expanded role, he will also investigate and develop strategies for improving sourcing and supply management processes within Darden’s $2.5 billion supply chain.

Source: Seafood.com (an online, subscription-based, fisheries news service).  Darden reorganizes seafood purchasing, promoting Roger Bing, assigning Bill Herzig wider role.  Editor and Publisher, John Sackton (phone 1-781-861-1441, email jsackton@seafood.com).  May 8, 2009.

United States

Hawaii—No Parking for Shrimp Customers on Oahu’s North Shore

To view a one-minute video of a tourist trying to find a parking place on Oahu’s north shore so that she could buy some shrimp from one of the roadside shrimp stands, click on the link below.  The video contains some distant views of shrimp ponds.

Source: YouTube.  Kahuku Shrimp Farms.  April 30, 2009.

United States

Louisiana—James Martial Lapeyre, Laitram Inventor

In the 1940s, shrimp was peeled by hand.  In one hour, 150 experienced workers could peel 1,000 pounds.  That’s when James Martial Lapeyre, still in high school, noticed that when you step on a shrimp just right, it squirts out of its shell, so he started tinkering with rollers that would apply the right pressure every time.  He came up with a machine that could peel shrimp—and changed shrimp processing worldwide.

Laitram Machinery, the company Lapeyre started, now has five divisions, and in 2008 it had revenues of about $280 million.

Information: Jay Lapeyre (son), President, Laitram Machinery, 220 Laitram Lane, Harahan, Louisiana 70123, USA (phone 1-800-533-8253, 1-504-733-6000, fax 1-504-733-6111, email lm.sales@laitram.com, webpage http://www.laitrammachinery.com/contact.aspx).

Source: Investors.com.  Management/Leaders and Success/J.M. Lapeyre’s Buffet of Inventions Included a Shrimp-Peeling Machine.  Donna Howell.  May 5, 2009.

United States

Michigan—Seafood Systems

Russell Allen, owner of Seafood Systems, a small shrimp farm in Okemos, Michigan, is working to secure funding for a commercial indoor shrimp farm that would be able to produce a million pounds of shrimp a year at a cost of around $1.30 a pound.  At the five-million-pound level, Allen thinks he could produce shrimp at less than a dollar per pound.  “Ultimately, on a very large project, we could grow shrimp for $0.70 to $0.80 a pound,” said Allen.  He hopes to raise $10 million from venture capital investors in the next six months to get the commercial project off the ground.

“My numbers show that a viable commercial project would need at least a million pounds of production per year to get to any kind of economies of scale; five million pounds would be much better,” said Allen.

The initial capital cost to go to five million pounds immediately was too high.  “I knew I could never raise the required capital on any kind of fair terms,” he said.  “I have settled upon an initial project of one million pounds per year, with subsequent expansion to five million pounds in the next five years.”

Allen and his team have developed a feeding system that results in feed conversion ratios as low as 0.7 to 1, which Allen says is “better than any other farmed animal....”  The company says it can use feeds with little or no fish meal, and its energy costs per pound of shrimp produced are on a par with typical outdoor farmed shrimp.  “The system has been almost totally automated, very little labor needed during production,” he said, adding the one area still being worked on is what Allen calls a “usable” shrimp de-heading machine because “on a commercial scale, a de-heading machine is essential to keep processing costs in line.”

Information: Russell Allen, President, Seafood Systems, Inc., 3450 Meridian Road, Okemos, Michigan 48863, USA (phone 1-517-347-5537, email shrimpone@aol.com).

Source: The Wave (an online, subscription-based news service published by IntraFish Media, Norway).  Editorial Director, John Fiorillo (phone 1-206-282-3474, extension 25, cell 1-206-963-5732, fax 1-206-282-3470, email john.fiorillo@intrafish.com).  Amer-I-can.  Ben DiPietro (ben.dipietro@intrafish.com).  May 11, 2009.

United States

South Carolina—Job, Manager at a Marine Fish and Shrimp Lab

The South Carolina Department of Natural Resources has a position open for an Aquaculture Water Quality Analyst, at a laboratory in Bluffton, South Carolina.

Salary: $34,218.

Closing Date: June 10, 2009.

Qualifications: A master’s degree in environmental science, chemistry, biology, or a related field; or a bachelor’s degree in environmental science, chemistry, biology, or a related field and two years of experience in shrimp mariculture.  Must have demonstrated experience in relevant laboratory methods and in the organization and management of a research-oriented laboratory.  Must be qualified to work immediately in the USA.

Description: Manage a laboratory that supports moderately complex finfish and marine shrimp aquaculture research projects.  Supervise others in conducting a variety of routine water quality analyses, including chemical, biological, and physical measurements.  Design, evaluate and implement new methodologies in support of research projects.  Compile and report experimental data daily and collaborate on statistical analysis of data for inclusion in reports and publications.  Organizes efforts to ensure that all analyses for multiple projects are completed and reported on schedule.  Take lead in investigating and incorporating new technologies to improve workflow and data communication.  Maintain all laboratory equipment and facilities and purchase laboratory related supplies and equipment.

This is a laboratory position, but will also involve limited outdoor sampling in support of research projects and aquaculture related activities.

Information: John Leffler (email efflerj@dnr.sc.gov).  Candidates must apply at http://www.jobs.sc.gov.

Source: AquaNic (The Aquaculture Network Information Center, a gateway to the world’s electronic aquaculture resources).  Jobs Directory in cooperation with the WAS Employment Service.  Search jobs.  Aquaculture Water Quality Analyst (http://aquanic.org/jobs/jobinfo.asp?jobid=3152).  Posted May 19, 2009.

