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November 27, 2013

Indonesia

Dilemma on Stocking Levels

 

Indonesian shrimp farmers are facing a dilemma over stocking densities, as they try to increase production to cash in on increased demand and prices—while protecting themselves from early mortality syndrome (EMS).

 

Sutanto Surjadjaja, managing director of CP Prima, the largest shrimp farm in the world and part of Thailand’s CP Group, said he made the decision to limit stocking levels in order to prevent disease, adding,  “We could increase volumes by 50 to 60 percent, but to do that we’d have to increase stocking densities and thus the risk of disease."

 

Surjadjaja said CP Prima hopes to produce 42,000 metric tons of shrimp next year, up from the 36,000 tons expected in 2013.

 

More than half of CP Prima’s exports go to the United States, while 25 percent go to the European Union and 20 percent to Japan.  CP Prima is looking to build sales in China, but it is currently concentrating on the value added products that it launched last year to capitalize on economic growth in its domestic market, where it markets, shrimp cutlets, shrimp rolls, ebi fry and shrimp nuggets.

 

Scale and its integrated business model are both key to CP Prima’s success.  It is one of the few fully integrated shrimp firms in Indonesia.  The business model helps the firm secure western certification and higher end clients for its products.  “Achieving any of the certification programs is easier since we run our own feed mill as well as farming and processing operations,” said Surjadjaja.  “We are not targeting the mass market, we are seeking the premium market.”

 

Source: SeafoodSource.com.  Editor, Sean Murphy (smurphy@divcom.com).  Indonesia Shrimp Firm Faces Dilemma on Stocking Levels, Pricing.  Mark Godfrey  (SeafoodSource contributing editor reporting from Beijing, China).  November 27, 2013.

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