THE CRUST - ISSUE #7

Hello readers, and welcome to April’s edition of THE CRUST. This month is the fasting season for Muslims around the world. At this time in Indonesia, work usually goes at a slower, more laidback pace. But regardless, our farms still need to operate because our crops shouldn’t follow their caretaker and fast with them. Interestingly, some farms in Indonesia adapt to this situation and adjusts their crop cycle to this holiday. One reason for this is so the worker can go home and enjoy the holiday with their families. But another reason is to avoid having big shrimp coming to Ramadan because we usually see a dip in shrimp prices.

However, we are experiencing some abnormalities here in Indonesia. Usually, this time of year, shrimp price plummets due to the selling rush. Farmers with mature stocks tend to sell to avoid problems during the Eid al-Fitr holiday, a week when all factories close down and shrimp purchasing comes to a halt. Packers usually use this window of opportunity to obtain cheap raw materials and stock up their cold storage. But this year, we didn’t see this drop. Instead, prices stayed the same or even went up. A possible reason for this is the scarcity of stock since many farms are struggling due to diseases. Another interesting news that came up this month is about currencies. USD is going down surprisingly, which is often bad news for shrimp prices since they are one of the main export mar-

kets. Hopefully, this is also followed by a decrease in feed prices. Additionally, a new contender for the world’s primary currency comes from the BRICS group and their new proposed currency. The BRICS hope that creating a new centralized currency can decrease the world’s dependency on the USD. Will this succeed? Only time will tell. But significant changes won’t probably come in the short term.

Despite the various things happening globally, we shouldn’t lose our focus on taking care of our farms. Because, in the end, there is little we can do to influence what is happening in the world at large. What we can do is keep producing great seafood and make sure the world has enough food supply.

THE CRUST - RIZKY

Rizky Darmawan Chief Editor

Indonesia’s shrimp industry is not in good condition. The challenge from diseases and low shrimp prices encourage industry players to make a better strategy to survive this tough period. Addressing this issue, Haris Muhtadi, the Chairman of Shrimp CIub Indonesia (SCI), in his opening speech at the Indonesia Shrimp Retreat (ISR) 2023 event held at Eastparc Hotel Yogyakarta last March, said that Indonesian shrimp industry players must start to consider about the market condition and not just focusing entirely on production.

Indonesia Shrimp Encouraging Global

In his speech, Deny Mulyono, Chairman of GPMT (Association of Animal Feed Companies), said that everything related to it would follow when the market grows. This ISR event, he said, is not just about the feed mill company but will also discuss the market condition. He hopes that all stakeholders, including farmers, processing players, and feed mills, will have a better understanding of the current market. “How do we meet the market’s demand, and how can we open the access to shrimp market as widely as possible so that business will flourish and be sustainable,” he said.

Pamudi, a USSEC Technical Consultant for Aquaculture in Indonesia, hopes that The Indonesia Shrimp Retreat (ISR) can accommodate what is currently needed by the Indonesian shrimp industry. Therefore, in 2023 the event’s theme is about the carrying capacity and shrimp trading market. In the near future, the theme will change accordingly depending on the conditions of the industry.

Tb Haeru Rahayu, Indonesia’s Ministry for Marine Affairs and Fisheries (KKP) Director General for Aquaculture, said that Indonesia is currently shifting the cultivation paradigm. He explained that the current aquaculture development policy focuses not only on production. However, the policy overall is shifting its focus to an aquaculture industry that is sustainable, independent, competitive, and focused on high-economic-value commodities. “Aquaculture must apply the Blue Economy concept. By focusing on the spirit of ‘Ecology as the Commander,’ we will support economic and environmental sustainability,” he em-

phasized.

Meanwhile, according to Deny, the price issue is still a problem that haunts shrimp farmers. The price level in the first quarter of 2023 gives hope, even though it still has yet to reach the level of the third quarter of 2022. “This price issue is affected by supply and demand,” he stressed.

Price Improvement

China’s foreign policy that unilaterally blocked products from Ecuador from entering its country had a significant impact on the position of Indonesia in the US market. This condition, Deny observed, will continue as long as Ecuador manages to serve the US market. “It could be worse if China, previously the main export destination of Ecuadorian shrimp, tightens their restrictions like what they did last year,” he told THE CRUST.

As long as there is no significant change in shrimp demand from the US market, he continued, the market competition will continue to exist. However, according to his insight, shrimp farmers in Indonesia can achieve the best efficiency by increasing the survival rate (SR) in intensive cultivation. Moreover, farmers should look into other potential export markets with high seafood demand but lack the resources to produce themselves.

