FOURTH FISHERIES
PROJECT
Funded by IDA / DFID / GEF and GOB
Status of the shrimp hatchery and nursery operations in Bangladesh
An output of the Shrimp Action Plan funded by the Department For International Development
By Md. Nuruzzaman, the Shrimp and Coastal Aquaculture Component, Fourth Fisheries Project
October 2002
Project Management Unit, Department of Fisheries, Matshya Bhaban, Ramna, Dhaka 1000
Tel: 9554716, 9560543, 9560525.
Table of Contents
EXECUTIVE SUMMARY ........................................................................................................................................... I
1. INTRODUCTION .....................................................................................................................................................1
2. OBJECTIVES OF THE STUDY..............................................................................................................................1
3. BACKGROUND TO SHRIMP HATCHERY DEVELOPMENT IN BANGLADESH ......................................1
3.1 THE GROWTH IN DEMAND FOR POST LARVAE .........................................................................................................1
3.2 SELECTION OF INITIAL SITES FOR HATCHERIES IN BANGLADESH ............................................................................1
3.3 THE EMERGENCE OF THE PRIVATE SECTOR.............................................................................................................2
4. NUMBER OF HATCHERIES AND PRODUCTION CAPACITY ......................................................................2
4.1 NUMBER OF HATCHERIES .......................................................................................................................................2
4.2 PRODUCTION CAPACITY .........................................................................................................................................2
4.3 GROWTH OF SMALL HATCHERIES IN THE KHULNA REGION ....................................................................................3
4.4 COMPETITION FROM WILD SUPPLY OF POST LARVAE ..............................................................................................3
4.5 GOLDA PRODUCTION .............................................................................................................................................4
5. INVESTMENT STATUS ..........................................................................................................................................5
6. HATCHERY PROCESSES AND TECHNICAL KNOW-HOW ..........................................................................5
6.1 PROCESSES.............................................................................................................................................................5
6.1.1 Bagda ............................................................................................................................................................5
6.1.2 Golda.............................................................................................................................................................6
6.2 PRODUCTION COSTS ...............................................................................................................................................6
6.3 TECHNICAL KNOW-HOW ........................................................................................................................................7
7. QUALITY CONTROL .............................................................................................................................................7
7.1 THE NEED FOR CERTIFICATION ...............................................................................................................................7
7.2 CURRENT MEASURES BEING TAKEN TO IMPROVE PL QUALITY ...............................................................................7
8. BROOD SHRIMP COLLECTION ..........................................................................................................................8
8.1 EXISTING PRACTICES .............................................................................................................................................8
8.2 EMERGENCE OF SPECIALISED BROODSTOCK SUPPLY SERVICE ................................................................................8
9. DISTRIBUTION SYSTEM ......................................................................................................................................9
9.1 SUPPLY CHAINS......................................................................................................................................................9
9.2 CREDIT AND COMMISSION SYSTEM ........................................................................................................................9
9.3 TRANSPORT OF PL .................................................................................................................................................9
9.3.1 Air transport ..................................................................................................................................................9
9.3.2 Road transport ............................................................................................................................................ 10
10. CO-ORDINATION OF THE HATCHERY SECTOR ...................................................................................... 10
11. ROLE OF RESEARCH ORGANISATIONS ..................................................................................................... 10
12. FARMING PRACTICES ...................................................................................................................................... 10
12.1 BAGDA............................................................................................................................................................... 10
12.2 GOLDA ............................................................................................................................................................... 11
13. NURSERY OPERATIONS................................................................................................................................... 11
13.1 CURRENT STATUS .............................................................................................................................................. 11
13.2 ECONOMICS OF NURSERIES ................................................................................................................................ 12
13.3 SCOPE TO ENGAGE FRY CATCHERS IN NURSERY OPERATIONS............................................................................. 12
13.3.1 Opportunities for establishing small scale nurseries ................................................................................ 12
13.3.2 Past experience ......................................................................................................................................... 13
14. CONCLUSIONS AND RECOMMENDATIONS ............................................................................................... 14
15. REFERENCES ...................................................................................................................................................... 17
Executive Summary
In Bangladesh, post larvae (PL) are derived from either hatchery or from wild sources. In the case
of bagda, 50% is derived from fry collectors and 50% from hatcheries. In respect to golda, 90%
of the PL is derived from wild sources and 10% from hatcheries. Wild sources are still preferred
by farmers as many believe that wild PL have a higher survival rate and as a result the wild fry
market generates higher sales than the hatchery supply due to the higher unit price. Between
1500-2000 million PL valued at Tk1742 million are still collected from the wild. The sale value of
hatchery PL is estimated to be Tk1006 million.
Commercial shrimp hatchery operations are fairly a recent development in fresh water and
brackish water aquaculture in Bangladesh. There are currently around 45 Bagda shrimp
hatcheries, 39 of them along the Cox’s Bazar beach, the remainder inland. A number of small
scale Bagda hatcheries are located around the country adjacent to river banks. There are also 34
fresh water prawn (Golda) hatcheries scattered across the country. Golda hatcheries do not require
such proximity to the sea because seawater can be transported to the hatchery and recycled over 3
to 4 cycles of operation.
The development of new Bagda hatcheries (45 hatcheries) and increasing production capacities by
existing hatcheries in the Cox’s Bazar region have caused the overall production capacity for
Bagda PL to exceed demand (production capacity for Bagda stands at 6000 million PL per year
compared to a demand of 3000 million). The hatcheries responded to this overcapacity by
introducing quotas but a lack of unity within the industry led to the breakdown of the quota
system this year. Moreover buyers in the farming areas were highly critical of moves to
artificially lower the supply. This year production was between 2500-2750 million PL as several
hatcheries suspended production due to a fall in the market price. The solution lies in
rationalisation of the hatchery sector and better co-ordination and dissemination of market
information. Moreover, excess capacity needs to be diverted into Golda production where
possible using the existing expertise within Department of Fisheries.
