Thailand has an estimated 20,000 shrimp farms and about 300 commercial hatcheries varying in size and scope. In the wake of the early mortality syndrome (ems) outbreaks in 2011-2013, somewhere between 30 and 40 percent of shrimp farmers in Thailand went bankrupt or shut down production on their farms. Medium- and small-scale producers were especially affected by EMS. Two areas that were hit particularly hard were Chanthaburi and Songkla, where kilometers of abandoned farms were not uncommon. The country is slowly recovering from the outbreaks but is not expected to be able to reach the heights of before that time.
Nick Leonard of Rubicon Resources, a subsidiary of Canada-based High Liner Foods, is happy to share his vision on what is a likely scenario for the development of the Thai shrimp industry in the coming years, and suggests best practices he refers to as ‘Intensive 2.0’ farming as a way to produce high-quality shrimp.
Shrimptails: Nick, can you tell us something about Rubicon Resources In Thailand?
Leonard: Sure thing. Rubicon Resources is an integrated shrimp supplier in Thailand and other countries in Southeast Asia. We are one of the largest importers of shrimp into North America, and we partner with around a dozen facilities and over 1800 farms. Rubicon Resources builds customized supply chains and sourcing footprints that foster strong relationships between farmers and our customers.
Shrimptails: Clearly, the ems outbreaks have had a huge impact. Was this also true for Rubicon Resources?
Leonard: As global demand for shrimp began to skyrocket in the 1980s and ‘90s, shrimp-producing countries developed “intensive” farming methods. This method of farming, characterized by higher stocking densities and new technology, increased yields and led to many new farmers taking up the profession. High farm densities, stocking densities and shared water resources made farms susceptible to the spread of disease. This eventually led to the black tiger (P. monodon) collapse of the early 2000s.
Rather than addressing the environmental issues of intensive farming, farmers switched species to the more resilient white shrimp (L. vannamei). Faster growing and selectively bred, this kind of shrimp flourished and helped Thailand reach new highs in total production. But in 2011-2012, EMS first arrived in Thailand. Unsustainable farming methods, a lack of biosecurity, and weak genetics propagated the disease. EMS was devastating for the entire industry.
Rubicon Resources was fortunate enough to leverage several sourcing countries and regions within Thailand to reduce the impact this had on our customers. We managed to stay fully in stock during this difficult time.
Shrimptails: Can you share your view on the main changes in Thailand’s farming sector after the EMS outbreak?
Leonard: EMS caused Thai shrimp production to fall from a high of 603,000 tonnes in 2011 to a low of 263,000 tonnes in 2014. Although EMS has proved to be extremely trying, the upside has been the development of a more sustainable farming approach.
Farmers have learned that the key to producing high-quality shrimp and reducing the chance of crop failure is the development of best practices – what we call ‘Intensive 2.0’ farming. This includes the use of reservoir ponds, central drains, increased dissolved oxygen, probiotics, and advanced nurseries and breeding techniques.
Reservoir ponds provide a consistent and clean source of oxygenated and filtered water to a pond of shrimp. Intensive 2.0 uses advanced filtration systems, such as a central drain, which is characterized by a sump in the center of a pond and pipe to pump out waste. Paddlewheels on the surface of the pond help to spin pond water and aggregate waste in the sump.
Farmers are using more aeration technology in their farms to increase dissolved oxygen rates. Intensive 2.0 improves dissolved oxygen levels with wheel aerators and microbubblers preventing disease outbreaks and reducing stress experienced by shrimp.
Intensive 2.0 aquaculture uses probiotics to improve the health of shrimp. Bioflocs, groups of probiotic bacteria and microorganisms, naturally break down waste into harmless dissolved nitrogen.
Bioflocs also act as a natural food source for shrimp, supplementing their diet. Additionally, probiotic bacteria often outcompetes malicious bacteria. This reduces the chance of illnesses in ponds.
Intensive 2.0 is different from its predecessor by utilizing external nurseries. EMS typically hits within 40 days. Before Intensive 2.0, farmers would put all the juvenile shrimp into the pond directly. But by keeping them in an external nursery, farmers are better able to watch for signs of the illness. Intensive 2.0 shrimp aquaculture promotes advanced breeding strategies. The best way to prevent disease from the start is to use selectively bred, genetically superior post-larvae.
Furthermore, EMS has had a strong effect on the farming community of Thailand. We are moving into a new generation of farmers, which is of a different mindset than their parents’ generation. This new generation understands the importance of sustainable practices to maintain the health and consistency of the farm. They tend to be college educated and some have attended universities specifically to study technical shrimp farming.
Shrimptails: if Thailand increases its shrimp production, which markets do you expect to absorb the increased production volume?
Leonard: Due to rising farming and processing costs and a strengthening currency, Thailand is now pivoting towards the production of value-added products. Much of the shrimp grown in Thailand are used in products like frozen potstickers, soups, and meal kits. We are likely to see this trend continue.
China is likely to absorb some of Thailand’s increasing production volume. Recently, a larger share of Thai product is going to China: China’s shrimp production volume has decreased but their consumption rate has increased. Chinese buyers often approach our partner farms in Thailand offering high prices, great payment terms, and few supply chain requirements.
