SHRIMP

INTENSIVE
CULTURE
A REVIEW OF THE POTENTIAL FOR COMMERCIAL
IMPLEMENTATION IN SOUTH AFRICA
BY LAURENCE EVANS LAURENCE@ECOTAO.CO.ZA
ECOTAO ENTERPRISES CC
 CHALLENGES
SHRIMP/PRAWNS ARE AN INTERNATIONAL COMMODITY WITH THE PRICE INFLUENCED BY GLOBAL
PRODUCTION;
HIGH LEVELS OF COSTLY BIOSECURITY ARE NEEDED TO PREVENT VIRAL AND OTHER DISEASES FROM
ENTERING THE PRODUCTION FACILITY;
ENERGY INPUTS NEED TO BE REDUCED SO THAT THE COST OF PRODUCTION IS BELOW THE MARKET PRICE;
HIGHLY EFFICIENT HATCHERY PRODUCTION IS NEEDED TO ENABLE BACK TO BACK PRODUCTION SO AS TO
OPTIMIZE VIABILITY.
SOUTH AFRICAN WINTERS REQUIRE ADDED ENERGY INPUTS FROM MAY TO SEPTEMBER. EFFECTIVELY OF
THE YEAR IS TOO COOL FOR COMMERCIAL GROWTH RATES TO BE ACHIEVED;
FEED FOR THESE SYSTEMS NEEDS TO BE COMPLETE AND SUIT BIOFLOC TECHNOLOGY, SO IS A LONG-
RESEARCHED FORMULATION, HELD AS CONFIDENTIAL BY MANUFACTURERS;
VIBRIO SP. BACTERIA ARE A PROBLEM TO BE MANAGED IN THESE SYSTEMS AND IS AFFECTED BY THE FEED
FORMULATION;
 TEXAS A&M AGRILIFE RESEARCH: ISSUES
TO ADDRESS FOR COMMERCIAL
PRODUCTION
OPERATING YEAR ROUND: ESPECIALLY SIGNIFICANT IN SA CONTEXT
DISEASES: GLOBAL PROBLEM, VIRUS, BACTERIA AND FUNGUS
PL SUPPLY: ESPECIALLY SIGNIFICANT IN SA CONTEXT - LARGE SCALE NEEDED TO PREVENT INBREEDING
MARKETING: PRICE SENSITIVE, COMPETING WITH IMPORTS
FEED COST: ESPECIALLY SIGNIFICANT IN SA CONTEXT ADDED IMPORT COSTS
FCR: EXPERIENCED STAFF, CORRECT FEED PRODUCTION COSTS ARE VERY SENSITIVE TO FEED CONVERSION RATES

GROWTH: GENETIC SELECTION (+VE), INBREEDING (-IVE), TEMPERATURE (CONSTRAINT), FEED QUALITY,
STRESS
SURVIVAL: BIOSECURITY AND VIBRIO BACTERIA; ENVIRONMENTAL CONDITIONS
ENERGY & TEMP CONTROL: ESPECIALLY SIGNIFICANT IN SA CONTEXT
ZERO EXCHANGE VS. RECIRCULATING GENERALLY ZERO EXCHANGE FOR SHRIMP BIOFLOC + FLOC
CONTROL
 INTERNATIONAL COMMODITY: RAND PRICE
PER POUND, 20 YEAR Description:
Shrimp, No.1
Amatikulu shell-on
prawns closes
due to market headless, 26-
prices 30 count per
pound,
Mexican
origin, New
York port, US
cents per
pound

The price reflects the impact of currency exchange rates against the US$
INTERNATIONAL COMMODITY: US$ PRICE
PER POUND, 20 YEAR Description:
AHPND disease originated Shrimp, No.1
in China in about 2009 and shell-on
was officially reported in headless, 26-30
the Peoples Republic of count per
China and Vietnam in 2010, pound, Mexican
in Malaysia in 2011, in origin, New York
Thailand in 2012 and in port, US cents
Mexico in 2013
per pound;