There is an acute shortage of Golda PL due expanding culture activities with more than 90% of
the demand deriving from wild sources. Out of 35 hatcheries producing Golda only 15 were
operating and on average each hatchery was operating at only 13% of its capacity. The cost of
Golda PL this year was three times higher than for 2001 and three times higher than Bagda PL.
Hatchery PL is only marginally cheaper than wild PL. The Golda PL production process is more
difficult due to the lower fecundity, longer rearing cycle and smaller marketing lots but the price
differential is three times higher than for Bagda PL.
The production costs for hatcheries are high particularly in Cox’s Baxar ranging from Tk100-270
per 1000 PL. Salaries for foreign technicians are often linked to production rather than profits
which encourages the use of high cost inputs to maximise production. A number of small scale
hatcheries have been established within the shrimp producing areas in Khulna, Satkhira and
Bagerhat districts with production capacities of around 2-5 million PL per year. These hatcheries
have lower production costs and higher PL survival rates from rearing under local conditions and
reduced transport times. These hatcheries also benefit from direct links to farmers although they
have to bring brood shrimps by Sea Plane and saline water from deep sea by barge.
The sector is constrained by a lack of quality control and poor management practices. Except the
early investors (10 – 15 hatcheries set up before 1998), the performance of many hatcheries has
been poor. The disease problems in the shrimp industry began with imported PL. Since then
i
shrimp farmers regard hatchery produced PL as the main source of disease infection in their
farms. In practice, outbreaks of disease are more likely to be a result of poor pond and water
management on farms. However, quality assurance of PL through a certification scheme is needed
to restore confidence in hatchery produced fry.
Brood shrimp collected from the wild and the resulting PL produced from hatcheries are not
screened for disease. Procedures for ensuring the quarantine of brood shrimps and screening for
disease in PL and brood shrimp (using PCR techniques) are urgently needed. The approximate
cost of a PCR laboratory is between Tk.2-3 million. Improved methods for harvesting brood
shrimp from the sea using trammel net1 instead of trawl nets are also required to increase survival
rates and reduce the impact of trawl nets on breeding grounds. Existing methods of harvest should
be phased out.
Currently the only source of shrimp broodstock for hatcheries is from the wild. Indiscriminate
trawling for shrimp is likely to threaten stocks although a lack of survey data precludes a more
accurate stock assessment. Enforcement of the current ban on shrimp trawling from 15th January
to 15th February is considered to be important to conserve wild stocks and ensure the supply of
broodstock. The legislation is currently in abeyance following an injunction from the High Court
in 1995 after a writ petition was filed by the Bangladesh Marine Fisheries Association. Wild
stocks are also under pressure from the collection of wild fry and the use of set bag nets (with
mesh sizes smaller than 45 mm mesh size at the cod end prohibited under Fish Act) in the juvenile
fishery.
Hatchery fry is usually flown from Cox’s Bazar to Jessore and then transported by truck to the
main shrimp producing areas. The transport costs vary from Tk30 per 1000 PL for road transport
to Tk50 per 1000 PL for air freight. Higher mortalities occur during road transport (20-30%)
compared to air (5-10%) but some hatcheries send PL by road in mixed batches with wild PL to
secure higher prices.
There are too many intermediaries in the fry supply chain (agents receive 10-15% commission
and intermediary vendors mark up 20-30% before selling to farmers). Intermediaries in the fry
marketing chain extract considerable amounts of revenue from the supply chain for money
lending operations. A reduction in the number of intermediaries would facilitate greater linkages
and contact between hatcheries and farmers and ultimately lower prices at the farm-gate. The
smaller hatcheries, in Cox’s Bazar and Khulna and a few of the larger hatcheries market fry
directly to the farmers. The use of field agents in the farming zones and the establishment of
transit nurseries by hatcheries are regarded as positive developments. These agents are able to
determine the demand for PL from farmers well ahead of time and adjust production to match
demand.
There is weak governance and poor co-ordination within the hatchery sector. The absence of
traceability in particular encourages bad practices such as lack of disease prevention and control,
poor care of broodstock, sale of underage fry, poor acclimation and mixed packaging with wild
fry. Shrimp farmers lack the necessary information on the condition of PL at the point of sale due
to an absence of labelling. The PL bags should be labelled with the batch number, number, age,
time of packing, water salinity, pH, hardness etc. These should also include clear instructions
about handling and acclimation procedures for the range of salinities and temperatures found in
farmers’ ponds throughout the producing zones in Bangladesh. The expected survival rate under
1
Trammel nets when correctly operated have been shown to be less stressful for brood shrimp
ii
standard conditions should also be stated and hatcheries should encourage buyers to provide
feedback to the company about the survival of PL following stocking.
Given the inherent potential of the shrimp industry in Bangladesh, very little research work has so
far been carried out. The development of farm raised brood and handling of wild brood shrimp is
critical to the seed supply system. The BFRI, research organisations and universities need to be
more closely involved in addressing the research needs of the industry.
Extension support for farmers remains weak due to the limited number of extension workers in
the field. Extension of Good Management Practices on selecting and testing for viable PL, PL
acclimation, stocking density, post stocking monitoring of growth and survival are required to
increase shrimp production in extensive systems.
There is good potential to establish PL nurseries in the shrimp producing areas especially Khulna,
Satkhira and Bagerhat districts. PL reared in nurseries have higher survival rates and increase
production efficiencies for farmers. Nurseries can be operated cheaply rearing PL under ambient
water conditions with natural feed. The small number of existing nursery operations suggest
substantial potential for growth. The question is whether it is feasible for the extreme poor
involved in fry catching. The key requirements are access to land/water and markets, expertise
(technical, marketing and enterprise management), and capital along with organisational support.
In addition, farmers need to be encouraged to develop their own nursery areas within their ghers
to reduce losses from predation.
The potential for engaging fry collectors in developing an extensive network of small-scale
nursery operations diminishes as the sector enlarges. Once others have moved in and become
established in nursery operations it will be difficult for fry catchers to compete. An early
intervention is required to enable the operators to establish links with farmers and traders.
