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Friday, October 12, 2007

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Economic Assessment of Shrimp Farming
 in Queensland, Australia

 

Farm Details
Ponded Area (hectares)
30
Production (metric tons)
176
Average Yield (kgs/ha)
5,875
Stocking Rate (pls/m2)
32
Survivals (%)
65
Feed Conversion Ratio
1.9
Average Size (grams)
30
Feed Prices ($/ton)*
1,509
Capital Value (millions of $)*
3.46
Grade Sizes %
31/40s
4
21/30s
15
16/20s
40
10/15s
35
Under 15
6
Market %
Raw Frozen (10kg)
24
Cooked (10kg)
45
Cooked Frozen (10kg)
23
Cooked Frozen (5kg)
8
Farm Gate Prices ($ Per Kilo*)
31/40s
7.90
21/30s
11.54
16/20s
13.10
10/15s
14.65
Under 15
15.98
Labor
Casual (hours/year)
3,750
Permanent Skilled
1.3
Permanent Unskilled
4.0
Manager
1.0
Cost Structure  ($ Per Kilo*)
Postlarvae
0.80
Feed
2.84
Labor
2.04
Processing/Shipping
1.33
Electricity
1.07
Repairs and Maintenance
0.53
Other
0.53
Capital
2.13
Average Return
$12.43*
Total Costs
$11.28*
Net Return
$1.15*
Rate of Return
15.3%
*USA dollars

In this economic assessment of shrimp farming in the state of Queensland, four shrimp farms between Cardwell and the Logan River supplied data on their production and costs for the summer harvest (December through February) of 2006-2007.  The information was analyzed using “PrawnProfit”, a program developed by Bill Johnson.  Yields ranged from four to eight tons per hectare.  Farms had between 25 and 35 hectares of growout ponds.

 

The information was averaged and then standardized to reflect a 30-hectare farm.  The information in the table summarizes the group average figures, which include costs associated with processing and frozen storage, both of which are essential for farms to market high quality product over a large part of the year, rather than accepting generally lower market prices during the peak harvest period.

 

The results of the analysis indicated that the average return for shrimp farming in 2006-2007 was $12.44 per kilo.  This price could only be achieved with good quality shrimp that were marketed over at least six months of the year.

 

Total costs were $11.28 per kilo, allowing for a profit of $1.16 per kilo.  Feed represented over 25% of total production costs, and labor and capital costs averaged nearly 19% each.

 

The profit level was found to be very sensitive to changes in yields and grade sizes.  Farms that produced less than 4,500 kilos per hectare lost money, while farms that exceeded 6,500 kilos per hectare could be expected to have a $1.78 per kilo profit margin.

 

Source: Queensland Aquaculture News.  Editors, Ross Lobegeiger and Max Wingfield.  Queensland’s Department of Primary Industries and Fisheries (Bribie Island Aquaculture Research Centre, P.O. Box 2066, Woorim, Queensland 4507, Australia, phone 07-3400-2040, fax 07-3408-3535).  Prawn farming economics.  Ross Lobegeiger.  Page 9, Issue 30, September 2007.

 

 

“Time Bombs for Seafood Importers”

John Sackton, Seafood.com

 

On September 27, 2007, President Bush signed into law the Food and Product Responsibility Act of 2007, basically a sweeping FDA reform bill aimed at protecting consumers from unsafe food and promoting sound business practices among distributors.  It calls for stricter inspections of imported aquaculture and seafood products.

 

On September 24, 2007, John Sackton, editor and publisher of Seafood.com, reported: “Most of the 424-page bill addresses drug regulation, but there are a couple of time bombs for seafood importers that have been lobbied into the bill by those segments of the industry campaigning against seafood imports.”

 

Sackton’s report says:

 

Recently, in Louisiana, Piazza Seafood won a court battle to prevent Agricultural commissioner Bob Odom from imposing arbitrary inspection requirements on imported seafood.  Not only were the inspections costly for importers, but Odom also wanted to destroy products that were not in compliance with state regulations.  A court ruled that under Louisiana state law, the agriculture commissioner did not have the authority to conduct health tests, and that only the Louisiana Department of Public Health could do that.  The new FDA bill overturns that court decision.  It instructs the FDA to enter into partnership agreements with states to implement their own aquaculture and seafood import inspections!