Deny explained that shrimp prices had plunged deeply since the third quarter of 2022 and had only begun to creep up in the first quarter of 2023. The data shows that Indonesia’s shrimp price is more competitive than Vietnam, although still at a comparable level to India’s. However, we must

Haris Muhtadi, Deny Mulyono & Pamudi

Retreat 2023: Competitive Farmers

admit that we are still far less competitive than Ecuador.

Ecuador, which uses a Traditional Plus method in cultivation, differs from the widely used method in Indonesia. Based on this, Deny said that it’s not fair to compare the shrimp price in Indonesia to Ecuador. “But I am confident that as long as people still need to eat, the shrimp market will persist, and there is also the fact that shrimp is more sustainable compared to red meat,” Deny said confidently.

When considering the threat of disease to shrimp cultivation, Deny staunchly said that it has nothing to do with the low price. However, he did not deny that the low price would be more painful for farmers whose farms were hit by diseases. “Speaking about diseases, it is necessary to observe various efforts needed to increase the survival rate. And there is no harm in learning from India how they survive similar situations. But, it’s important to point out that to see a significant result, a change must be done together by all the farmers in one region; a mere one or two persons making an effort will not be enough,” he explained.

Increasing Competitiveness

Another alternative that can be considered to improve industry competitiveness is exploring the tourism sector, according to Deny. Quoting the view of Janeen Arnold Costa (1993), he believes that tourism can boost interest, which will change the behavior in both directions, either tourists or areas visited by tourists. This view explains a certain connection between tourism and shrimp consumption.

Deny further explains that the stakeholders of shrimp trading must keenly observe which country or local tourism likes to consume shrimp or other seafood. “We need to make gastronomy as a way to increase shrimp consumption and introduce to the consumers that shrimp, despite its diverse variety, is part of a sustainable fishery product. Therefore, the expectation is that shrimp consumption will increase and the knowledge of shrimp as a sustainable product will be carried to wherever they go,” he said.

Deny also briefly mentioned the shrimp processing industry because processing is closely related to shrimp consumption, and the opportunity to increase domestic shrimp consumption is clearly there. “I hope that many processing factories in Indonesia can cooperate with KKP or other institutions. This will create activities that introduce shrimp to new consumers, which increase local consumption while staying contextual and acceptable to the locals,” he said.

To add insight and awaken the passion of shrimp farmers, ISR 2023 presents speakers from various fields, such as marketing, experts in shrimp management, and fisheries startups that focus on aquaculture. Among the experts who attended as speakers were Shirlene Maria Anthonysamy from Infofish, Corey Peet from Postelsia, Widodo Sumiyanto from BKIPM, Alexander Farthing from DELOS, John Hargreaves, who

is the Editor in Chief of WAS Magazine, Dr. Mian Riaz from Texas A&M University, Robert Blonk from Kona Bay, and Prof. Agus Suprayudi from IPB University.

ISR 2023, held for two days, presented

seminars with various topics and themes. Besides the seminars, there were also mini-exhibitions organized by multiple companies supporting shrimp cultivation. The list of exhibitors includes feed mill companies such as CP Prima, Suri Tani Pemuka, and Sinta Feedmill. Moreover, start-up companies such as DELOS and FisTx were also present to enliven the event.

THE CRUST - HK, UTE, Gems

Photo source

Aquaculture Illuminated:

Decoding the Secrets of Strategic Shrimp Farming

Welcome to the first part of our multi-part series, “Aquaculture Illuminated: Decoding the Secrets of Strategic Shrimp Farming.” In this series, we delve into the world of shrimp farming, exploring the intricate web of factors that contribute to a successful and sustainable operation.

In the enchanting world of aquaculture, farming was once easy thanks to the industry’s error tolerance, even with survival rates as low as 65%. However, as the exfarm gate price fallout hit, farmers’ focus on high biomass and larger shrimp sizes became less profitable and risky. Whispers of change were in the air as the external climate called for a new game plan. The aquaculture industry was forced to adapt to a new era of sustainability and profitability, leaving behind old ways of doing things.

The changing landscape of the aquaculture industry had now rendered maximizing biomass and size a less lucrative strategy, providing neither the best profit nor the lowest risk. The new era called for a focus on achieving a profitable culture with almost zero risk, where repeatability of production and sustainability took center stage.