The main shrimp producing areas in the south west and are likely to be the most appropriate place
to establish a network of nurseries with fry catchers particularly considering Department of
Fisheries and MOFL are considering introducing a complete ban on fry catching in the
Sunderbahn area. The NGO network in south west Bangladesh is extensive and easily capable of
working at the grass roots level with fry catchers although some capacity building is necessary.
Previous trials by the Bay of Bengal Programme illustrate the vulnerability of carrying out aquatic
based small enterprises in the coastal zone to, natural calamities (a severe cyclone destroyed the
cages in one year), and fluctuations in market conditions (price varies according to wild supply
from year to year). The internal rate of return was shown to be highly sensitive to variations in
selling and buying price. Maintaining survival rates of 80% is also considered important
highlighting the need for robust technology. The profits were not sensitive to investment cost
suggesting the technology could be viable for small scale operators.
Trials with Bagda were less successful than with Golda. This could be attributed to the
undeveloped cage technology which has substantially improved since the trials in 1994. Sites
were also poorly selected, cages were set in a river were exposed to strong currents. The supply of
hatchery fry was also limited at this time ensuring a reliance on wild fry (that require less
nursing). Probably the most important factor was the low selling price of nursed fry. Nursing
bagda fry under the prevailing market conditions at this time simply wasn’t viable.
iii
Rearing of freshwater prawn fry was more successful and can take place from June through to
October during the main monsoon season (whereas Bagda fry would be reared from February to
May). Production increased over the three years of trials and was most successful for wild fry
(80% survival) although stocking hatchery fry was shown to extend the season by three months as
hatchery fry were available from early May and June. However, survival of hatchery fry was quite
low (54%) due to overstocking and inadequate sorting and also probably because the hatchery fry
were stocked at an earlier stage in the life cycle compared to the wild fry BOBP.
The results from the BOBP trials indicate that the potential is greatest for Golda nurseries. Golda
currently fetches a higher price and can be carried out in sheltered freshwater areas (and hence
cages will not be subjected to erosion). A key requirement is for strong organisational support
from a competent NGO and one that can successfully chart the route away from fry collectors’
dependence on the dadonars. The most successful form of support would assume a holistic
approach encompassing all the basic needs of the community: basic sanitation, shelter, education
and access to clean drinking water, in conjunction with support for alternative income generating
activities. The holistic approach adopted by Caritas in Satkhira under the SEMP project is a
potential entry point for any future trials with fry collectors and nursery operations.
According to the BOBP report, one of the success factors was the investment of time in group
formation and strengthening and soliciting support from the local elites. The optimum marketing
lot was 50,000 PL regarded as a sufficient amount to allow bargaining for a fair price. Group
selling and access to buying agents are therefore necessary and linked to the need for strong
cohesiveness within groups.
iv
1. Introduction
In Bangladesh, post larvae (PL) are derived from either hatchery or from wild sources. In the case
of bagda, 50% is derived from fry collectors and 50% from hatcheries. In respect to golda, 90% of
the PL is derived from wild sources and 10% from hatcheries. Wild sources are still preferred by
farmers as many believe that wild PL have a higher survival rate.
Commercial shrimp hatchery operations are a recent development in fresh water and brackish water
aquaculture in Bangladesh. There are currently around 45 Bagda shrimp hatcheries, 39 of them
along the Cox’s Bazar beach, the remainder inland. A number of small scale Bagda hatcheries are
located around the country adjacent to river banks. There are also 34 fresh water prawn (Golda)
hatcheries scattered across the country. The Golda hatcheries do not require such proximity to the
sea because seawater can be transported to the hatchery and recycled over 3 to 4 cycles of
operation.
2. Objectives of the study
The main objectives of this study were to:
 assess the factors impacting on the growth and distribution of hatcheries including brood stock
strategies, transportation of PL, and pre-grow-out management policies, and
 review opportunities to involve poor people in hatchery operations, specifically in nursing and
grow-out of PLs.
This review forms part of the Shrimp Action Plan developed jointly by DFID and representatives of
Fourth Fisheries Project, Department of Fisheries in February 2002. The report describes the
measures needed to improve farming and hatchery management practices to ensure a more
sustainable and equitable shrimp aquaculture in Bangladesh.
3. Background to shrimp hatchery development in Bangladesh
3.1 The growth in demand for post larvae
With the rapid growth of shrimp farming during the 1980s, farmers started selective stocking of
wild PL in their farms. Prior to this, farmers practised traditional methods of trapping PL and fish
seeds flowing in naturally to their farms with the tide. Following the switch to selective stocking,
shrimp farming became more profitable and there was rapid growth accompanied by a sharp
increase in the demand for wild PL. This led to the emergence of a large wild PL fishing industry in
the coastal zone. However, temporal and spatial fluctuations in abundance and distribution of wild
PL meant that as the industry grew, the supply of PL remained uncertain from year to year. During
the late 80s there was a severe shortage of PL in the Khulna-Satkhira region prompting expansion
of the wild fry collecting areas eastwards to Coxes Bazar. This resulted in PL being transported
long distances from Cox’s Bazar to the main shrimp producing areas in Khulna in south west
Bangladesh.
3.2 Selection of initial sites for hatcheries in Bangladesh
The development and location of the hatcheries was largely guided by an MOFL report on site
selection in August 19942. The Ministry formed a site selection committee to identify suitable sites
2
MOFL Report on the site selection of Bagda shrimp Hatchery zones and Semi intensive shrimp farming areas, 1994
1
for Bagda hatcheries and semi-intensive Bagda shrimp farms. The committee identified 9km of sea
frontage at five locations along the beach of Teknaf and Ukhia (Cox’s Bazar district). These
locations were in addition to the Kolatoli beach where two km of sea front area had earlier been
identified as suitable for hatchery development. The IDA, Pioneer, Niribili and Modern hatcheries
had already been built there before the release of the MOFL report.
The site selection committee used the following criteria to identify appropriate sites:
a. Supply of pollution free saline water (28 to 32 ppt salinity from Nov to May),
b. Existence of a stable narrow beach for easy intake of water into the hatchery (within 200 m),
c. The beach should be partly strewn with pebbles and boulders and covered with relatively course
sands and the water should not be silty,
d. Situated close to Bagda shrimp breeding grounds to minimise the transport time of broodstock
to hatcheries,
e. Have a good elevation to ensure the sites are above the highest high tide zone,
f. Good road access,
g. Electricity supply,
h. Supply of fresh ground water.