The current
Asian lower
intensity shrimp
pond production
models are
successful &
dictate the price
INTERNATIONAL COMMODITY: EURO PRICE
PER POUND, 20 YEAR Description:
Shrimp, No.1
shell-on
headless, 26-
30 count per
pound,
Mexican
origin, New
York port, US
cents per
pound
 TECHNOLOGY STATUS @ AVAILABILITY
TEXAS A&M AGRILIFE RESEARCH MARICULTURE LAB HAS BEEN
DEVELOPING SINCE BEFORE 2003 AND CURRENTLY HAS A
PUBLICATION IN PRODUCTION TO ALLOW COMMERCIAL
IMPLEMENTATION OF THEIR DESIGN. (
HTTPS://WWW.WAS.ORG/MEETINGS/SHOWABSTRACT.ASPX?ID=42481
)
IN BELGIUM: CREVETOPE SHRIMP FARMING SYSTEM CLOSED ZERO
ISBN: 978-1-888807-23-3
EXCHANGE FARM FOR INTENSIVE PRODUCTION OF MARINE SHRIMP
Samocha, TM, DI Pragnell, TR Hanson, GD Treece, TC Morris, LF Castro
& N Staresinic. 2016. Design and Operation of Super Intensive,
Biofloc-Dominated Systems for Indoor Production of the Pacific White
Shrimp, Litopenaeus vannamei The Texas A&M AgriLife Research
Experience. The World Aquaculture Society, Baton Rouge, Louisiana
USA.
BIOFLOC SYSTEM ADVANTAGES AND DISADVANTAGES
PRODUCTION POTENTIAL
PRODUCTION POTENTIAL 2013 (NOTE THAT
IT TAKES >60 DAYS TO GET TO 3.6G)
PRODUCTION POTENTIAL
FCR = food
conversion ratio

PER = Protein
efficiency ratio

http://pdf.gaallia
nce.org/pdf/GAA
-Boyd-
Dec05.pdf
RACEWAY
EMPHASIS ON SIMPLE LOW ENERGY
TECHNOLOGIES
ST =
settling
tank
RW =
raceway
FF = foam
fractionat
er
RAS
LOW COST
 SIMPLIFIED TECHNOLOGY & CLOSE
PARAMETER MONITORING
WATER CIRCULATION, MIXING & OXYGENATION IN EACH RW WERE
MAINTAINED BY 14 A3 INJECTORS (A3 ALL AQUA AERATION, ORLANDO, FL) &
TWO 2 HP PUMPS
EACH RW HAD 2 YSI OPTICAL DO PROBES & 5500D INLINE MONITORING
SYSTEM (YSI INC., YELLOW SPRINGS, OH)
COMMERCIAL PROBIOTIC - ECOPRO (ECOMICROBIALS, MIAMI, FL) - EVERY
SECOND DAY TO DAILY
NO WATER EXCHANGE FRESH WATER ADDED TO MAINTAIN SALINITY
 UNCOMPLICATED, FAIL PROOF EQUIPMENT
FOAM FRACTIONATOR
OPERATED WITH ONE A3 INJECTOR, FLOW RATE 28 LPM, FED FROM THE
PUMPS SIDE LOOP
USE OF FABRIC FOR DEWATERING AND DRYING OF THE ORGANIC
PARTICULATE MATTER
SETTLING TANKS
CONICAL TANK 2 M3, FLOW RATE 20 LPM, FED FROM THE PUMPS SIDE LOOP
USE OF FABRIC FOR DEWATERING AND DRYING OF THE ORGANIC
PARTICULATE MATTER
TARGETED TSS OF 200-300 MG L-1 & SS OF 10-14 ML L-1
SIMPLE, BUT EFFICIENT TECHNOLOGY