To aid our dear farmers in navigating this stormy sea of change, I would like to introduce three charts providing a clear visualization of how different decisions influenced various aspects of farming strategy and understand how different factors affect the outcome of your endeavors. Hopefully, you, the dedicated farmers, can adapt your strategies and thrive in this new chapter of the aquaculture industry. Gone are the days of chasing mere size and biomass; now is the time for embracing sustainability, repeatability, and resilience in the face of an ever-changing climate.

Conclusion

Introduction to the three graphs

In the mesmerizing world of shrimp farming, three graphs stand side-by-side, offering a visual depiction of the impact of various factors on the farming operation’s success. While the graphs may not be an accurate representation, they provide an understanding of the complex interplay of different variables in shrimp farming.

The first graph shows the Shrimp price, indicating the different prices in different areas. It also highlights that smaller or larger shrimps tend to fetch better prices, which is important for farmers to consider when developing their production strategy to maximize profit.

second graph depicts the Biomass, which takes into account the Average Daily Gain (ADG) and Mortality rate in different shrimp strains. Farmers must understand how these factors impact the biomass yield to make informed decisions about their farming operation.

The third graph is the Revenue graph, which is the product of the Shrimp price and Biomass graphs. The cost line is also shown, taking into account the various factors that influence production cost, such as logistics accessibility and inlet water condition. Farmers must aim to maximize the distance between the revenue and cost lines to achieve maximum profit.

However, shrimp farming is not without risk, which is why it’s crucial to reduce risk wherever possible. Farmers must be conservative in their strategy, as failure rates can be high, and compounding interest can make it challenging to recover from significant losses.

Farming a cycle is akin to trading, where a 50% profit is needed to cover a 33.3% loss. Farmers must keep this in mind when developing their production strategy, as reducing risk is essential to achieve profitability and sustainability in the long run.

In conclusion, These charts serve as navigational tools, empowering you, the devoted farmers, to visualize and grasp the intangible risks and rewards that accompany the noble pursuit of shrimp farming. May you gain an intuitive understanding of how the myriad factors intertwine to shape your strategy, guiding you through the ever-shifting landscape of this fascinating industry and chart your course towards a bountiful harvest.

This is only the beginning of our journey, and we invite you to join us as we continue to explore the fascinating world of shrimp farming in the coming editions of “Aquaculture Illuminated.” Keep an eye out for our next installment, where we delve deeper into the intricacies of shrimp farming and uncover more secrets to success.

So, dear farmers, let us raise our sails and embark on this grand adventure together. With the knowledge and insights gleaned from these charts, may you find the inspiration to strategize with renewed vigor, fostering an era of sustainability, repeatability, and resilience. Embrace the winds of change and navigate the tempestuous seas of the aquaculture world, as you set forth on a voyage towards a prosperous and thriving future. Happy strategizing!

Shrimp Price Nusa Tenggara Barat Shrimp Price Jawa Barat

The

Photo source : freepik, Tequisa Indonesia

Mitigate risk through mycotoxin deactivation

In

Every shrimp farmer wants to achieve high and stable productivity from cycle to cycle in their ponds. When talking about productivity, the primary factor that influences it is the carrying capacity. Productivity refers to the level of shrimp production in a cultivation system while carrying capacity refers to the maximum amount of shrimp that can be sustained in the system. Carrying capacity itself is also influenced by various factors.

John A. Hargreaves, an aquaculture consultant, and Editor in Chief of World Aquaculture Magazine, stated at Indonesia Shrimp Retreat 2023 that carrying capacity is the maximum biomass that can be sustained in a production unit. He also described carrying capacity as the capacity of a production system to assimilate organic matter and metabolic wastes, or as the maximum production possible while maintaining water quality within tolerable limits of the cultivated animals.

However, the size of the carrying capacity of a pond is influenced by several limiting factors that vary depending on the production system itself.

Limiting factors at different level system

The limiting factors for carrying capacity vary at each farming system and level. In traditional ponds, carrying capacity is limited by feed input. Without any feed input, as commonly practiced in traditional ponds, the pond’s carrying capacity is only around 200 kg/ha. In other words, if the carrying capacity of traditional ponds needs to be increased, the first step is to add technological touches, especially by adding feed. Furthermore, an aerator can be added to upgrade to a semi­intensive system.

