Shrimp Farming and the Environment Can Shrimp Farming Be Undertaken Sustainably? A discussion paper designed to assist in the development of sustainable shrimp aquaculture CONTENTS EXECUTIVE SUMMARY ........................................................................................................................ IV CURRENT STATUS AND POTENTIAL OF SHRIMP FARMING............................................................................ IV SHRIMP FARMING SYSTEMS AND INTENSITY............................................................................................... IV ENVIRONMENTAL IMPACTS ......................................................................................................................... V SOCIAL IMPACTS ........................................................................................................................................ VI FINANCIAL RISK ......................................................................................................................................... VI PLANNING AND MANAGEMENT OF THE SECTOR......................................................................................... VII PLANNING AND MANAGEMENT OF INDIVIDUAL PROJECTS ......................................................................... VII CAN SHRIMP FARMING BE UNDERTAKEN SUSTAINABLY? ......................................................................... VIII FURTHER ACTIONS ................................................................................................................................... VIII ABBREVIATIONS AND ACRONYMS COMMONLY USED IN THE INDUSTRY......................... IX PREFACE .....................................................................................................................................................X ORGANIZATION OF THE REPORT .................................................................................................... XI CHAPTER 1: THE DEVELOPMENT AND CURRENT STATUS OF SHRIMP AQUACULTURE... ........................................................................................................................................................................ 1 IS SUSTAINABLE SHRIMP FARMING POSSIBLE?............................................................................................. 1 DEVELOPMENT OF SHRIMP AQUACULTURE ................................................................................................. 3 THE WORLD BANK AND THE SHRIMP FARMING INDUSTRY.......................................................................... 4 CURRENT STATUS OF THE INDUSTRY........................................................................................................... 6 MARKETS.................................................................................................................................................... 8 FUTURE OUTLOOK....................................................................................................................................... 9 SUMMARY AND CONCLUSION...................................................................................................................... 9 CHAPTER 2: SHRIMP FARMING SYSTEMS ..................................................................................... 10 HATCHERIES ............................................................................................................................................. 10 NURSERIES................................................................................................................................................ 13 GROW-OUT PHASE..................................................................................................................................... 13 MODELS OF SHRIMP FARMS....................................................................................................................... 14 SCALE ....................................................................................................................................................... 18 SUMMARY AND CONCLUSIONS .................................................................................................................. 18 CHAPTER 3: ENVIRONMENTAL IMPACTS OF SHRIMP AQUACULTURE .............................. 20 DESTRUCTION OF NATURAL HABITAT ....................................................................................................... 20 CONTAMINATION AND SALINIZATION OF GROUNDWATER......................................................................... 23 ORGANIC MATTER AND NUTRIENT POLLUTION.......................................................................................... 24 CHEMICALS............................................................................................................................................... 27 DISEASE.................................................................................................................................................... 29 HARVEST OF BROODSTOCK AND WILD POST-LARVAE................................................................................ 33 INTRODUCTION OF EXOTIC SPECIES........................................................................................................... 33 ABANDONMENT OF PONDS ........................................................................................................................ 33 THE USE OF FISHMEAL IN SHRIMP FEEDS ................................................................................................... 34 CONCLUSIONS AND RECOMMENDATIONS .................................................................................................. 35 CHAPTER 4: SOCIAL AND ECONOMIC IMPACTS OF SHRIMP FARMING.............................. 39 IMPACTS ON FISHERIES.............................................................................................................................. 40 COMPETITION FOR RESOURCE RIGHTS AND EQUITY ISSUES ....................................................................... 41 IMPACT ON AGRICULTURAL PRODUCTION ................................................................................................. 42 EMPLOYMENT ........................................................................................................................................... 42 REDISTRIBUTION OF WEALTH.................................................................................................................... 44 ii DISPLACEMENT OF LOCAL POPULATIONS .................................................................................................. 45 HUMAN RIGHTS VIOLATIONS..................................................................................................................... 45 SOCIAL DISTURBANCES............................................................................................................................. 45 CORRUPTION............................................................................................................................................. 46 PUBLIC INCOME AND PUBLIC SPENDING .................................................................................................... 46 CONCLUSIONS........................................................................................................................................... 46 CHAPTER 5: FINANCIAL RISKS ASSOCIATED WITH SHRIMP FARMING ............................. 49 INPUT FACTORS......................................................................................................................................... 50 OUTPUT FACTORS ..................................................................................................................................... 51 DESIGN FACTORS ...................................................................................................................................... 52 NATURAL FACTORS................................................................................................................................... 53 DISCUSSION AND CONCLUSIONS................................................................................................................ 54 CHAPTER 6: PLANNING AND MANAGEMENT FOR SUSTAINABLE SHRIMP AQUACULTURE....................................................................................................................................... 55 LEGAL FRAMEWORKS ............................................................................................................................... 55 PLANNING AND RESOURCE MANAGEMENT ................................................................................................ 57 ECONOMIC AND MARKET INCENTIVES AND DISINCENTIVES ...................................................................... 57 NGO INITIATIVES ..................................................................................................................................... 59 FARMER AND INDUSTRY INITIATIVES ........................................................................................................ 60 SCIENTIFIC RESEARCH............................................................................................................................... 60 CONCLUSIONS AND RECOMMENDATIONS .................................................................................................. 61 CHAPTER 7: PROJECT PLANNING AND ASSESSMENT................................................................ 65 THE INVESTMENT PROJECT CYCLE 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