Supplemental oxygen was

provided intermittently
NON-MECHANICAL, FAIL-PROOF
TECHNOLOGY
 LOW TECHNOLOGY, INEXPENSIVE
EQUIPMENT FOR FLOC MANAGEMENT: 2013
 ROUTINE WATER QUALITY MANAGEMENT
TEMPERATURE, SALINITY, DISSOLVED OXYGEN, AND PH WERE RECORDED TWICE DAILY
SETTLEABLE (SS) WERE MEASURED DAILY
TOTAL SUSPENDED SOLIDS (TSS) WERE MEASURED TWICE/WK
NH4-N, NO2-N, NO3-N, VSS, TURBIDITY, CBOD5, AND RP WERE MONITORED WEEKLY
ALKALINITY WAS ADJUSTED TO 160 MG/L DAILY USING SODIUM BICARBONATE
EACH RW WAS EQUIPPED WITH A YSI 5200 MONITORING SYSTEM TO PROVIDE
CONTINUOUS DO AND TEMPERATURE READINGS
A COMBINATION OF FOAM FRACTIONATORS AND SETTLING TANKS CONTROLS SOLIDS
WITHIN THE TARGETED RANGES AT FEED LOADS OF UP TO 22 KG FEED/RW/D (MEAN
TSS LEVELS WERE 292 MG/L; MEAN SS LEVELS WERE 12 ML/L)
 FEEDING METHOD
SHRIMP WERE FED 40% CP FEED WITH 9% LIPID (ZEIGLER BROS.,
GARDNERS, PA)
RATIONS WERE INITIALLY DETERMINED USING AN ASSUMED FCR OF 1.2-1.3,
GROWTH OF 1.5 G/WK, AND MORTALITY OF 0.5%/WK, AND WERE ADJUSTED
BASED ON 2/WK GROWTH SAMPLES & SHRIMP MORTALITY
FEED WAS DISTRIBUTED CONTINUOUSLY 24/7 USING BELT FEEDERS
HARVESTING BY PUMP
 TYPICAL COSTS 2013

SHRIMP SALES PRICE: AVERAGED $7.20/KG ($3.27/LB) AND $8.82/KG

($4.00/LB)
GROW-OUT FEED: ZEIGLER BROTHERS
HYPER-INTENSIVE (HI-35): $1.92/KG = $ 1,920/MT OR $0.87/LB = $ 1,741/TON
EXPERIMENTAL (EXP): $1.94/KG = $1,940/MT OR $0.88/LB = $1,760/TON

JUVENILES (4G) PRODUCTION COST: $ 8/1,000

INTEREST RATE FOR LOANS: 8%
 MODEL COSTS

Notes: The 4.7 crops is from 4g to harvest, so additional space and days are
needed for the hatchery and rearing from hatchery (postlarvae 15) to 4 grams.
 SUMMARY OF PRODUCTION AND SALES FOR SUPER-INTENSIVE
RECIRCULATING SHRIMP PRODUCTION SYSTEMS

Challenges:
Must have year-round PL supply! Back-to-back-to-back production is needed.
 INVESTMENT POTENTIAL AND ECONOMIC
VIABILITY
TEXAS A&M, AFTER 20 YEARS OF RESEARCH AND TRIALS, WITH THE HIGHEST
SCIENTIFIC AND FINANCIAL INVESTMENT, IS INDICATING A POTENTIAL BUT
NOT CERTAIN COMMERCIAL VIABILITY OF SHRIMP BIOFLOC TECHNOLOGY,
DUE TO KEY PRODUCTION PARAMETERS (PLEASE REFER REF #1).
REFERENCES #
[#1] ECONOMIC ANALYSIS:
HTTP://WWW.TEXASAQUACULTURE.ORG/BIOFLOC/HANSON%20ECON%20OV
ERVIEW%20OF%20BIO-FLOC%20SHRIMP%20RECIRC%20WAS%202014%20VE
R%202%20PPT.PDF
 ADDITIONAL SPECIES
CULTURE OF RED DRUM INTEGRATED TO TILAPIA AND SHRIMP IN BFT
SYSTEM
TILAPIA (BLOFLOC) BIOMASS CAN REACH 20-30 KG/M3 (200-300
TON/HA), AS COMPARED TO SHRIMP BIOMASS OF ABOUT 2 KG/M3
TILAPIA ARE ABLE TO UTILIZE BIOFLOC
FARM INVESTMENT FAILURES
 FARM INVESTMENT FAILURES
HTTPS://WWW.YOUTUBE.COM/WATCH?V=PPVGUMIWTDU

