China’s growing demand for imported shrimp is prompting one Malaysian shrimp farmer to seek a Chinese buyer for the leasehold on a 31-pond shrimp farm in Malaysia.
Benjamin Saw wants USD 300,000 (EUR 267,000) for the operation, currently run by his firm, Arus Nagamas Private Limited. The figure includes USD 90,000 (EUR 80,000) worth of assets and a land rental deposit for the 80-acre site in the Kota Kuala Mudah region.
According to Saw, demand and prices paid for Malaysian shrimp have been on a steady increase from around MYR 20 (USD 4.86, EUR 4.32) per kilogram 10 years ago to RM 30 (USD 7.30, EUR 6.49) per kilogram today for tiger prawns at 25 grams apiece, or 40 pieces a kilogram.
The farm’s eight-year lease comes with a monthly rent of USD 4,400 (EUR 3,910). Saw says he spent heavily on infrastructure on the farm including piping, wiring, excavation, and restoration. He’s quitting the site in order to return to his family’s shrimp farm, run by his father.
“The majority of tiger prawns are for the export market and are traded in U.S. dollars. When the U.S. dollar goes up, the prices of shrimps will go up as well,” Saw told SeafoodSource. “Based on my experience, the prices normally take a dip around year-end and start to rise again around the start of the year. The possible explanation for the price drop is due to farmers aiming to harvest just before the monsoon season, around October, which causes the shrimp prices to drop around November and December due to high supply.”
Saw said he foresees a good outlook for local shrimp farmers.
“Despite the new outbreak of diseases that have been affecting the shrimp industry globally, Malaysia's shrimp farms are still located in low-density areas, unlike in Thailand, where hundreds of farms are concentrated around each other, which makes the transmission of diseases more prevalent,” he said. “On top of that, based on my own experience, the infrastructure available for shrimp farming in Malaysia is very good from SPF [specific pathogen free] post-larvae hatcheries to the latest equipment and software tailored for aquaculture. Due to Malaysia being a relatively low-density Southeast Asian country, prawns produced from Malaysia are less likely to be contaminated with chemicals and toxins from nearby commercial factories.”
It’s not hard to find land in Malaysia for shrimp farming – so long has you have experience in the domestic industry, Saw said.
“Most land for shrimp farming [is] not marketed online or by land agents. It is through word of mouth from suppliers to harvesting companies who will help you spread the word if you want to buy or sell a shrimp farm,” he said. “Most land for shrimp farming in Malaysia is located in mangrove swamp areas and the majority of the land is either owned by 'bumiputeras' [land reserved for ethnic Malays] or by government-linked companies.”
The shrimp farming industry in Malaysia is mainly run by ethnic Chinese like Saw. As a non-ethnic Malay, he cannot own the land he farms on, so he must lease it from a 'bumiputera' company.
“If you lease through government-linked companies, the lease can be up to 30 years and eligible for a renewal of another 30 years, but most of these land are still virgin mangrove jungle, which requires deforestation,” he said. “That is why I chose to take over an abandoned farm which did not require much clearing of the precious mangrove swamp.”
Saw said the farm he’s been renting had been abandoned for a very long time and he spent a year cutting down trees and rebuilding the perimeter fence, which is around three kilometers long.
“I did extensive re-excavation work for seven ponds and in-pond wiring. We have also constructed two bridges for each of the seven ponds. Major wiring has been done to most of the 31 ponds plus road repair by excavation,” he said.
Alongside the lease and equipment, Saw is also selling off his data, which includes the farm daily parameter tracking and lab tests that has been done on the farm.
“Basically, the new buyer can start almost immediately. Aside from vannamei- and monodon-type shrimp, the site is also suited for barramundi, tilapia, milkfish, and grouper," he said. "Also, we have a freshwater inlet, so it’s also possible to farm rosenbergii-type shrimp [giant freshwater prawn].”