Meanwhile, in semi­intensive and intensive shrimp farming systems, the

Optimizing the Carrying Capacity Strategies and Factors

amount of oxygen available is the main limiting factor for the carrying capacity of the ponds. Therefore, to maintain an optimal and efficient carrying capacity, it is essential to ensure that the pond’s dissolved oxygen (DO) levels are kept at a range of 5­6 mg/L.

In most production systems for ponds, the carrying capacity is limited by the oxygen supply, which is a complex issue in shrimp and fish ponds. There are some factors that contribute to oxygen supply, including photosynthesis, diffusion from the atmosphere, and the use of paddle wheel aerators. On the other side, some factors can simultaneously remove oxygen from the water, such as algae and bacteria respiration, shrimp crop respiration, and bottom sediment consumption. John said that this problem varies over time and place, making it even more complex.

“And the key challenge to you as shrimp growers is to get oxygen from the surface or from the water column down to the bottom because most of the time, the shrimp are going to be down there. You can have good oxygen in the water column, but down where the shrimps are, the oxygen is very low”, he added.

As technology and system production advance and improve, factors limiting carrying capacity are also reduced. According to John, in intensive and super­intensive systems, carrying capacity is limited by the accumulation of organic matter at the bottom of the pond due to high shrimp biomass and feed inputs. The accumulation of organic matter is closely related to water quality. Therefore, to maintain carrying capacity at this level, farmers must keep the pond bottom clean through regular water exchange.

“Because if you can remove that from the pond, then you can spare the oxygen that you’re adding from the aerators and

Table credit: John A. Hargreaves

Capacity of Shrimp Ponds: Factors to Consider

John Hargreaves

give it to the shrimp instead. So that’s why the operation of these central drains of these shrimp toilets to remove organic matter is so important because it reduces basically 50 percent of the feed oxygen demand”, he said.

Another strategy to maintain and increase carrying capacity.

Despite the limiting factors that affect the carrying capacity of shrimp ponds, there are several ways to maintain and increase their capacity, such as improved feeds, automatic feeders, multiphase systems, and genetic improvement. These ways of using technology to increase productivity are called “Technification” by John. He said that this package of technology was successfully adapted by Ecuadorian and Vietnamese farmers.

For instance, Ecuador has been using improved feeds that are much better than they used 10 ­ 15 years ago. The improved feed is then combined with automatic feeders to ensure that the shrimp are fed on a regular schedule, preventing overfeeding and reducing waste. Besides that, these feeders can be equipped with timers or hydrophones acoustic sensors that can detect the shrimp appetite and a feedback mechanism to ensure consistent feeding.

“So now we’re feeding not just once or twice a day but every 10 minutes. And not only does that improve growth rate and feed efficiency, but it also allows you to increase the feed loading because that load is spread out during the day rather than concentrated in one or two feedings”, he added.

The other two strategies for improving carrying capacity are implementing a multiphase system and genetically improved seed. Ecuador and Vietnam have successfully implemented multiphase systems in different ways. Multiphase not only

increases carrying capacity but also has other advantages, such as greater control over the production cycle, shorter production cycles, and better­prepared post­larvae for the grow­out phase.

“You can overlap the crops, you can get more crops per year, you get better survival and yield in grow out, you have better growth rate in the grow out systems because you’re stocking a larger animal, and it can just take off, and then you tend to have better feed conversion as well,” he revealed.

Implementing a one­phase grow­out system, which is a common practice in Indonesia, by stocking very small post­larvae not only increases the risk of cultivation failure but also leads to suboptimal utilization of pond carrying capacity. Essentially, it is equivalent to leaving the pond’s carrying capacity underutilized.

Here is a table that illustrates the productivity and carrying capacity of multiphase systems in Vietnam, which John A. Hargreaves resumed

Table credit: John A. Hargreaves

Just like improved feed, improved genetics also plays a vital role in increasing carrying capacity. To illustrate the effect of genetics, John suggested considering three different strains of shrimp that can grow faster due to genetic improvement. One strain reaches market size in just 50 days, another takes 63 days, and the last takes 75 days. Which one would you prefer?

“By using good genetics, you can effectively manage carrying capacity by having more crop rotations per year. Instead of only having three crops per year, you can have up to five. This means that you can reach your carrying capacity much quicker, allowing for more efficient and profitable shrimp production. That’s the idea behind using good genetics to improve carrying capacity”, he concluded.

Photo source

: John A. Hargreaves

Wet Market Seafood Expo Global

One thing that differentiates Seafood Expo Global in Barcelona from Seafood Expo North America is the sheer vastness of it. Thousands of exhibitors from around the world gather into Barcelona for this annual event in the hopes of gaining new business connections. For shrimp, it is an interesting forum as it gives us an opportunity to scrutinise the European shrimp market.