 

This means that Congress has enhanced the power of states to conduct local inspections of seafood products such as shrimp and catfish regardless of whether these products were inspected upon entry or not.  Further, unlike products inspected on entry, any product not in compliance with a state inspection would probably not be saleable and would have to be destroyed rather than reexported.

 

A second provision in the bill calls for a full report to Congress within 180 days on the specifics of an enhanced aquaculture and seafood inspection program, that “describes the feasibility of developing a traceability system for all catfish and seafood products, both domestic and imported, for the purpose of identifying the processing plant of origin of such products.”  The required report also has to provide an assessment of risks “associated with particular contaminants and banned substances”.

 

The bill sets up a study of the impact of genetically modified fish on wild stocks, which appears to be aimed at heading off an FDA approval of Aqua Bounty Technologies’ (below, United States) high growth salmon, which under past practice by the FDA would likely be seen as safe for consumption.

 

The legislation would require seafood and other food distributors to cover the costs of a product recall and personal/property damages that may occur from a defective product.  The bill would also require USA Customs and Border Protection, in conjunction with other agencies, to develop a program to ensure that distributors have product-recall and liability insurance or have the financial resources to cover a recall or damage claim.

 

The legislation gives the Secretary of Agriculture the authority to conduct recalls of meat, poultry, eggs and other products and the Food and Drug Administration the authority to conduct recalls of the products it regulates, like seafood and shrimp.

 

Sources: 1. Seafood.com (an online, subscription-based, fisheries news service).  Some seafood import time bombs put into just passed FDA bill.  Editor and Publisher, John Sackton (phone 781-861-1441, email jsackton@seafood.com).  September 24, 2007.  2. Seafood Currents (an online newsletter from Seafood Business, www.seafoodbusiness.com).  Bill would require product recall, damage coverage (http://divcom-seafood.informz.net/admin31/content/template.asp?sid=4593&ptid=133&brandid=3138&uid=752859429&mi=191362).  Seafood Business Staff.  September 24, 2007.

 

 

Country Reports

 

Australia

New Rules

 

On September 30, 2007, the Federal Government’s restrictions on imported shrimp were scheduled to become law.  All imported raw shrimp will be banned while other shrimp products will be subjected to increased testing for diseases that could affect the commercial shrimp fishery or the shrimp farming industry.  Australia is expected to experience shrimp shortages as a consequence of the new restrictions.  Cooked shrimp—40 percent of total shrimp imports—won’t be affected.

 

The Seafood Importers Association of Australia (SIAA), opposed to the import ban, is predicting the cost to the Australian foodservice business will be approximately $444 million annually.  SIAA has accused the Government of introducing the bans as a way of appeasing the fishing industry, which has seen its fishing zones reduced by Government conservation strategies.  SIAA is responding with an information campaign and is sending a group of high-end chefs to Thailand to examine shrimp farming practices.  The shrimp shortfall cannot be replaced by Australian shrimp production because the shrimp fishing industry is at the limit of sustainable production and because Australian shrimp farms only meet around five percent of the demand for shrimp.

 

Source: FisheNews (an email supplement to Austasia Aquaculture magazine, www.austasiaaquaculture.com.au).  Editor, Tim Walker (austasiaaquaculture@netspace.net.au).  Prawns/Imported Prawn Issues.  September 28, 2007.

 

Belize

Laughing Bird Fresh Shrimp

 

CleanFish, a San Francisco-based sustainable seafood company, introduces Laughing Bird Caribbean White Shrimp, fresh shrimp from a family-owned, eco-friendly farm in Belize.  A CleanFish news release says, “When the shrimp in your mouth has never been frozen, treated with preservatives or water-retaining additives, you can taste its true character.”

 

Laughing Bird Caribbean White Shrimp is farmed with attention to the health of the animal, the environment and the people who consume it.  It comes from a closed-loop aquaculture system that sets the global standard for farmed shrimp in terms of land use, water reuse, lined ponds and stocks of highly monitored, healthy shrimp.

 

CleanFish sources and promotes top quality seafood that is safe and sustainable.  As a national fish brokerage and branding service, CleanFish functions as a market champion for small-scale fishermen and artisanal fish farmers, bringing wild-caught and sustainable farmed fish to restaurants, retailers and seafood distributors who form the CleanFish Alliance for Sustainable Seafood.

 

Information: Tim O’Shea, Founder and CEO, CleanFish, 42 Decatur Street, San Francisco, CA 94103 USA (phone 415-626-3500, fax 415-626-2505, webpage http://www.cleanfish.com/contact.php).