SeaArk Africa closed down

in 2009
software system valued at
R35-million
driven by $40-million of
R&D
Total loss unknown
CURRENT SUCCESSFUL/OPERATIONAL COMMERCIAL FARMS:
AMERICAN MARICULTURE
AMERICAN MARICULTURE

Stocked first shrimp from

hatchery
JANUARY, 2014
 COMMERCIAL FARMS
FRESH SHRIMP USA , LLC INDIANTOWN, FLORIDA. THEY HAVE A 40 - ACRE SITE WHICH THEY
PLAN TO GROW SHRIMP OUTDOORS IN LINED PONDS USING BIOFLOC TECHNIQUES. POSITIVE
INITIAL PRODUCTION REPORTED IN 2015 BUT NO DETAIL, ONLY WITH PROJECTIONS FOR 2016.
ITHUBA SHRIMP. WEB SITE: WWW.ITHUBASHRIMP.COM OWNER, LES KNOESEN FROM SOUTH
AFRICA.
CHINA: HTTP://WWW.SINOAGROFOOD.COM/CONTENT/EBAPCD
HTTP://MARVESTA.COM/ABOUT-MARVESTA/DOMESTIC-SHRIMP-FARMING/ AND
HTTPS://YOUTU.BE/HWLTIX4GQHK
HTTP://WWW.FLAQUACULTURE.COM/HOME FLORIDA ORGANIC AQUACULTURE
SINO AGRO FOODS
FLORIDA ORGANIC AQUACULTURE (FOA)
http://www.flaquaculture.com/hom