United States

Washington DC—FDA to Get Big Budget Hike

On May 7, 2009, President Barack Obama proposed a $3.2 billion budget for the USA Food and Drug Administration in fiscal 2010—the largest budget in the agency’s history and a $511 million increase from fiscal 2009.

The proposed budget includes more than $1 billion to improve food safety, a $259 million increase from fiscal 2009.

The budget also includes $75 million to register food facilities and increase food inspections and $19 million for inspection and export certification.  The fees would allow the FDA to boost its number of food inspectors by about 20 percent in fiscal 2010, which begins on October 1, 2009.  The agency currently employs 1,022 food inspectors.

Source: SeafoodSource.com.  Editor Steven Hedlund (shedlune@divcom.com).  FDA budget hike would be largest ever.  May 8, 2009.

United States

Washington DC—President Obama, Food Safety

If passed, the USA Food and Drug Administration (FDA) Globalization Act, introduced in the House of Representatives, would expand the FDA’s authority to certify foreign food facilities, establish means to guarantee that food products meet USA law and require testing by FDA-approved third-party certifiers.

A similar bill introduced in the Senate, the FDA Food Safety Modernization Act, is less sweeping in some respects, but has a global scope that includes enhanced reporting, certification and labeling.

If some version of this legislation becomes law, seafood suppliers and processors exporting to the United States could face ongoing re-registration requirements annually or every two years.

The proposals would provide USA enforcement officials greater access to foreign plants, facilities and records to ensure compliance with USA food safety laws.  Penalties for violations of those laws would be stiffened, while opportunities to run afoul of labeling requirements could increase.

For instance, the scope of what constitutes punishable “misbranding” would expand to include, among other things, the following:

• Food manufactured, processed, packed or held in a facility not properly registered

• Imported food for which a proper certification of compliance with FDA requirements has not been provided

• Processed food for which country of origin labeling fails to correctly identify the country of final processing or for which the manufacturer’s website fails to disclose the country of origin for each ingredient

 • Non-processed food for which labeling fails to properly identify the country of origin.

Adding to heightened liability exposure are provisions that would require those in the supply chain to report suspicious practices to USA authorities.

Another bill, The Commercial Seafood Consumer Protection Act, aims to foster cooperation between the Commerce Department and other agencies on seafood import inspections, while increasing the number of testing facilities and inspection teams that travel abroad.

Still another bill would provide explicit authority to the government to reject seafood shipments that do not meet food safety requirements under USA law and to publicize those rejections.

These bills could be incorporated into one or more comprehensive bills.

Chances of passage of some type of reform package are high.  Despite a crowded domestic and foreign agenda, Obama raised the food safety issue in a March 15, 2009, radio address to the nation about the creation of a Food Safety Working Group that includes cabinet secretaries and senior officials to advise him on reform issues.

A Democrat-controlled Congress makes passage of food safety law reform a high possibility over the next two years.

Sarah Roller, who chairs the food and drug law practice at Kelley Drye and Warren, a New York law firm that focuses on fisheries and seafood-related issues, notes a shifting regulatory trend.  “These bills signal the beginnings of the paradigm shift that is already underway in the way we regulate food safety in the United States,” she said.

The liability schemes likely to be created “will increase the need for food companies to have strong legal risk management strategies in place so that they are equipped to weather the increased regulatory compliance and commercial liability risks that will result,” Roller said.

Source: The Wave (an online, subscription-based news service published by IntraFish Media, Norway).  Editorial Director, John Fiorillo (phone 1-206-282-3474, extension 25, cell 1-206-963-5732, fax 1-206-282-3470, email john.fiorillo@intrafish.com).  U.S. Congress, Obama increase focus on food safety.  David Frulla and Shawn Gehan (Washington, DC-based attorneys with Kelley Drye & Warren, LLP).  May 7, 2009.

United States

Washington State—Costco Sued for Short-Weighted Shrimp

The attorney for a New York man suing club-store operator Costco for allegedly selling short-weighted shrimp rings is asking the court to issue a temporary injunction against the company to stop it from selling short-weighted shrimp.

The injunction, filed April 19, 2009, in USA District Court in New York City, asks the court to require Costco to stop selling 16-ounce shrimp rings unless the product contains 16 ounces of shrimp or a label saying how much shrimp is included, William Weinstein, attorney for plaintiff Marc Verzani, said.

Verzani sued Costco on March 9, 2009, alleging the retailer sells its “Shrimp Tray with Cocktail Sauce” for $9.99 in all of its more than 400 warehouse stores across the United States with a standard label affixed to a standard container that describes the net weight of the shrimp included therein at one pound.

However, based on the investigation of counsel over a period now exceeding nine months, the shrimp contents are never individually weighed, and the actual weight of the shrimp is never disclosed.  The actual weight of the shrimp is always less than a pound, and in many (or most) instances, the shrimp are two to three ounces short of a pound, the lawsuit alleges.

Source: The Wave (an online, subscription-based news service published by IntraFish Media, Norway).  Editorial Director, John Fiorillo (phone 1-206-282-3474, extension 25, cell 1-206-963-5732, fax 1-206-282-3470, email john.fiorillo@intrafish.com).  Injunction sought in Costco short-weight shrimp lawsuit.  Ben DiPietro (ben.dipietro@intrafish.com).  May 6, 2009.

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