 

Sources: 1. PR Newswire.com.  New Laughing Bird Caribbean White Shrimp From CleanFish is the Sweet Future of Aquaculture (http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/10-01-2007/0004673270&EDATE=).  October 1, 2007.  2. Telephone conversation with Tim O’Shea on October 4, 2007.

 

India

Falling Dollar Hurts Shrimp Exporters

 

Many shrimp farmers in Andhra Pradesh, the east coast state that produces most of India’s farmed shrimp, have quit the business because the prices offered by processors are so low that shrimp farmers can no longer make a profit.  In the past, the state accounted for 75,464 tons of India’s total farmed shrimp production of 144,347 tons.  With the rupee appreciating by more than 11% in 2007, Indian shrimp becomes more expensive (less competitive) in international (dollar) markets.

 

“Many farmers in Nellore, the largest shrimp farming district within Andhra Pradesh, are no longer farming as there are very few takers for their produce at reasonably good prices,” said Zabir Khan, secretary of the Nellore District Prawn Farmers Welfare Association.  “In the early 1980s, Nellore became the largest farming district in Andhra Pradesh with an annual production of around 12,000 tons,” Khan said.  “But the situation is different now.  The farmers have begun giving up shrimp farming and in the next season, production will drop down to 4,000 tons.”

 

Source: LiveMint.com.  Marine exports may miss target as rupee rises against dollar (http://www.livemint.com/2007/09/26004824/Marine-exports-may-miss-target.html).  Ajayan.  September 26, 2007.

 

Mexico

USA Farm in Mexico

 

NaturalShrimp International, which operates a small, greenhouse-enclosed shrimp farm in Texas, will invest $4.5 million in a brand new shrimp farm in Cuernavaca (south of Mexico City), Morelos, Mexico.  NaturalShrimp will purchase 3,000 hectares of ponds and expects to produce close to 5,000 metric tons of shrimp annually starting in January 2008.

 

Carlos Ordoñes, president for the Texan company in Mexico, said the product, which will be 100% natural, would be sold primarily in the state of Morelos and in Mexico City.

 

Source: Seafood.com (an online, subscription-based, fisheries news service).  Translated by Angel Rubio Canas.  Texas company to invest $4.5 million in building new shrimp farm in Morelos, Mexico.  Editor and Publisher, John Sackton (phone 781-861-1441, email jsackton@seafood.com).  September 25, 2007.

 

New Zealand

Where They Eat Their Heads

 

Pat Churchill, a New Zealand food writer now living in Australia, reports.  “A couple of years ago I had dinner at a teppanyaki restaurant [Japanese cuisine cooked on an iron grill].  The chef put on the usual pyrotechnic display of impeccable implement control.  As we enjoyed our shrimp, he asked if we would like the heads.  Game to try anything once, we nodded yes and he was soon flattening them on the hotplate, squeezing them till the juices ran, turning them over and crisping them up.  He delivered the sizzling hot delicacies and we were really blown away by them.  They were crunchy and delicious and totally full of flavor—a bit like the crustacean version of crackling [pork rind produced by frying or roasting].”

 

Source: Stuff.com.  Using the whole prawn (http://www.stuff.co.nz/stuff/4216993a7773.html).  September 27, 2007.

 

Out There

Vibrio Problem

 

I have Penaeus vannamei in a three-phase earthen system.  They have some kind of Vibrio infection that leaves them disoriented, unable to eat, and, at night, we find moribund shrimp swimming at the edges of the pond.  Their intestinal tracts are sometimes reddish and empty.  I have applied lime and dichloro, but have not been able to eliminate the problem.  Could the Vibrio have survived in oysters or other animals that did not get eliminated by my treatment?  I also noticed that small crabs were dying in our water channels.  Antibiotics seem to be out of the question because it would cost too much to add them to the water and application to the feed would not eliminate the vector.  Can anyone out there help me?

 

Source: The Shrimp List (a mailing list for shrimp farmers, “shrimp-subscribe@yahoogroups.com”).  Subject: [shrimp] vibrio.  From: Fernando Tude (ftscience@yahoo.com).  September 26, 2007.

 

Saudi Arabia/Dubai

National Prawn Company

 

National Prawn Company (NPC), a huge shrimp farm on the Red Sea, will display its products at Sea Food Expo 2007 (Crowne Plaza Hotel, Dubai, October 29-31, 2007), the Middle East’s first exhibition dedicated to the seafood industry.