This is still a relatively new farm,

FOA Construction commenced in 2013
FOA
FOA
FOA
FOA
 ADVISED STRATEGY

IF COMMITTED TO INVESTMENT, IMPLEMENT PILOT PROOF OF TECHNOLOGY

FIRST, POSSIBLY IMPLEMENTING 2 TECHNOLOGIES
DO NOT INVEST IN SUPPORTING TECHNOLOGIES OF FEED AND HATCHERY
OPERATIONS UNTIL TECHNOLOGICAL VIABILITY IS EVALUATED
PILOT PHASE SHOULD BE A MINIMUM OF 2 YEARS (2 WINTERS)
AVOID EXPENSIVE AND/OR SECRET (PROPRIETARY) TECHNOLOGIES
 CONCLUSION: INTENSIVE SHRIMP PRODUCTION
ECONOMIC CHALLENGES BY DURWOOD M. DUGGER
FOR ANY SHRIMP PRODUCTION MODEL TO BE SUCCESSFUL THERE ARE A NUMBER OF BASIC ECONOMIC HURDLES
THAT HAVE TO BE OVERCOME - BEYOND THE STANDARD TECHNICAL ONES. THE FIRST OF WHICH IS FEED COST -
WHICH ACCOUNTS FOR UP TO 60% OF SHRIMP PRODUCTION COSTS. DEPENDING ON THE PARTICULAR SYSTEM AND
ITS LOCATION - SEED, ENERGY AND TECHNICAL MANAGEMENT COSTS COMPETE FOR THE LARGEST SECONDARY TOP
PRODUCTION COSTS. STACKED RACEWAYS' MOST SIGNIFICANT CONTRIBUTION TO SHRIMP PRODUCTION ECONOMICS
IS THE REDUCTION IN FOOT PRINT (LAND AND BUILDING COSTS) - THOUGH THE RACEWAYS THEMSELVES ARE
GENERALLY SPECTACULARLY MORE EXPENSIVE PER UNIT OF SHRIMP PRODUCTION SURFACE COMPARED TO SIMPLE
SINGLE LAYERED, LINED AND COVERED PONDS. AS AQUACULTURE ECONOMIST HAVE BEEN TELLING US FOR THE PAST
40 YEARS, MOST AQUACULTURE PRODUCTION ISN'T PARTICULARLY CAPITAL SENSITIVE. THIS EVEN MORE SO AT
TODAY'S EXCEPTIONALLY LOW INTEREST RATES. THIS MEANS UNLESS A SHRIMP PRODUCTION SYSTEM CAN MAKE
DIRECT AND SIGNIFICANT REDUCTIONS IN PRIMARY PRODUCTION OPERATING COSTS (FEED, SEED, ENERGY, AND
TECHNICAL MANAGEMENT) OVER COMPETING SYSTEM DESIGNS - IT REALLY ISN'T GOING TO BE COMPETITIVELY, OR
ECONOMICALLY VIABLE. JUST INCREASING THE PRODUCTION OF SHRIMP PER SQUARE SURFACE UNIT OF FACILITY
FOOT PRINT, REALLY DOESN'T CONTRIBUTE MUCH ECONOMICALLY TO REDUCING THE PRIMARY PRODUCTION COSTS
OF SHRIMP. FAILING TO REDUCE PRIMARY PRODUCTION COSTS IS THE MOST COMMON ECONOMIC DOWNFALL OF
MOST INTENSIVE SYSTEMS - THEY REALLY DON'T PROVIDE SIGNIFICANT COST REDUCTIONS IN OPERATION COSTS
OVER LOW INTENSITY SYSTEMS. JUST DESIGNING A SHRIMP PRODUCTION SYSTEM THAT PRODUCES MORE SHRIMP
PER SQUARE FOOT ISN'T ENOUGH WHEN THE PRODUCTION COST OF THOSE SHRIMP PER SQUARE FOOT ARE HIGHER
THAN OTHER SYSTEMS. WHEREAS IN LOWER INTENSITY SYSTEMS NATURE (ALBEIT LESS THAN PREDICTABLE) DOES
PROVIDE SIGNIFICANT ECONOMIC INPUTS (SECONDARY NUTRIENTS, WATER FILTRATION, DEGASSING, AND LARGER
MORE STABLE HEAT SINKS, ETC.) AT MUCH LOWER COSTS THAN INTENSIVE SYSTEMS - ESPECIALLY IN WARMER
CLIMATES.
 D. DUGGER CONTINUED
AS WE ALL KNOW, THERE HAVE BEEN LOTS OF INTENSIVE SHRIMP PRODUCTION EFFORTS IN THE
US OVER THE LAST FEW DECADES. AS YET, NONE HAVE BEEN EVEN CLOSE TO BEING LOWEST
COST PRODUCERS, OR FOR THAT MATTER - PROFITABLE. OF COURSE, MANY SEEM TO THINK
THEY ARE GOING TO FIND A MARKET NICHE IN THE SHRIMP MARKET THAT WILL SUPPORT THEIR
INTENSIVE SYSTEMS COMPARATIVE (COMPARED TO LOWER INTENSIVE SYSTEMS) HIGHER
