Shrimp in Indonesia

According to the FAO (2018) shrimp production reached 637,555 tonnes in 2016 making Indonesia the second largest shrimp producer in the world after China according to FAO aquaculture production statistics. Yet, VASEP figures indicate that Vietnam has already surpassed Indonesian production. The latest, official figures from the Ministry of Marine Affairs and Fisheries (MMAF) were a bit lower, 535,000 tonnes in 2015, which is said to be on the optimistic side. MMAF set the production target for 2017 at 676,000 tonnes, but official figures are not yet released. While almost all semi-intensive farmers have shifted to the production of Litopenaeus vannamei (whiteleg shrimp) which now accounts for more than 75% of total shrimp production, farmers which use extensive mono- and polyculture ponds still grow Penaeus monodon (black tiger shrimp).

Cultured shrimp exports accounted for US$ 1.7 bln or close to 175,000 tonnes (processed weight, including exports of wild shrimp) in 2017. The US, Japan, and the EU make up for approximately 91% of the export markets in terms of volume. Exports are dominated by large players like CP Prima, BMI, and Sekar Bumi. However, many smaller exporters also contribute significantly with smaller volumes, including companies like PT. ATINA and PT Istana Cipta Sembada. View company profiles of shrimp exporters in our supplier database.

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Shrimp production and export statistics

Species wise production

Source: Figures from 2012 to 2015 are from MMAF (2016) and 2016 are from the FAO (2018). MMAF set the production target for 2017 at 676,000 tonnes, which are in reach according to government prediction although official figures have not been reported yet.

L. vannamei was introduced in Indonesia in 2001 after which a rapid transition took place and nowadays almost only farmers with more extensive

production systems continue to grow P. monodon.

In 2014 Indonesia was still the world's second largest producer of L. vannamei after China, but has been replaced by India and Vietnam in 2017, and Ecuador is bridging the gap. In terms of P. monodon production Indonesia is currently the second largest producer in the world after Vietnam, since Indian farmers massively shifted to the production of L. vannamei in the last couple of years. The Global Aquaculture Alliance predicted that shrimp production in Indonesia would continue to grow with a growth rate of over 20% between 2015 and 2017.

Production by region

Source: MMAF (2016)

L. vannamei production by large corporate farms is concentrated in Lampung, East Java, Nusa Tenggara (all islands between Bali and East Timur) and some small pockets in South Sulawesi. Small scale L. vannamei producers are found in different parts of Java, Sulawesi, Nusa Tenggara and Sumatra. The increase in production between 2011 and 2015 is mainly taken account for by Nusa Tenggara (100%),

Java (100%) and Sulawesi 70%).

P. monodon production by large corporate farms is concentrated in East Kalimantan. In some cases Japanese companies have invested in farming themselves in order to secure supply of large size natural P. monodon. Small scale P. monodon farmers exist in East Java and some pockets in South Sulawesi and Sumatra. Some small scale farmers combine the production of P. monodon with fish (especially milkfish (Chanos chanos)). Others have larger extensive trap and hold ponds in which they add additional P. monodon PL.

'Other' comprise the islands Maluku and Papua.

Shrimp export markets

Trade Map (2018), International Trade Centre, intracen.org

Shrimp export data in Trademap include exports of wild shrimp but we assume that this only represent a small part of total shrimp exports. Overall shrimp exports have remained relatively stable from 2014 to

2017, even though production as well as export value has increased; 137,170 tonnes of exports in 2010 valued US$ 1 bln, while production only increased 50,000 tonnes between 2010 and 2014, this increase held double the value in 2014 (US$ 2 bln). In 2015 the prices dropped again with 23% compared to 2014; with export volume remaining the same. Growth in export value picked up again slightly from 2015-2016 and 2016-2017.

Indonesia currently dominates the United States’ shrimp market, as it is not confronted with anti-dumping duties which the United States has put on competitors in several other Asian countries (India, China, Thailand and Vietnam). As a result, the 40,000 tonnes increase of exports between 2010 and 2017 is almost entirely taken account for by the United States.

In Japan, its second largest market, Indonesia is the fourth largest shrimp exporter mainly supplying P. monodon (and wild) shrimp after being replaced by India. Exports to Japan have been shown a slight increase from 29,639 in 2016 to 30,272 tonnes in 2017. Japan primarily imports P. monodon from extensive production systems, both value and non-value added products.

In the EU, its third largest market, Indonesia is only the seventh largest supplier of exotic shrimp due to the fact that Indonesia does not enjoy GSP status and has not yet engaged in a Free Trade Agreement with the EU. This makes it difficult for exporters to compete with countries such as Ecuador and Vietnam for L. vannamei, and Vietnam) and Bangladesh for P. monodon.

Export products in 2017 (tonnes)

Trade Map (2018), International Trade Centre, intracen.org

The majority of shrimp exports is shipped as frozen, which includes very basic value-addition like peeling, tails and heads off etc. Value added products constitute ready to eat products. The export share of

frozen shrimp products increased in 2017 from 75% to 82%.

Compared to e.g. India and Ecuador, Indonesia exports a relatively large share of its shrimp as value added products. It's main competitors for value-added products are Vietnam and Thailand. However, as the Thai shrimp sector is still facing significant raw material shortages and Vietnamese exporters are confronted with anti-dumping duties, Indonesian exporters are in a good position for value-added exports to the United States.

In terms of sizes, Indonesia focuses its L. vannamei production on smaller sizes. Stocking densities in Indonesian farms are high. The high risks that farmers take result in relatively early harvests. This results in exports of relatively smaller sizes than exports from e.g. India or Ecuador. For the smaller sizes Indonesia competes mainly with Thailand and Vietnam.

Certifications

Last updated: 01/10/2018

  • Aquaculture Stewardship Council (ASC)

    # Farms 6
    # Farms in assessment 2
    # CoC partners 2
    Total volume (MT) 12,281
  • Best Aquaculture Practices (BAP)

    # Farms 32
    # Hatcheries 6
    # Feed mills 4
    # Factories 33
  • GLOBALG.A.P.

    # Farms 3

Production systems

Supply Chain

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Risk assessment

Environmental risks

  • Located in critical habitats
  • Effluent of waste water
  • Disease outbreaks
  • Mangrove deforestation
  • Escapees of non-endemic species

Social risks

  • Debt traps
  • Child labour
  • High dependency on middlemen

Quality and supply chain risks

  • Lack of traceability for shrimp from small scale producers
  • Long supply chain with multiple owners of the products
  • Unhygienic conditions and lack of cold storage facilities

Species in Indonesia

Click on the species and find out more about the species in Indonesia

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