 

The fully integrated farm (hatchery, processing and marketing), located south of Jeddah, was built at a cost of more than $350 million.

 

The company exports more than 13,000 tons of shrimp every year to more than 30 countries.  NPC has recently commenced the construction of its second phase, which will significantly increase annual production to more than 45,000 tons of shrimp a year.  This would make NPC the single largest supplier of shrimp in the world.

 

Egypt is currently NPC’s largest shrimp customer in the Middle East with imports of approximately 1,000 tons a year.  NPC is poised to further its position in the region by targeting high-growth areas such as Dubai, where the seafood market is valued at $200 million and continues to grow at an accelerated rate.

 

Source: Business Intelligence Middle East.  National Prawn Co, the world’s largest desert aquaculture project, to debut at Sea Food Expo 2007 (http://www.bi-me.com/main.php?id=13566&t=1&c=33&cg=4).  September 30, 2007.

 

United States

Florida—Indian River Aquaculture, Up for Auction

 

Indian River Aquaculture, a greenhouse, shrimp farm in Vero Beach, Florida, will be put up for auction on Saturday morning, October 13, 2007.  Don Schumann, owner of Indian River, says the farm has 20 greenhouses, a hatchery, a lab and a packing facility (with grader and ice machine).  Seventeen of the greenhouses are ready for stocking, and the materials for refurbishing the remaining three greenhouse are available on site.

 

If you can’t attend the auction, you can tour the farm in advance and make a telephone bid on the day of the auction.

 

Information: Don Schumann, Indian River Aquaculture (phone 772-532-6166, email dschu91733@aol.com).

 

Information: Steve Rennick, Rennick Real Estate Auctions (phone 772-567-0054).

 

Sources: 1. Email to Shrimp News International from Don Schumann on October 10, 2007.  2. Telephone conversation with Don Schumann on October 10. 2007.

 

United States

Florida—Wanted: Shrimp Papers

 

John Cooksey, conference manager for the World Aquaculture Society, reports: “Due to a scheduling opportunity, we can add additional shrimp talks to the program for Aquaculture America 2008 in Orlando (February 9-12, 2008).  Therefore, we can accept more abstracts for talks relating to shrimp.  Please submit them online as soon as possible as these new openings will fill up fast.”

 

Information: John Cooksey, World Aquaculture Conference Management, P.O. Box 2302, Valley Center, CA 92082 USA (phone 760-751-5005, fax 760-751-5003, email worldaqua@aol.com, webpage  http://www.was.org)

 

Source: Email to Shrimp News International from John Cooksey on October 11, 2007.

United States

Massachusetts—Aqua Bounty Technologies, First Half 2007 Financial Report

 

Aqua Bounty Technologies, Inc., a biotechnology company that sells an immunostimulant to shrimp feed companies, said its first-half net loss narrowed, mainly due to lower expenses.  Aqua Bounty said its net loss for the six months to June 30, 2007, narrowed to $3.03 million from $5.82 million, as R&D expenses fell to $1.33 million from $2.25 million, and general and administrative expenses declined to $1.87 million from $2.9 million.

 

Product revenues increased from $50,037 to $275,189.  Sales of Shrimp IMS increased almost four times over the comparable period last year.  Almost all sales were in Mexico and Ecuador, but Aqua Bounty added that it is making solid progress with its ongoing shrimp trials around the world.

 

Source: Hemscott.com.  Aqua Bounty Technologies H1 loss narrows on lower expenses (http://www.hemscott.com/news/latest-news/item.do?newsId=50912542355382).  September 27, 2007.

 

United States

Virginia—Job—Shrimp Hatchery Technician

 

Blue Ridge Aquaculture has a position open for a shrimp hatchery technician.

 

Salary: Dependent on experience and education.

 

Closing Date: October 31, 2007.

 

Qualifications: A science degree from a four-year college is preferred, but people from technical colleges and those with high school diplomas will also be considered.

 

Experience: Shrimp hatchery experience preferred; experience in diatom culture a plus.

 

Requirements: USA citizenship, or legally able to work in the USA a must!

 

Job Description: Assist hatchery manager in all aspects of shrimp hatchery production including: broodstock maturation and spawning, postlarval shrimp production and live food production.

 

Information: Todd Blacher (todd@blueridgeaquaculture.com).  Send resume and cover letter by email—no phone calls.