OPERATING COSTS. APPARENTLY, MOST FAILED TO REALIZE THAT BY DEFINITION MOST IF NOT
ALL NICHE MARKETS ARE EPHEMERAL AT BEST. THERE ARE ALMOST NO NICHE MARKETS THAT
COMPETITORS WON'T INVADE IF THERE ARE SUFFICIENT ECONOMIC INCENTIVES TO DO SO. I
CAN'T COUNT THE NUMBER OF PROSPECTIVE CLIENTS WE HAVE HAD THAT WERE GOING TO LAY
CLAIM TO THE "PREMIUM LIVE SHRIMP MARKET," THE "PREMIUM FRESH ON ICE MARKET," OR
THE PREMIUM "LOCALLY PRODUCED MARKETS," THE "DIRECT TO RESTAURANT", THE "DIRECT TO
CONSUMER," ETC., ETC. IN ALMOST EVERY CASE THE CLIENTS UNDERESTIMATED THEIR
ASSUMPTIONS FOR THE 'COST OF SALES' IN THESE MARKETS. THOSE UNDERESTIMATIONS ATE
UP ANY ENVISIONED "PREMIUM NICHE MARKET MARGINS" THEY HAD PROJECTED - AND THEN
SOME, WHICH SUBSEQUENTLY LED THEM TO ECONOMIC FAILURE.
 D. DUGGER CONTINUED
SHRIMP IS A COMMODITY MARKET. EFFECTIVE SHRIMP PRODUCTION TODAY IS ACCOMPLISHED BY VERY EFFICIENT
VERTICAL INTEGRATION AT OPTIMUM ECONOMIES OF SCALE. I KNOW OF NO SMALL SCALE PRODUCTION MODELS FOR
SHRIMP THAT HAVE DEMONSTRATED SUSTAINED PROFITABILITY. NICHE MARKETS ARE GENERALLY SMALL AND
SPECIALIZED AND RARELY IF EVER HAVE THE NECESSARY SCALE TO ALLOW FOR OPTIMIZED PRODUCTION ECONOMIES -
AND COMPETITIVE PRODUCTION COSTS. ALL ONE HAS TO DO IS EXAMINE THE US SHRIMP MARKETS. LOOK AT THE PRICES
FOR THE ABSOLUTELY BEST SHRIMP OVER THE LOWEST QUALITY SHRIMP AND YOU WILL FIND A VERY SMALL DIFFERENCE
- SOMETHING LIKE 10-15% TOPS. THERE ARE ACTUALLY GREATER PRICE DIFFERENTIALS AND PREFERENCE FOR SIZE
THAN THERE IS FOR QUALITY. THIS IS PRIMARILY BECAUSE MOST OF THE SHRIMP SOLD AND CONSUMED IN THE US GO TO
RESTAURANTS. HOWEVER, THEY FIRST GO THROUGH A VERY ORGANIZED WHOLESALE SEAFOOD DISTRIBUTION SYSTEM
CONTROLLED BY LARGE AND WELL RUN COMPANIES. THE WHOLESALE DISTRIBUTION AND THE RESTAURANTS ACT AS
FIREWALLS PREVENTING EFFECTIVE SHRIMP PRODUCER EFFORTS AT ADVERTISING OR EDUCATING THEIR END USER
MARKET REGARDING ANY PREMIUMS THEIR PARTICULAR SHRIMP MIGHT HAVE TO OFFER THE CONSUMER.
THE ONLY WAY AROUND THIS WHOLESALE DISTRIBUTIONS SYSTEM FOR THE SHRIMP PRODUCER IS TO BY-PASS THE
WHOLESALE DISTRIBUTORS BY SELLING AND DISTRIBUTING TO ONLY THEIR OWN RESTAURANT CHAIN - DIVIDING THE
MARGINS MORE EVENLY BETWEEN PRODUCTION, DISTRIBUTION AND END USER SALES. HOWEVER, TO BE THIS
VERTICALLY INTEGRATED JUST ON THE MARKETING SIDE (PRODUCER, DISTRIBUTOR AND RESTAURANT CHAIN) YOU
NECESSARILY NEED TO BE AT A VERY LARGE SCALE ON THE PRODUCTION SIDE (HATCHERY, GROWOUT, FEED MILL AND
VALUE ADDED PROCESSING PLANT). OVER THE PAST 40 YEARS A FEW COMPANIES HAVE TRIED TO GROW SHRIMP AND
SELL THEM TO THEIR OWN RESTAURANTS, BUT NONE THAT I AM AWARE OF EVER REACHED SUFFICIENT SCALE TO
SURVIVE LONG ENOUGH, OR GROW LARGE ENOUGH TO TRULY TEST THIS FULLY VERTICALLY INTEGRATED AND HIGHLY
COMPETITIVE SHRIMP PRODUCTION/MARKETING MODEL.
PERSONALLY, I THINK ULTIMATELY SHRIMP AND OTHER AQUACULTURE SPECIES WILL BE PRODUCED INTENSIVELY -
PERHAPS EVEN AS THE LOWEST COST PRODUCER.