Risk management strategies in fisheries management: a study from shrimp farms DEWAN ALI AHSAN. University of Southern Denmark

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1 Risk management strategies in fisheries management: a study from shrimp farms DEWAN ALI AHSAN University of Southern Denmark

2 Coastal shrimp farming Coastal shrimp farming is one the largest fisheries sector of the world especially in Southeast Asia and Latin America. The contribution of Bangladesh in global shrimp farming is nearly 6%. Nearly1 million people directly associated with shrimp farming and exporting activities. Shrimp farming is the third largest sources of foreign exchange earning. Bangladesh earns nearly 275 million Euros per annum by exporting frozen shrimp to EU countries, America and Japan.

3 Table: Shrimp farm production (Mt)of Bangladesh Year Production 19,489 20,335 23,530 28,302 34,030 46,223 79,020 88,018 90,076 92,448 93,014 97, , , , ,923

4 Table: Export frozen shrimp from Bangladesh Year Source (DoF, 2007) Quantity (Mt) 19,224 22,054 26,277 25,225 25, ,30 201,27 285,14 297,13 302,09 368,64 429,43 465,33 493,17 Value (million Euros)

5 EU markets Small Entrepreneurs Middle men Shrimp farms Medium Ponds Large Ponds Fig 1 : Production and marketing channels of shrimp in Bangladesh

6 EU Ministry of fisheries DoF Entrepreneurs Middle man Shrimp farms Fig 2 : Relation and coordination among different groups

7 Shrimp farming zone: The total production area is projected around 170,000 ha 135,000 ha ( 80% of total area) in Khulna, Satkhira and Bagerhat districts and nearly 35,000 ha in Cox s bazar districts (DOF,2006). There are approximately 38,000 farms cultivating shrimp. The average farm size is 4.5 hectares although more than 50% of farms are now less than 1 hectares Tiger shrimp ( Panaeus monodon) is mostly cultivated in coastal zone of Bangladesh.

8 Fig 3. Coastal shrimp farming zones in Bangladesh (Isam,2003)

9 Shrimp culture system Extensive and semi-extensive cultural techniques have been followed in Bangladesh. Intensive system the density of PL is very high. It requires very high input and gives larges output. It requires small piece of land in comparison to extensive farming. Intensive culture is common in Thailand, China and India.

10 Coastal land management Anyone can start shrimp farming. They can convert the agricultural land into pond by making dyke, polder etc. No need for permission Fig 4: Shrimp farm in coastal zone No license fee or tax is required.

11 Pressure on Mangrove ecosystem 10,000 ha of mangrove has been destroyed within four decades PL (post larvae) collection from wild stock is depleting the biodiversity 40% PL die from the time they are caught to the time they are stocked to pond Fig 5. Sundarbans mangrove forest

12 Thosands of women and childrean are engaged in PL collection in Sundarban estuary PL (post larvae) collection from wild stock is depleting the biodiversity Fig. 6: PL collection 40% PL die from the time they are caught to the time they are stocked to pond Government declared total ban of PL collection in 2000.

13 Soil degradation and change in soil properties Salinity and acidity of shrimp pond soils and surrounding agricultural land has been increased Rice production has been decreased due to increased salinity and acidity. High salinity and acidity are also unfavorable for the aquatic species of paddy grounds as well The dual culture land ( rice in dry season and shrimp in rainy season) now is using only for mono culture

14 Social conflicts The outsiders (rich people) and their local allies became the owner of large shrimp farms. Large number of small rice farmers also handed over their lands to them (by selling or giving them lease power). If the farmers are not interested to give them property right, the outsiders forcefully capture the land (by threatening, killing, harassment). They also grasped the public wetland land by having long term lease ownerships

15 Large number of local small and medium scale rice farmers also started shrimp farming since 1990 s. A number of coast agricultural lands have been converted into shrimp ponds even without the consent of surrounding land owners.

16 In 1986, government issued an order to solve the problem. No one can start shrimp farming without the consent of 85% of local land owners and it must ensured that such farming should not affect the adjacent agricultural land by seepage of saline water ( Ahmed et al,2002). But no one shows respect to that order as there is no monitoring system.

17 Research gaps No earlier studies have been conducted to identify and assess different types of risks ( production, financial, marketing and so on) associated with shrimp farming and marketing in Bangladesh. No study has been conducted to find out the Total Economic Value (TEV) of shrimp farming. Social cost of shrimp farming is also to be ascertained. The relative lack of information about farmer s and exporter s risky environment and their reactions to it means that there are few useful practical insights for policy makers, farm advisers, and researchers

18 Objectives of the study Identify the risks and uncertainties associated with shrimp farms Shrimp farmers risk perceptions and risk management responses. The result will be compared with Danish farmers risk perceptions Shrimp exporter s risk perceptions and risk management responses Assess the probability of introduction of crop insurance and forward trading as tools of risk management Farm and farmer characteristics related to the risk perceptions and strategies.

19 Materials and methods The present study will use a descriptive approach. Data collection The data will be collected as a part of a larger questionnaire survey of risk and risk management in shrimp farming. Data analyses All computations would be conducted using the standard statistical program package. Trust game: Trust game methods will be used to as a technique to measure the risk attitude and behavior of the shrimp farmers.

20 Expected out put From the present study the following outcomes are expected; it will give a clear understanding of the various risk factors associated with shrimp cultivation and exportation; the study will also give the idea about the shrimp farmers and exporters perceptions about the risk and the way they tackle those factors; a more clear insight about the shrimp farmer s and farms characteristics accordance with risks will be obtained; the present study will also expected to provide with appropriate policy recommendations capable of mitigating various problems associated with risk.

21 Thank you Suggestions!!!