In the above order of volume. The question should be asked, where is Indonesia on that list? Unfortunately, Indonesia comes in a very distant 4th. The Indians supply much of the commodity vannamei, the peeled shrimp that goes into your standard 1kg bags. Ecuador does the valuable HOSO market that France treasures as well as the HLSO market in southern Europe. Vietnam absolutely dominates the value added market in Europe. How is each country able to carve out this niche for themselves? We look closer at each individual market segment.

The peeled market is the bread & butter of most European operations that do vannamei. This can be broadly categorised into 2 main areas, the bigger 16/20-26/30 that goes into mainly white table cloth restaurants, and the smaller 61/70 & up that serves as a cheaper alternative for

the coldwater shrimp & is used mainly in Northern Europe as “salad shrimp” or “shrimp sandwiches”. In this aspect, India is usually only strong in the first segment, the bigger sizes. Reason being is the same as why India has this market in the US, it’s much cheaper to grow a 16/20 in India than it is in Indonesia. As a result, India almost always wins in this segment. The smaller size “salad shrimp” is a much more interesting game. It should be noted that many European retailers struggle to find adequate supplies of this item. Most famers (worldwide) simply do not want to grow a small shrimp citing not just high fry costs but the opportunity cost of growing a big shrimp.

Ecuador’s foremost export form is HOSO & some HLSO. Up till recently, Ecuador had not been competitive in peeled shrimp. However it seems to have taken a turn as several importers have mentioned that for the first time ever they are able to afford Ecuadorian peeled shrimp. The HOSO market in Europe is limited to France, Spain & some niche Asian market. However, these 2 countries are also some of the largest seafood consumers in Europe. Due to Ecuador’s spe-

cialised production of HOSO, they are able to corner this market on price and quantity. The Italian market which consumes a large volume of HLSO is also dominated by Ecuador.

The value added market is an interesting proposition. We have seen many Vietnamese factories alter their production to specialise in value added going to Europe. With their limited volume, the Vietnamese know they are unable to compete with India & Ecuador (and even Indonesia) on the commodity items. As such they have themselves tried to move as far up the value chain as possible in order to remain competitive. This used to be the exclusive domain of Thailand but Thailand’s removal of the GSP system means that they 20% duty on Thai shrimp entering Europe makes it completely uncompetitive. Vietnam has shown no qualms about picking up the slack though.

Above are the general market segments in Europe. Indonesia has to find their own niche.

THE CRUST - MIDA

Break Time Seaside Kitchen Shrimp Kebab

Ingredients:

Shrimps 1 Kg (Size 50 counts/Kg or bigger)

Skewers

Olive Oil ½ cup

Garlic 4 cloves, minced

Paprika 1 teaspoon

Cumin ½ teaspoon

Cinnamon ½ teaspoon

Lemon Zest ½ teaspoon (Not lemon juice!)

Red Pepper Flakes ½ teaspoon

Salt and Pepper

Serves 4

April this year is an exceptional month for Muslims. They will go through a month of fasting leading up to their most significant holiday, Eid al-Fitr. So, for people who do or don’t celebrate this holiday, why not try a shrimp dish with a middle eastern flare to accompany you in this fasting season? Since the ingredients are simple, and more so is the cooking method.

How to Cook:

1. Peel your shrimp and clean it

2. Make the marinade by mixing olive oil with the prepared herbs. Remember not to use any lemon juice as it will react to the shrimp. If you want to add lemon juice, add it after you cook the shrimp before you eat it.

3. Mix your shrimp well with the marinade and let it rest in your refrigerator for about 30 minutes

4. When you’re done resting your shrimps, skewer them while you prepare your grilling equipment

5. Grill them for 3-4 minutes on each side

6. Plate it and enjoy

So, next time you have guests around, instead of serving a boring dish like a shrimp cocktail, instead try cooking this recipe and impress your guests!

Denny Leonardo Rizky Darmawan

Shrimp is love

Shrimp is life

The more I know, the more I realize how little I understand. So stay humble and keep on learning.

Cynthia Darmawan Gemilang Lim

I probably be up in the sky, deep in the sea, exploring the unknown, or building a shrimp farm

My secret to joy in life is in finding balance. Balance in family, sweating, and making decisions.

IN CRUST WE TRUST