An economic evaluation of shrimp farming industry in Taiwan. In : P.S. Leung, and C. Engle (eds.)

Abstract

During the past three decades, shrimp aquaculture in Taiwan has developed rapidly due to the combined efforts of private and public sectors. Taiwan has gained a worldwide reputation in aquaculture technologies. However, the growth of the shrimp farming industry has slowed down significantly in recent years. Shrimp farming is facing many problems and challenges. The purpose of this chapter is to assess economic aspects of the industry in the past decades and to identify some major factors affecting the economic performance and sustainability of shrimp farming. Based on the time-series data, the productivity of black tiger shrimp (Penaeus monodon) farming has decreased rapidly since 1988 due to serious disease outbreaks. Based on the farm survey data conducted during 1990-2001, the production characteristics and efficiency of resource use in the Taiwanese shrimp farming industry were examined. The profitability of shrimp farms varied from year to year and was affected by the level of production, farm price, and production costs. Taiwan has the highest cost of shrimp production in Asia. Decrease in production costs and increase in incentive structure and innovation in the culture industry are all very important for sustainable development of shrimp aquaculture. Factors affecting the sustainable growth of the cultured shrimp industry are also discussed. This information can be useful for other countries to develop appropriate technologies in order to improve the long-term sustainability of shrimp farming.