This resulted in most of the Bagda hatcheries being located in the south eastern part of Bangladesh,
some 700 km away from the main shrimp farming areas in the south west.
3.3 The emergence of the private sector
For the last two decades, the Department of Fisheries has been trying to support the shrimp sector.
In 1988, it’s IDA funded project successfully demonstrated spawning and larval rearing of P.
monodon using a makeshift hatchery arrangement in Kolatoli, Cox’s Bazar. In 1992, the first
private hatchery, Pioneer Hatchery, began producing Bagda PL commercially. Up until 1996, there
was a gradual increase in the number of private Bagda hatcheries followed by rapid expansion
between 1997 and 2000 fuelled by a number of financial incentives provided by the Government.
4. Number of hatcheries and production capacity
4.1 Number of hatcheries
Presently there are 45 hatcheries producing exclusively bagda PL, 39 in Cox’s Bazar, four in
Khulna, one in Satkhira, and one in Chittagong (See Table 1 and Figure 1). Two more hatcheries
are under construction in Ukhia, Cox’s Bazar and likely to begin production at the beginning of
2003. There are a further 15 hatcheries producing golda. Golda hatchery production is well below
capacity.
4.2 Production capacity
Based on the larval rearing tank (LRT) capacity for 39 hatcheries, the total PL production capacity
for Bagda is estimated to be around 6000 million per year. Each plant produces around 28M PL per
cycle. One tank holds 30,000 PL, each tank holds 30 t of water. One mother produces 7-8,000.
SHAB and Department of Fisheries reported production rates of 3027 million and 3460 million in
2000 and 2001 respectively. It is believed that this figure is higher due to some unreported PL
production. It is likely that, with present the SHAB quota system, people hide production
information. The market demand, at current utilisation rates, is equivalent to 3,000M PL and 500M
PL respectively (Banks 2002). Prior to 2002, the markets were flooded with hatchery PL due to the
2
number established
increase in the number of hatcheries
producing fry. There was no tracking of
market demand and a huge quantities of
PL were dumped on the markets in Khulna
and Satkhira during March and April
pushing the PL price down below the
production cost.
cumulative numbers
Number of hatcheries
50
40
30
20
10
0
Up to 1997
1998
1999
2000
F
ig 1: Number of Bagda hatcheries
Shrimp PL production (in billion)
4
3
2
1
0
Up to 1997
1998
1999
2000
2001
SHAB responded to the resulting price falls by
introducing a quota system to reduce the supply.
The quota system broke down this year as SHAB
failed to mediate a quota distribution that was
acceptable to all the hatchery owners. There was no
production information available from SHAB this
year. Department of Fisheries, however, report that
this year PL production was between 2500 and
2750 million.
Fig 2: Production of Shrimp PL from Hatcheries
This year many hatcheries have upgraded their capacity and 4-5 new hatcheries were established
(Banks 2002). However, a number of hatcheries suspended production this year due to the drastic
fall in market price. The annual demand for the whole shrimp industry3 could actually be produced
by five to six of the large hatcheries (e.g. Beach Hatchery, Sea King, Modern, Sonar Gaon) which
produce a combined total of around 3000 million PL annually. The average prices (2001) for bagda
and golda PL were Tk740/1,000 and Tk2,200/1,000 respectively.
4.3 Growth of small hatcheries in the Khulna region
There are already 5 small hatcheries (3 in Khulna district, 1 each in Satkhira and Bagerhat districts)
with production capacities ranging from 2 to 5 million PL per year. The investment costs associated
with these hatcheries were much lower (Tk5-10 million) compared to the average investment cost
in Cox’s Bazar (Tk.22 million).
Hatcheries located close to the farming areas benefit from direct links to farmers but they have to
bring brood shrimps by Sea Plane and saline water from deep sea by barge. Farmers buying locally
produced PL report higher survival rates compared to PL brought in from Coxes Bazar because the
PL have been produced and acclimatised locally and are not exposed to long transport times. By
locating their hatcheries in the shrimp producing areas the owners can avoid selling PL through
Satkhira based traders (aratders).
4.4 Competition from wild supply of post larvae
Around 1,500-2,000M PL are collected annually from the wild by an estimated 440,000 wild PL
collectors (in 2001). By 2001, PL production from hatcheries had already surpassed the existing
demand in the market and wild collection has reportedly fallen drastically this year. Presently, more
than 50% farmers stock hatchery PL while stocking of wild PL is on the decline. The total sales
3
Department of Fisheries prepared TAPP for FAO on April 2002: Developing National Seed Certification System.
3
value of hatchery and wild caught PL is estimated to be equivalent to Tk1,006M and 1,742M
respectively (Banks 2002).
Despite the continuing trend towards hatchery PL, wild PL still commands a higher price because
farmers believe wild PL have higher survival and growth rates compared to hatchery produced PL.
In the case of bagda, the price is 12% above that of hatchery produced PL, whereas with golda the
price differential is 7% above the hatchery price. The wild caught PL usually has a higher average
age (15-25 days) than the hatchery-produced product. Price differences have been created for three
reasons:
1. Wild caught PL is considered more robust and has a lower mortality rate (40% as compared
with 60-80% for hatchery produced PL) and can command a higher premium.
2. Hatchery produced PL is associated with the perception of a higher likelihood of contracting
white spot virus (WSV). This is largely because the outbreak of the WSV was associated with
(imported) hatchery produced PL.
3. Hatcheries and wholesalers deliberately reducing the supply of hatchery produced PL against
the background of a shortage in supply so as to force an upward shift in the market.
Most PL collectors sell to farias, who subsequently transport wild PL to the arats (wholesale
depots). These arats are usually the same intermediary depots, which handle hatchery produced PL.
