Shrimp growers work to rebound following hard times
If you ever have occasion to fly to Punta Gorda from the Philip Goldson International Airport, the most striking sight you will encounter is neither the majestic mountains to the west nor the turquoise sea to the east. Rather, it is the hundreds of perfectly formed water filled rectangles that are carved out of the once continuous coastal plain. These are Belize’s shrimp farms. News Five’s Janelle Chanona reports.
Janelle Chanona, Reporting
Historically, Belize’s marine products came from the wild but as the catch by traditional methods has decreased, local and international demand for seafood has been met through aquaculture.
Over the last decade, investors in the industry have focussed on shrimp, tilapia and most recently, cobia.
Shrimp farming is one of the fastest growing aquaculture sectors in many parts of the world but in Belize, return on investments has been mixed. The rollercoaster ride began on top as initially, shrimp farming was poised to become Belize’s biggest foreign revenue earner, but disease and a severe drop in world prices crippled producers.
Nova Shrimp Farm, which accounted for almost half of Belize’s shrimp production, was the hardest hit and when the company collapsed at the end of 2006,
It resulted in the loss of more than twenty-five million dollars in revenue and left more than a thousand people jobless. The new financial reality hurt other producers and the industry which once boasted fifteen strong members, has been whittled down to just nine. Today the industry has recovered…
Alvin Henderson, Secretary, Belize Shrimp Growers Association
“But it’s been a process of those that survived. It’s been a process of those farms that have better capital structure, less debt and more equity and those farms that have better technology. Those are the farms that have survived really the difficult times, not to suggest we are completely of the woods.”
According to Secretary of the Belize Shrimp Growers Association, Alvin Henderson, while the years ahead will be challenging, the industry’s potential is vast. Even the downturn in the American economy has not hurt Belize as world demand is increasing.
Alvin Henderson
“The fact that we trade in U.S. dollars is helping us, it will help the export prices that we can achieve and also on a more global basis, the F.A.O. has warned that we have a serious concern globally where food production is not keeping pace with consumption. We have a number of elements merging together which are really going to be very difficult for the consumer. We have oil prices that are a record high, we have agriculture products that are a record high, not record high but certainly on the increase … another has to do with the fact that world production is being outpaced by world’s demand. So I see lots of elements that are beyond of borders Belize that auger well for what can happen in the shrimp industry.”
But Henderson is quick to point out that this does not mean investors should dive into shrimp farming.
Alvin Henderson
“The hopes that I have and the optimism that I share should not be construed as a reason to go and build more ponds; that’s not the case at all. It still goes back to the things I have identified which is: you have to be very mindful of your capital structure. If there is one focus I have now it’s ensuring that we further drive down our debt. Our investments have not been in increasing our farm size. Our investment has been in improving our technology and it’s come at a significant price. But by improving technology, we’ve been able to compete and that’s the point.”
While Belize’s shrimp has a reputation for being a quality commodity, producers in other parts of the world are proving to be stiff competitors. Lower labour costs translate into lower operating expenditure and cheaper shrimp. But Belize’s leverage is that its better management practices mean better shrimp—which means producers can demand higher prices.
Michael Bowen, Belize Aquaculture
“When everyone is trying to sell into the same niche market, not everyone is doing the same type of standards. They claim to be doing something they’re not and they can put a tag on their bag and try to sell it into these premium markets without actually accomplishing what they are supposed to be accomplishing. And that’s been the challenge so far because there hasn’t been any regulation so anyone can claim anything they want to claim.”
To change the status quo, the World Wildlife Federation is organising a series of Shrimp Aquaculture Dialogues. The sessions for Central American and Mexican farmers began today in Belize City.
Eric Bernard, Shrimp Dialogue Coordinator, W.W.F.
“There is room for improvement and by working all together, all stakeholders, producers, N.G.O.s, retailers, buyers, certifiers, national and international institutions we expect to have a consensus on better standards.”
Better standards will cement shrimp’s role as a huge player in food production and mitigate the negative side effects of the industry. The large tracts of land and water use have triggered concerns about the environmental and social impacts of aquaculture.
Yvette Alonzo, APAMO
“In the past agriculture, aquaculture or other industries have not really made the link with conservation and protecting the environment. So I think this is something very good and we’re glad to be a part of this and provide our input in terms of wherever we can, to make sure that there is that bridge between the environment and development. Our thinking is always that we need to have a balance in terms of development and the environment. So anything that looks at doing that, certainly we are prepared to take up the challenge.”
Michael DeShield, Director BAHA
“The industry is very responsible I think. And the fact that we have some legislation, the fact that we have regulatory oversight with what is imported, what is used on the farm and how they use it I think helps a lot so that industry regulatory partnership for me is very, very important so you have oversight of what they do.”
Janelle Chanona
“How much does that parlay into easier market access to EU and the United States?”
Michael DeShield
“That is the key because if you have a very good high quality product—and Belize shrimp is recognised for its high quality—can translate into more market access.”
While Belizean shrimp exports to the European Union and the United States are expected to be industry mainstays, an emerging global market cannot be ruled out in the future. Reporting for News Five, I am Janelle Chanona.
In addition to the sale of traditional frozen shrimp, some producers are also seeking higher returns by exporting whole fresh shrimp, both by air to Miami and by road to the tourist centers of Mexico.
