ASMP contributes to save the foreign exchange through the SL Shrimp Industry

High development through technology transformation

Focused area are Puttalam and Batticaloa Districts

The Agriculture Sector Modernization Project has taken initiatives to develop the shrimp farming industry in Sri Lanka with the key objective of saving the foreign exchange. The Sri Lankan Shrimp farming started as an industry in the 1980s. Due to the demand it had as a food product, the industry had a rapid expansion between 1992-to 1996 with a lucrative earning while the production reaching its peak from 8000 to 9000 kg/ha/yr.

In this development, small-scale production operations around 0.5-1.0 ha had established on encroaching lagoons, reservations and other ecologically sensitive areas without having proper licenses. By 1998, the total area under farming reached around 4,500 ha.

In the meantime, there was no introduction of proper policy framework and its implementation as a result of which the rapid development culminated to 47% due to poor environmental planning and poor bio securing measures. Accordingly shrimp farming became illegal establishments operating without proper licenses.

When a disease identified as “white spot” spread over 90% of shrimp farms, the industry totally collapsed recording a 100% mortality. Hence, the industry was characterized by volatile boom-and-busts, with unsure conditions caused by multiple disease outbreaks. However, from 2010, the shrimp industry has been in slaw development with the initiatives taken by the National Aquaculture Development Authority of Sri Lanka and the National Aquatic Resources Research and Development Agency.

The Sri Lanka Aquaculture Development Alliance had requested for a grant from the Agriculture Sector Modernization Project, Value Chain Development Program to develop the shrimp industry in Sri Lanka together with the relevant private and government stakeholders. Meanwhile, the Agriculture Sector Modernization Project (ASMP) formulated a model to adopt Best Management Practices for a sustainable shrimp farming industry. The focus areas are Puttalam and Batticaloa Districts.

The main areas focused by ASMP to support the Shrimp industry.

1.    To address common sector issues for sustainable shrimp culture.

2.    To establish bio security measures of farms and hatcheries.

3.    To upgrade shrimp hatcheries to B+ grade (hatchery grading standards introduced by NAQDA) to produce high quality post larvae (PLs).

4.    To resume production after disease (White Spot Syndrome Virus – WSSV)

5.    To introduce Specific Pathogen Free (SPF) shrimp variety, “Penaeus monodon”, (the giant tiger prawn) which prevent vertical transmission of the virus.

6.    To strengthen technology transformation

7.    (SPF brooders, HDPE lining, Nursery ponds, High density farming, A new shrimp species “Vannamei”, was introduced along with high density farming technology.)

8.    To create linkages among small shrimp farmers, processors and exporters.

9.    To align with national strategies of NAQDA (nauplii centers and nurseries).

10.  To increase foreign exchange

This project by ASMP benefits small scale farmers who are not able make large investment since they have already obtained loans for their farming previously. Accordingly these farmer are able develop their farms according to the basic bio security requirements such as using nets, fences, water storage for pretreatment of water, uninterrupted electricity supply and use of High-Density Poly Ethylene (HDPE) as pond lining to minimize horizontal spreading of diseases and maintain water quality for high density farming whilst minimize seepage losses. Furthermore, sufficient ventilation is provided by using paddle wheels to prevent the shrimps from being stressed.   

High density and super high-density SPF Nauplii centers have been developed under large-scale projects. The first center in Sri Lanka was established with polychaeta production with support of ASMP. This project boosted the investments and enabled the companies to invest in large scale projects in shrimp hatcheries which could not have been possible for another 10 years. This facility can produce 10 million nauplii per day.

ASMP shared the risks in investing for large-scale projects with higher returns by encouraging investments between Rs. 100 million to Rs. 400 million. Simultaneously, hatcheries were developed to grow the SPF Nauplii brood stock. Poly kit feed was also developed thus. The shrimp sector value chain primary needs were holistically addressed with the ASMP grant scheme

As a part of the project a shrimp processing factory was in order to ensure the continuous supply of shrimps for the international market. This has the capacity to process 20 MT per day. This high-end facility also caters to the storing and blast freezing of shrimps for the export market.