The aratdars may sell directly to farmers or through a network of additional farias. More
information on fry collectors can be found in Frankenberger (2002). Usually wild caught PL is
stocked by farmers in remote areas while hatchery produced PL is increasingly popular in the farms
close to better a transportation network. Wild PL is largely available throughout the year, whereas
hatchery PL is available only during late February to June. Those who stock early, depend on wild
PL. Farmers are still unaware of the problems of early stocking, particularly during November to
mid February because of cold weather.
Scientifically, there should be no difference between hatchery produced and wild-caught PL. A
CARE study in September 1999 has reported good survival of hatchery PL of golda. If proper care
is taken (acclimation, nursing and optimum handling during transport and storage) hatchery
produced PL should give good results because of the homogenous age group. In wild caught PL,
heterogenous age groups of PL prevails and this encourages cannibalism, the larger animals take
advantage of the smaller ones during moulting.
4.5 Golda production
The last 10 years have seen a rapid growth in Golda production but hatchery development has
lagged behind Bagda although production capacity for Golda is increasing. More than 90% of
golda PL is derived from wild sources: 60% from Khulna; 35% from Comilla and Noakhali; and
5% from Cox’s Bazar. As a result of expanded culture initiatives, there appears to be an acute crisis
in the availability of golda PL. There are 34 golda hatcheries spread throughout the country, of
which 15 are in the Khulna district and a further 9 in Chittagong district. There are 15 hatcheries
reported to be in production4, producing an average 2.7 M PL. Each factory produces an average
13% of its total production capacity (Banks, 2002).
The Department of Fisheries operates three Golda hatcheries. Two of these, the DOF Golda Project
hatchery and the Kaligonj Hatchery in Satkhira district produced 3.5 lack PL and 5.5 lack PL
respectively this year. The ADB hatchery has produced both Bagda and Golda since 2001. Niribili
hatchery, Borac hatchery and a small number of other hatcheries in Cox’s Bazar have also started to
produce Golda PL over the last two years. Moreover, a total of eight Golda hatcheries under BRAC
4
Abedin, op cit
4
have produced and distributed Golda PL at the field level for the last couple of years. As of August
2002, around 7.5 million Golda PL were produced against a target of 10 million for the current
production season5. Other Bagda hatcheries could easily be converted to Golda hatcheries or
utilized for Golda PL production during the slack season for Bagda production (Banks, 2002).
In 2001, the cost of golda PL was about 3 times that of the previous year, and 3 times that of
bagda6. The current price (April 2002) of wild PL is Tk3,000/1000 PL, which is nearly 40% higher
than the 2001 price (Tk1500-1600 per 1000 PL). Hatchery PL are only marginally cheaper
currently selling for Tk100-200 less per 1000 PL (CARE, 2001).
5. Investment status
The growth of the hatchery industry has benefited from numerous government incentives (lower
import duty for feed, chemicals and equipment and machinery for projects listed under the Board of
Investment, loans7, tax free earnings, Advance Income Tax is collected on exports at a rate of
0.25% instead of the normal rate of 3%). For shrimp hatcheries and processing plants, there is a
complete exemption from advanced income tax. Many of the hatcheries are over capitalized in
terms of optimum investment needs. The average cost of establishing nine hatcheries in Cox’s
Bazar was Tk.22 million (US$0.38 million). Around 22% of hatchery owners took credit from
banks. One of the larger hatcheries (Beach Hatchery Ltd.) had invested Tk.200 million (US$3.44
million) to create an annual production capacity of 500 million PL. It was observed that the
luxurious infrastructure along with expensive residential facilities in many hatcheries located on
remote beaches could easily be avoided. One reason for this high investment may be the high
degree of profitability in the hatchery business. Most of the investors in the Coxes Bazar areas are
wealthy businessmen with no technical background. In the Khulna region, however, hatcheries
were established at comparatively lower cost8. This low investment may be due to the inherent
uncertainty about operational success in this area.
6. Hatchery processes and technical know-how
6.1 Processes
6.1.1 Bagda
Most hatcheries use flow-through systems. Brood shrimps are collected from the commercial
offshore fishery (Tk1,500/mother). Eye stock ablation is rarely used to induce the shrimp to spawn
due to high mortalities. The eggs generate within 1 week. The full cycle for the production of PL
takes 1 month. To get to post larvae stage takes 5 days. PL is then sold between 12 and 18 days
after reaching the PL stage. The hatchery period takes place from January to April. It is believed
that the current method of collection causes high stress. High mortality and premature abortion are
reported in many hatcheries (Banks 2002). There are also complaints this year that importers have
difficulties in clearing imported goods from customs warehouses. Sometimes it takes the whole
production season to clear imported items even when they arrive well ahead of time.
Some hatcheries reported that the two key constraints were salinity, the ideal production period
being between the months of November to April; and temperature, November to January was
5
Shah Ahmed Masud, Prawn Hatchery in Charge, BRAC, Barisal
6
CARE: Costs and benefits of Golda production, 2000
7
The interest rate is 7% for export oriented industries while it 10% for non-export types of industries.
8
Investment cost of Khulna region shrimp hatcheries were reported about Tk5 million to Tk10 million
5
considered to be too cold for production, albeit that technicians can and do add heaters. The ideal
hatchery conditions are from February to April.
Seven hatcheries at Teknaf and 15 hatcheries at Ukhia are located more or less in a single line
along the beach of Cox’s Bazar. In Kolatoli, 16 private hatcheries and one government hatchery are
located very close together resulting in water intake points of one hatchery being set adjacent to the
effluent outflow points of another hatchery. Hatcheries in Kolatoli are very susceptible to the
spread of disease.
6.1.2 Golda
There has been huge growth in demand for Golda PL in Khulna, Satkhira and Bagerhat districts
over the last five years. Golda PL production from hatcheries continues from March to July.
