Shrimp Farming in China: Challenges and Innovations Amidst Market Changes

In recent months, the shrimp farming industry in China has faced significant challenges, especially with fluctuating prices and market demand. Regions such as East and North China have seen a price rise in white shrimp, ranging from 0.5-1 yuan to 2-3 yuan. However, South China, including the Pearl River Delta, is grappling with weak market demand despite a limited supply of market-ready shrimp.

Shrimp Market Overview

Shrimp farmers in South China are facing difficult decisions regarding the cultivation of winter shed shrimp. While some have already prepared their ponds, others are hesitating due to unpromising prices. For farmers like Cheng, who has over 30 acres of shrimp ponds in Jiangmen Xinhui, 2024 has been the most challenging year in terms of purchase prices.

Data from the Aquaculture Network confirms this trend. The price of white shrimp in 2024 is the lowest since 2017. For instance, the price for 30 shrimps per kilogram is 3 yuan cheaper than last year and significantly lower than in prior years. This sharp decline reflects a broader issue of sluggish market consumption, which extends beyond shrimp to other aquatic and agricultural products.

Increased Shrimp Farming Volume and Market Challenges

One key factor contributing to this situation is the steady increase in shrimp farming volume nationwide, particularly in Guangdong and Guangxi. The rapid development of small-shed shrimp farming has intensified competition. The simultaneous market entry of winter shed shrimp and small-shed shrimp in spring caused a price drop in the Pearl River Delta, making it the region with the lowest shrimp prices in China.

Innovation in Shrimp Farming: A Beacon of Hope

Despite these challenges, some farmers are adopting innovative approaches to improve efficiency and reduce costs. Cheng, for example, has integrated a 360-degree wind-feeding machine for shrimp farming developed by Foshan Zhongyu Technology Co., Ltd. into two of his white shrimp ponds. The results have been promising:

1. Increased Yield: The per-acre yield rose from the usual 1,100 kilograms to nearly 1,400 kilograms. The feed coefficient also improved, dropping to 1.1 from the typical 1.3.
2. Shortened Farming Cycle: Shrimp reached market specifications two weeks earlier than those in ponds using older feeding machines. Early harvesting not only reduces risks but also improves shrimp quality and market competitiveness.
3. Improved Feeding Efficiency: The new feeding machine employs a small-amount, multiple-meal feeding strategy. This method minimizes residual bait, reduces water quality deterioration, and ensures uniform shrimp growth.
4. Better Pond Management: With reduced need for animal protection products and enhanced dissolved oxygen levels, Cheng has been able to maintain healthier ponds.

Lessons for Shrimp Farmers

Cheng’s success highlights the importance of embracing technology and improving pond management to navigate market uncertainties. By focusing on cost-efficiency and reducing risks, farmers can adapt to the current “involution” of the shrimp market—characterized by intense competition and thin margins.

Future Prospects

While market conditions remain challenging, innovations like the 360-degree wind-feeding machine offer a pathway for farmers to enhance productivity and profitability. As Cheng aptly puts it, “When the price is good, you can sell shrimp. Even if the price is not good, you can wait to sell shrimp. There is more room for choice.”

The future of shrimp farming in China may depend on the industry’s ability to innovate and adapt to changing market dynamics, ensuring sustainability and profitability even in tough times.

·?LinkedIn:?Ocean Treasure World Foods Limited: Overview | LinkedIn

·?Facebook:?Ocean Treasure | Facebook

·?Instagram:?Ocean Treasure?|?Instagram photos and videos