 

Source: AquaNic (The Aquaculture Network Information Center, a gateway to the world’s electronic aquaculture resources, http://aquanic.org/index.htm).  Jobs Directory (http://www.aquanic.org/Text/job_serv.htm) In cooperation with the WAS Employment Service.  Search jobs (http://aquanic.org/jobs/search.asp).  Shrimp Hatchery Technician (http://aquanic.org/jobs/jobinfo.asp?jobid=2602).  Posted October 10. 2007.

 

United States

Washington State—Aquaculture Certification Council

 

During the past three months, the number of inquiries received by the Aquaculture Certification Council on its certification programs for shrimp farms has increased significantly.  To date, ACC has certified 43 farms worldwide that produce more than 70,000 metric tons of whole shrimp a year.  An additional 14 farms are being inspected or are undergoing corrective actions that will qualify them for certification.

 

Recently certified farms include one of Zhanjiang Guolian’s farms in China that produces over 25,000 metric tons of shrimp a year.  Zhangiang Guolian is a fully integrated group with a Best Aquaculture Practices (BAP) certified hatchery, farm and processing plant.

 

In Thailand, two new groups recently received ACC certification for their farms and processing plants:

 

1. The combination of Thai Royal Frozen Food Co.’s Nakornpong Farm and Thai Royal’s processing plant in Muang, Samutsakhon, Thailand.

 

2. The Charoen Pokphand Foods Public Company’s Sawee 1 and Sawee 2 farms and associated processing plants in Mahachai and Kiang, Rayong, Thailand.

 

Information: William R. More, Aquaculture Certification Council, Inc., 12815 72nd Avenue NE, Kirkland, WA 98034 USA (phone 425-825-7935, fax 425-650-3001, cell 206-321-0795, email wrmore@comcast.net, website www.aquaculturecertification.org).

 

Source: The Global Aquaculture Advocate (http://www.gaalliance.org).  Editor, Darryl Jory (dejry2525@aol.com).  Demand for BAP Certification Continues Rise.  Volume 10, Issue 5, Page 36, September/October 2007.

 

United States

Washington, DC—A Spoof, Entirely Fictitious

 

On September 30, 2007, Vice President Dick Cheney said during a question and answer session that the rumors were true: He did in fact drink live “Sea Monkeys” (brine shrimp) from his aquarium.

 

“People need to understand something,” said an agitated Cheney.  “Sea Monkeys are tiny, insignificant crustaceans, and the fact that I occasionally swallow colonies of them will in no way affect my ability to lead this country into the future.”

 

When asked why he took so much pleasure in devouring the tiny creatures, he responded, “To be honest, I feel like Jesus Christ when I drink them.”

 

Animal rights activists were outraged by Cheney’s confession, and called on him to drink something else when he was thirsty.

 

“Why can’t he drink Loganberry like the rest of us, or orange drink?” asked one protester.  “Does anybody even know how much it’s costing the taxpayers to keep this maniac supplied with Sea Monkeys?”

 

A Cheney aide insisted that the benefits of the Vice President drinking Sea Monkeys, which are actually cleverly marketed brine shrimp fetuses, outweighed the cost to USA taxpayers.  “I can tell you from experience, Dick does some of his most rigid thinking after he’s consumed the animals.  Do you honestly believe someone could craft anything as masterful as the Iraqi invasion without being drunk on the lives of thousands of tiny sentient [capable of responding emotionally rather than intellectually] beings?”

 

When asked how this whole disgraceful charade had begun, Cheney explained: “Some weeks ago I woke up in the middle of the night and went for my glass of water, but I mistakenly took hold of my Deluxe Micro-View, Ocean Zoo Aquarium and drank it down.  Instantly, the sensation of living things sliding down my throat exhilarated me, so we did a feasibility study and decided that it would be in the country’s best interests if I continued to drink them.”

 

When asked about the Vice President’s disturbing confession, General Petraeus had this to say: “Let me just say that this is not the decision I would make, and we’re still not sure how this will affect the Government’s relationship with Tribal Council leaders whose people may or may not worship these animals.  I can say with some regret that for a period of my life, I was compelled to chew the shells off of turtles, so I can understand what Dick must be going through.”

 

Source: The Spoof!  Cheney Admits to Drinking Micro-View Ocean Zoo Aquarium Full of Sea Monkeys (http://www.thespoof.com/news/spoof.cfm?headline=s2i25239).  UncleNick.  September 30, 2007.

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