Compared to Bagda, Golda PL production is more difficult due to: a lower fecundity9, a longer
rearing cycle10, and a smaller marketing lot11. However, Golda broods are easily available at a
comparatively cheaper price and handling the brood shrimp is easier than with Bagda. The
technology is not widely available in Bangladesh but a number of hatcheries are successfully
producing Golda PL and given the higher price of Golda PL and higher market demand the
prospects are good for existing hatchery operators. A number of Department of
Fisheries/BRAC/DANIDA12 workers are experienced in Golda breeding and could be utilized to
train private hatchery operators (Banks 2002). All the hatcheries use closed systems. The lack of
growth in production of hatchery PL is constrained by:




The lack of technology,
Availability of brackish water in close proximity to the plants (required to be 10-12 ppt)
The perception that wild caught PL is more robust.
The perception is that hatchery produced PL has a slower growth rate
Golda hatchery produced PL has a higher price because it is required to be older, more than 35
days. Therefore, most of the available PL (presently perceived to be around 90%) is caught wild in
estuarine river systems. Generally, a similar collection process is used as with bagda PL but
discarding is much reduced. The distinction is that in this industry wild caught PL tends to be
beyond the post-larval stage (4-7 cm). Major problems occur in the transportation of golda PL from
the river systems13.
6.2 Production costs
The cost of production ranges from Tk100 to Tk270/1000. High production costs are due to the use
of foreign technicians, high price of feed (brine shrimp cysts) and the use of antibiotics. Most of the
hatchery owners use foreign technicians from Taiwan, Philippines, Thailand, China and India.
Some commentators in the industry complain that since salaries are linked to production targets,
many of the foreign technicians use expensive inputs (feed, chemicals and brood shrimp) to
maximise production resulting in higher production costs per PL.
9
Fecundity is the number of eggss produced per brood fish/shrimp
Golda PL require about 38 to 45 days to become marketable size
11
Golda PL is sold in smaller quantities as the farm size is smaller
12
There are 4/5 Department of Fisheries workers, 2/3 BRAC and DANIDA workers with proven experience in Golda
hatchery
10
13
Transported by boat, rickshaw, van, bus, tempos and bicycles. Metallic containers e.g. aluminium handles (aluminium container
with rope handle), galvanised iron drums, are used for transportation by road. Boats are used for long distances. Containers are
placed on open deck of the transport and exposed to heat thus creating large-scale stress on the animals. The holding water is often
changed with canal / pond water without any consideration to shrimps physio-chemical requirements. Large-scale mortalities result.
Use of oxygen during transport is uncommon. (95 % transported without artificial quantum) (Karim, 1999). Only hatchery produced
larvae are transported with oxygen
6
The cost of inputs is known to have increased following the large-scale replacement of Taiwanese
technicians for Indian specialists. The Taiwanese are said to have used less input and achieved
significantly greater yields. Hatchery owners switched to hiring Indian technicians largely because
the method of payment to the Taiwanese (by Commission) proved to be unpopular. Transport costs
are also high (Tk54/1000). Air freight is used for hatchery produced PL as it reduces mortality
significantly (Banks 2002).
6.3 Technical know-how
A major constraint on hatchery production is technical know how. There was no clear
understanding of technical issues among the investors or Department of Fisheries officials and there
has been little exchange of ideas and problem solving among different hatcheries. There is a lack of
local technical know how among local workers and a heavy reliance on foreign technicians (Indian,
Thai and Taiwanese). The lack of expertise manifests itself in several areas: care of brood mothers,
use of chemicals, and relative costs of technical labour (higher for imported technicians as opposed
to Bangladeshi workers).
Training of local technicians is a pre requisite to better hatchery care. However, there is presently
no training of technicians within Bangladesh and foreign technicians are reported to be reluctant to
share their experiences with their co-workers. Training facilities similar to those in the Philippines
and Thailand are needed. The Department of Fisheries has planned to train 250 hatchery and
nursery operators under its Bagda Project using the ADB Hatchery facility in Coxes Bazar.
However, this has been no progress to date due to budgetary constraints and a lack of capacity to
deliver this type of training.
7. Quality control
7.1 The need for certification
Farmers complain that hatchery PL are more susceptible to disease compared to wild PL. They
argue that spoon fed animals reared under artificial conditions where several types of chemicals are
used suffer high mortality rates when released in the grow-out ponds. Early sale of underage PL
(PL12 - PL14 instead PL18 –PL22) also enhances the mortality rate. Inadequate salinity
acclimatisation during packing in the hatchery may also cause mortality. The absence of any
labelling on the PL packs leaves farmers ignorant of age, ambient salinity, packing time, number of
PL in pack and handling instructions for stocking the PL.
The scope for certifying the processes used in hatcheries and the quality of PL was assessed as part
of the Shrimp Action Plan. The approximate costs for establishing a hatchery certification scheme
were estimated to be around US$500,000 per annum, excluding the costs for setting up laboratories
(US$265,000). Given that the shrimp sector is highly profitable, there should be sufficient liquidity
within the sector to finance certification with monies raised through a standing charge
(administered by SHAB) on use (Huntington, 2002).
7.2 Current measures being taken to improve PL quality
Until now there has been no quality assurance system for shrimp PL produced under hatchery
conditions. Awareness of the need for improved quality control is increasing but there are still no
PL quality control laboratories in Bangladesh. The Department of Fisheries Bagda Culture Project
has been trying to establish a quality control laboratory but the project suffers from a lack of
7
technical support. There is still no Polymerase Chain Reaction (PCR) facility widely available in
Bangladesh for viral detection and screening of diseased brood shrimp and shrimp PL although it
was learnt that one private hatchery named Unique Bengal Hatchery has recently installed a PCR
device14. Department of Fisheries has prepared a TAPP to provide PCR based shrimp seed
certification system and submitted recently to the FAO for financial support (more information can
be obtained in the Certification Report, Huntington 2002).
8. Brood Shrimp Collection
8.1 Existing practices
Currently, all hatcheries in Bangladesh rely on the collection of broodstock from the wild. There
are three fisheries targeting wild stocks of shrimp: fry collection, fishing for juveniles by a large
artisanal fleet and shrimp trawling. Marine shrimp trawling is thought to be very destructive for the
brood stock in the wild. There are about fifty shrimp trawlers engaged for exclusively harvesting
shrimp. The total annual harvest from the Bay of Bengal is dwindling rapidly (Fig 4). It is learnt
that the seasonal ban15 has not been enforced. A Department of Fisheries source informed that the
number of marine trawlers is also likely to increase shortly under pressure from Marine Fisheries
Association (BMFA).
