Risk management strategies in fisheries management: a study from shrimp farms

DEWAN ALI AHSAN

University of Southern Denmark

Coastal shrimp farming

Coastal shrimp farming is one the largest fisheries sector of the world especially in Southeast Asia and Latin America.

The contribution of Bangladesh in global shrimp farming is nearly 6%.

Nearly1 million people directly associated with shrimp farming and exporting activities.

Shrimp farming is the third largest sources of foreign exchange earning.

Bangladesh earns nearly 275 million Euros per annum by exporting frozen shrimp to EU countries, America and Japan.

Table: Shrimp farm production (Mt)of Bangladesh

Year Production

1990-91 19,489

1991-92 20,335

1992-93 23,530

1993-94 28,302

1994-95 34,030

1995-96 46,223

1996-97 79,020

1997-98 88,018

1998-99 90,076

1999-00 92,448

2000-01 93,014

2001-02 97,605

2002-03 100,804

2003-04 114,660

2004-05 120,710

2005-06 127,923

Table: Export frozen shrimp from Bangladesh

Year Quantity(Mt)

Value(million Euros)

1992-93 19,224 60.40

1993-94 22,054 78.77

1994-95 26,277 104.56

1995-96 25,225 110.63

1996-97 25,742 118.89

1997-98 186,30 118.14

1998-99 201,27 116.22

1999-00 285,14 161.21

2000-01 297,13 188.51

2001-02 302,09 144.77

2002-03 368,64 171.98

2003-04 429,43 215.277

2004-05 465,33 228.15

2005-06 493,17 269.83

Source (DoF, 2007)

Small

Medium

Large

Shrimp farmsEntrepreneurs

Ponds

Ponds

EU markets

Middle men

Fig 1 : Production and marketing channels of shrimp in Bangladesh

Shrimp farmsEntrepreneurs

EU

Fig 2 : Relation and coordination among different groups

Ministry of fisheries

DoF

Middle man

Shrimp farming zone:

The total production area is projected around 170,000 ha

135,000 ha ( 80% of total area) in Khulna, Satkhira and Bagerhat districts and nearly 35,000 ha in Cox’s bazar districts (DOF,2006).

There are approximately 38,000 farms cultivating shrimp.

The average farm size is 4.5 hectares although more than 50% of farms are now less than 1 hectares

Tiger shrimp ( Panaeus monodon) is mostly cultivated in coastal zone of Bangladesh.

Fig 3. Coastal shrimp farming zones in Bangladesh (Isam,2003)

Shrimp culture system

•Extensive and semi-extensive cultural techniques have been followed in Bangladesh.

•Intensive system the density of PL is very high. It requires very high input and gives larges output. It requires small piece of land in comparison to extensive farming.

•Intensive culture is common in Thailand, China and India.

Coastal land management

•Anyone can start shrimp farming. They can convert the agricultural land into pond by making dyke, polder etc.

•No need for permission

•No license fee or tax is required.

Fig 4: Shrimp farm in coastal zone

Fig 5. Sundarbans mangrove forest

Pressure on Mangrove ecosystem

10,000 ha of mangrove has been destroyed within four decades

PL (post larvae) collection from wild stock is depleting the biodiversity

40% PL die from the time they are caught to the time they are stocked to pond

Thosands of women and childrean are engaged in PL collection in Sundarban estuary

PL (post larvae) collection from wild stock is depleting the biodiversity

40% PL die from the time they are caught to the time they are stocked to pond

Government declared total ban of PL collection in 2000.

Fig. 6: PL collection

Soil degradation and change in soil properties

Salinity and acidity of shrimp pond soils and surrounding agricultural land has been increased

Rice production has been decreased due to increased salinity and acidity.

High salinity and acidity are also unfavorable for the aquatic species of paddy grounds as well

The dual culture land ( rice in dry season and shrimp in rainy season) now is using only for mono culture

Social conflicts

The outsiders (rich people) and their local allies became the owner of large shrimp farms.

Large number of small rice farmers also handed over their lands to them (by selling or giving them lease power). If the farmers are not interested to give them property right, the outsiders forcefully capture the land (by threatening, killing, harassment).

They also grasped the public wetland land by having long term lease ownerships

•Large number of local small and medium scale rice farmers also started shrimp farming since 1990’s.

•A number of coast agricultural lands have been converted into shrimp ponds even without the consent of surrounding land owners.

In 1986, government issued an order to solve the problem.

No one can start shrimp farming without the consent of 85% of local land owners and it must ensured that such farming should not affect the adjacent agricultural land by seepage of saline water ( Ahmed et al,2002).

But no one shows respect to that order as there is no monitoring system.

Research gaps

No earlier studies have been conducted to identify and assess different types of risks ( production, financial, marketing and so on) associated with shrimp farming and marketing in Bangladesh.

No study has been conducted to find out the Total Economic Value (TEV) of shrimp farming. Social cost of shrimp farming is also to be ascertained.

The relative lack of information about farmer’s and exporter’s risky environment and their reactions to it means that there are few useful practical insights for policy makers, farm advisers, and researchers

Objectives of the study

Identify the risks and uncertainties associated with shrimp farms Shrimp farmers’ risk perceptions and risk management responses. The result will be compared with Danish farmers risk perceptions

Shrimp exporter’s risk perceptions and risk management responses

Assess the probability of introduction of crop insurance and forward trading as tools of risk management

Farm and farmer characteristics related to the risk perceptions and strategies.

Materials and methods

The present study will use a descriptive approach.

Data collection

The data will be collected as a part of a larger questionnaire survey of risk and risk management in shrimp farming.

Data analyses

All computations would be conducted using the standard statistical program package.

Trust game: Trust game methods will be used to as a technique to measure the risk attitude and behavior of the shrimp farmers.

Expected out put

From the present study the following outcomes are expected;

• it will give a clear understanding of the various risk factors associated with shrimp cultivation and exportation;

• the study will also give the idea about the shrimp farmers and exporters perceptions about the risk and the way they tackle those factors;

• a more clear insight about the shrimp farmer’s and farms characteristics accordance with risks will be obtained;

• the present study will also expected to provide with appropriate policy recommendations capable of mitigating various problems associated with risk.

Thank you

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