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Evaluation of the Impact of the Indian Ocean Tsunami and US Anti-Dumping Duties on the Shrimp Farming Sector of South and South-East Asia

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Evaluation of the Impact of the Indian Ocean Tsunami and US Anti-Dumping Duties on the Shrimp Farming Sector of South and South-East Asia Network of Aquaculture Centres in Asia-Pacific Evaluation of the impact of the Indian Ocean tsunami and US anti-dumping duties on the shrimp farming sector of South and South-East Asia Case studies in Vietnam, Indonesia and Bangladesh Prepared by NACA in collaboration with: Can Tho University (Vietnam) Department of Marine Affairs and Fisheries (Indonesia) PMTC Bangladesh Ltd (Bangladesh) October 2006 First version posted on 6th November 2006 Revised version posted on 29th November 2006 i Acknowledgements We wish to thank all the people who supported the implementation of this study, especially the farmers, traders, processors and exporters in Vietnam, Indonesia and Bangladesh for sharing information during the surveys and local and national authorities in the 3 case countries for providing assistance and information throughout the study. We would like to thank also the staff of the USAID-funded ATDP Shrimp Seal of Quality project for sharing pricing data and information. We are also grateful to the people providing feedback to the study team during the finalization of the report. ii TABLE OF CONTENTS Executive summary .............................................................................................1 Abbreviations ......................................................................................................4 1. General Introduction .......................................................................................5 1.1. A rapidly growing sector..............................................................................5 1.2. Threats to the sustainability of the shrimp farming sector ...........................6 1.3. Facing unexpected challenges .....................................................................7 The introduction of anti-dumping duties....................................................................7 The Indian Ocean tsunami ......................................................................................9 Objectives of the study......................................................................................10 2. General Methodology.....................................................................................11 2.1. Partners ....................................................................................................11 2.2. Country Comparisons.................................................................................11 2.3. Study sites ................................................................................................11 2.4. Data collection and analysis.......................................................................12 2.5. Comparative analysis.................................................................................13 2.6. Time schedule ...........................................................................................14 3. Vietnam case study .......................................................................................15 Executive Summary..........................................................................................15 3.1. Introduction ..............................................................................................17 3.2. Methodology..............................................................................................18 3.3. Results and discussion...............................................................................19 3.3.1. Socio-economic characteristics of the stakeholders..........................................19 3.3.2. Volume changes of commodities traded.........................................................21 3.3.3. Changes taking place between 2004 and 2005 ...............................................22 3.3.4. Shrimp price trend analysis .........................................................................24 3.3.5. Supply chain analysis..................................................................................29 3.3.6. Impact of tsunami and US anti-dumping or other events..................................32 3.3.7. Additional secondary information..................................................................33 3.4. Conclusions and recommendations ............................................................34 4. Indonesia case study.....................................................................................35 Executive Summary..........................................................................................35 4.1. Introduction ..............................................................................................37 4.2. Methodology..............................................................................................38 4.3. Results and Discussion ..............................................................................40 4.3.1. Socio-economic characteristics of the stakeholders..........................................40 4.3.2. Volume changes of commodities traded.........................................................41 4.3.3. Changes taking place between 2004 and 2005 ...............................................42 4.3.4. Shrimp price trend analysis .........................................................................43 4.3.5. Supply Chain Analysis .................................................................................48 4.3.6. Impact of Tsunami and US Anti- Dumping or other events ...............................49 4.3.7. Additional secondary information..................................................................49 4.4. Conclusions and recommendations ............................................................51 5. Bangladesh case study ..................................................................................53 Executive Summary..........................................................................................53 iii 5.1. Introduction ..............................................................................................55 5.2. Methodology..............................................................................................56 5.3. Results and Discussion ..............................................................................57 5.3.1. Socio-economic characteristics of the stakeholders..........................................57 5.3.2. Volume changes of commodities traded.........................................................58 5.3.3 Changes taking place between 2004 and 2005 ................................................61 5.3.4. Shrimp price trend analysis .........................................................................61 5.3.5. Supply Chain Analysis .................................................................................68 5.3.6. Impact of Tsunami and US Anti-Dumping or other events ................................70 5.4. Conclusions and recommendations ............................................................70 6. Comparative analysis of impact of US anti-dumping, tsunami on the shrimp price trends and livelihoods...............................................................................71 6.1. Role of events............................................................................................71 6.2. Price trends ...............................................................................................71 6.3. Volume traded ...........................................................................................77 7. Conclusions and recommendations................................................................78 References.........................................................................................................81 Annexes.............................................................................................................84 Annexes for Vietnam case study .......................................................................84 Annex 1. Samples and locations for the study..........................................................84 Annex 2. List of interviewed farmers ......................................................................84 Annex 3. List of interviewed traders .......................................................................86 Annex 4. List of interviewed processors ..................................................................87 Annex 5. Socio-economic indicators of the sampled stakeholders ...............................88 Annex 6. Investment made in shrimp farming .........................................................89 Annex 7. Volume of shrimp traded 2003-2005.........................................................89 Annex 8. Perception of changes in shrimp farming ...................................................90 Annex 9. Per hectare shrimp farming variable cost and their percentages ....................91 Annex 10. Monthly average sale prices for farmers for different sizes..........................91 Annex 11. Monthly average procurement prices for middlemen for different sizes .........92 Annex 12. Monthly average procurement prices for processor for different sizes ...........93 Annex 13. The incentives received and given by different groups of stakeholders .........94 Annex 14. Perception of the stakeholders on the unusual events in 2004.....................95 Annex 15. Impacts of the US anti-dumping in 2004..................................................95 Annex 16. Solutions to mitigate the impacts of the US anti-dumping...........................95 Annexes for Indonesia case study ....................................................................97
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