In Bangladesh, brood shrimps are collected by using trawl nets rather than trammel netting. During
trawl netting for shrimp, many other fish are caught along with mud and sediments. The pregnant
brood shrimp become are exposed to high levels of stress from compression and abrasions inside
the net. When brought to hatcheries most of them die or have premature abortions providing only a
small quantity of poor quality eggs.
Bagda shrimp breed almost round the year, but mid-February to mid-March is thought to be the
peak period. Considering the fact government banned shrimp trawling from 15th January to 15th
February in 1994 but could not enforce at all due to the injunction coming from the High Court in
1995 after the writ petition filed by the BMFA. Similarly, the use of set bag nets with less than 45
mm mesh size at the cod end is also prohibited under Fish Act but this law is not enforced due to a
lack of alternative livelihood opportunities for poor fishers.
There are rarely any attempts to keep brood shrimp in quarantine to reduce the chance of disease
contamination from brood to offspring. If using the mothers from the trawl fishery, the mother
should be quarantined. The operation is simple and short-lived and reduces the stress levels in the
mother. The perception is that the brood stock may be gravid and as such hatchery technicians are
reluctant to undertake any quarantining. This process is standard in most practising countries.
8.2 Emergence of specialised broodstock supply service
This year there was a shortage of brood shrimp. This year five to six trawlers were engaged under
three private companies in collecting brood shrimp from the Bay of Bengal. These trawls are of
shorter duration (usually for about an hour) than normal trawls and the harvested broods are stored
in aerated containers on board. Hatchery operators collect the brood shrimp by speed boat to
transport them to the hatcheries. The supply of brood shrimp was sufficient up to April, but after
the last week of April there was a severe shortage of brood shrimp and of those caught, most
14
The estimated costs for a PCR lab would be in the region of. Tk1 M, together with 3 M 14 for the equipment
(autoclaves, refrigeration) (Banks 2002).
15
There is official rule not to harvest shrimp during mid January to mid February by shrimp trawlers but the BMFA has
lodged court case against the rule.
8
suffered high mortality immediately after collection. The causes of the fluctuation in brood shrimp
abundance are not well understood. The scope for introducing a code of conduct for the collection
of broodstock has recently been assessed (more information can be obtained in the Certification
Report, Huntington 2002).
9. Distribution system
There is substantial waste in the seed collection and distribution system. High mortality occurs
from the time the PL is landed until it reaches the farmer. In addition there are mortalities due to
poor pond and water management practices by farmers. It is likely that mortality from landing to
harvest is up to 65%.
9.1 Supply chains
The features of PL markets are highly variable, sometimes they are fully controlled by hatchery
owners and sometimes they depend on local intermediaries in the Khulna-Satkhira areas. There are
local level agents in Khulna, Satkhira and Bagerhat districts who distribute PL transported by air to
vendors to sell in remote markets. Usually the hatchery owner sets the price of PL and receives
booking requests from the agents. As per the booking, the delivery of PL is made by air cargo to
Jessore and the agents arrange for collection and transport to the main markets. The shrimp PL is
distributed to the respective farmers depending on prior contracts made with vendors.
9.2 Credit and commission system
The hatcheries provide PL on credit to the agents who take a 10-15% commission to market their
PL. The agents sell to the vendors at a price fixed by the hatcheries. The vendors will usually add a
mark up of 20-30% to the price for farmers. Again the PL are sold on credit to the vendors who
then provide around 50% credit to farmers. The agents receive up to 50% of the full payment from
the vendor at the end of the day, the balance is paid at a later date depending on the solvency of the
respective traders largely determined by the market price.
The agents do not pay hatchery owners in advance, and try to sell on cash or on credit terms
according to the demand of the vendors. Later towards the end of PL business season, the agents
often find excuses for not paying the hatchery owners in full. The main excuse used is that they
have not recovered the credit from the chain of intermediary traders and ultimately from the shrimp
farmers. There have been no moves yet to distribute PL directly to the shrimp farmers from the
hatcheries. The intermediate PL agents are thus extracting huge amounts of money with little
investment and using it for money lending operations and other businesses.
9.3 Transport of PL
9.3.1 Air transport
Cargo air-planes are used to transport shrimp PL from Cox’s Bazar to Jessore airport. Small trucks
(3 tons) carry the PL packed in styrofoam boxes to Khulna, Satkhira and Bagerhat from the Jessore
airport. It requires 4 to 5 hours to reach these district level markets and an additional 2 to 4 hours to
reach the grow out ponds depending on the distance, types of transport used and road condition.
From Cox’s Bazar Air Port, the cargo plane cannot fly until it is clear daylight, because, the air port
has no ground lighting system. If the planes could fly earlier in the morning, PL could be delivered
and released in the ponds around two hours earlier to reduce transport mortality.
9
9.3.2 Road transport
A significant number of Bagda hatchery PL are still carried by road from Cox’s Bazar to KhulnaSatkhira areas16. There are high mortality rates associated with road transportation of PL because it
takes 24-30 hours to reach the main PL markets in Khulna or Satkhira compared to 4 to 5 hours by
air. The PL mortality is between 20 to 30% for road transport compared to 5 to 10% for air
transport. The road transport cost is about Tk0.03 per PL against Tk0.05 for air transport. Traders
use land transport when air transport is not available. As the wild PL commands a higher price than
hatchery PL, it is thought some traders mix hatchery PL with wild PL and use road transport in blue
plastic barrels to fetch a higher price (packaging of hatchery fry is in distinctive polystyrene boxes).
The survival of shrimp PL during transportation is not measured and packages are not normally
labelled. Hence, farmers remain uninformed about the source and quality of fry arriving at their
pond sites.
