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June 2, 2014

Indonesia

100% Profit Margins Challenged

 

Pamindangan Farm (pamindagan@gmail.com, the talking shrimp farm), reports:

 

With reports of Indonesian shrimp farmers making profits of 100%, even after the recent price drop, I really wonder about the ability of some people to do basic arithmetic.

 

The cost of most shrimp feeds in Indonesia is up 20-30% since the end of 2012.  All aquaculture products ranging from the simplest calcium carbonate, calcium oxide and saponin to local and international brands of probiotics and vitamins have increased a minimum of 10-15%.  PL prices have gone up anywhere from 15-25%.  Aquaculture products such as paddlewheels and pond liners have also shot up due to the depreciating Indonesian currency.  The base price of electricity increased by 15% on a nationwide level earlier this year.  The price of diesel fuel price has jumped 22% since the middle of 2013.  Wages have followed a similar trend.

 

Is there a supply of free feeds and stolen electricity out there that I don’t know about?

 

A lot of the processing plants are not running at 100% capacity; some aren’t even at 60%.  Not all shrimp sizes are widely accepted, and the plants that do accept shrimp from farmers choose the sizes that they wish to buy.

 

Source: The Shrimp List (a mailing list for shrimp farmers).  Subject: Shrimp Prices.  June 2, 2014.

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