10. Co-ordination of the hatchery sector
The private shrimp hatcheries have organised to form the Shrimp Hatchery Association of
Bangladesh (SHAB) to safeguard the interests of the shrimp hatcheries. SHAB was successful in
controlling PL production to reduce oversupply of the PL markets in Khulna and Satkhira through
quotas and benefited from associated price rises. The SHAB quota system operated during 2000
and 2001 but during 2002 the quota system broke down as certain hatcheries exceeded their quotas.
The Shrimp Fry Traders Association based in Satkhira was highly critical of the SHAB quota
system blaming hatchery operators for creating an artificial PL shortage. The fry traders benefit
more when there is no quota system in place. The Department of Fisheries have no control over
hatchery production and PL marketing, although the MOFL tried to negotiate between SHAB and
Shrimp Fry Traders Association on a number of occasions to break the deadlock that arose when
the Shrimp Fry Traders Association refused to trade hatchery PL last year. However, the MOFL
and Department of Fisheries are now actively considering introducing a hatchery licensing system
to provide institutional support to the newly developed sub-sector of the industry17.
11. Role of research organisations
The Fisheries Research Institute plays no role in the shrimp hatchery business. There are numerous
problems associated with poor handling of brood shrimps, rearing of PL, stress and shock to PL
during transport that could be address through applied research but FRI has been slow to respond.
This is despite evidence that scientists around the world have been successful in inducing spawning
of freshly captured wild ovigerous female, induced maturation in marine or high saline ponds of
reared adults and wild non-ovigerous females and rematuration and conditioning of previously
spawn wild adults of penaeid shrimp.
12. Farming practices
12.1 Bagda
The most important costs for farmers are fry, costing just under Tk.15,000/ha, or approximately
Tk1000/1,000. The average stocking rate is 1.6 PL/m2 (15,808 PL/ha – around 15,000 PL/ha) while
many farmers stock around 3 PL per square meter (29,640 PL/ha – around 30,000 PL/ha). During
Department of Fisheries Cox’s Bazar source informed that 1710 million and 400 million PL had been transported in
2002 by air and by road respectively.
17
The DG, Department of Fisheries has placed a set of recommendations including hatchery registration and licensing
system to the MOFL on August 02.
16
10
2000, farmers stocked both wild and hatchery PL almost in equal proportion. However, the
dependency on wild caught PL increased in 2001 as a result of deliberate attempts by the hatchery
owners to keep down production in order to increase the price of their product. The average PL
price from wild source was Tk0.86/PL (Tk860/1000PL) while for hatchery source it was Tk0.74/PL
(Tk740/1000PL). Wild PL is sold at 12% above the price of hatchery produced PL. The major
stocking in Bagerhat and Satkhira takes place in February, whilst in Cox’s Bazar, stocking may
take place (in the farm side canals) as early as November.
Many farmers start stocking during the winter months from November through to February,
stocking PL continuously depending on the availability of PL. Farmers initiate stocking gradually
using PL from wild source. After mid February, when the weather becomes warmer, farmers start
stocking hatchery PL. These practices are probably resulting in high losses and unnecessary costs
due to low survival rates of PL during the cold winter months and stocking of different sized PL
throughout the season (from cannibalism). Experience shows that lower stocking results in larger
sizes of shrimp18
12.2 Golda
Most of farmers stock post larvae in their gher directly at a density of 40 PL/decimal to 120
PL/decimal (10,000 - 30,000 PL/ha) and 8,000 - 20,000 juveniles/ha without rearing them in a
nursery system. Again, the cost of PL is high relative to other costs averaging Tk2,200/1,000. Some
of the nursed PL are stocked in the trench of the gher or small ditches at densities of 2000-3000
PL/decimal. The farmers also cultivate silver carp, rohu, catla and silver barb with prawn for
additional income and their own consumption.
Almost all the farmers stock wild post larvae (PL) of freshwater prawn in their ghers rather than
hatchery PL due to an incidence of high mortality of hatchery PL in 1995 associated with imports
from Thailand19. Because golda PL is often mixed with other wild caught (marine) PL, farmers
may attempt to discard the latter. There are however examples of increasing incidences where
farmers regard bagda as a useful alternative crop to golda since it allows for early stocking
(March/April). Production cycles are quicker (2.5 to 3 months as compared to 7 months for golda)
and sales prices are higher, PL costs around one-third the price of golda. There is nevertheless a
perception of high risk associated with white spot disease in bagda20 (Banks 2002).
13. Nursery operations
13.1 Current status
Most of the hatcheries are in Coxes Bazar whilst the majority of the production comes from the
south-west. In these farming areas (Khulna, Satkhira and Bagerhat districts), farmers stock PL
directly into their ghers resulting in high mortality rates due to poor acclimatisation and predation.
Hatchery PL are sold much earlier than wild caught PL so when farmers switch to hatchery PL
losses due to predation etc. become more prevalent. Nursing of PL is known to increase survival
rates yet there are very few PL nurseries and secondary hatcheries in the shrimp producing areas.
Some fry traders are diversifying into nursery production though in reality these centres are really
18
FFP, 1998
The type of disease was fairly isolated. Specific diseases applicable to golda include: spongy body, black gill disease,
antenna rot, tail rot, de-shaped rostrum, brown spot and de-shape of carapace. Most diseases are curable by increased
nutrition, the application of antibiotics and liming. However some can only be eradicated by cleaning the ponds entirely
(antenna rot, tail rot, de-shape of carapace)
20
Test results show that the mean weight of bagda was 27.9g ranging 47.3g to 17.8g The mean production was 112.2 kg / ha
19
11
fry buying stations since they only store the fry for 3-4 days before selling on. Extending the
nursing time would increase survival further.
In Satkhira, most of the “nurseries” are situated along the Kaliganj highway and buy their PL from
Coxes Bazar. The “nurseries21” vary in structure from concrete tanks to earthen ponds22. Some
hatchery owners are also starting to diversify their operations and develop nurseries. This operation
could also be an alternative livelihood for fry catchers if land, credit and training could be made
available to them (see section 14.3). Larger sized PL obtained from this type of nurseries stocked
into ghers are likely to achieve 80 – 90% survival during grow out. In addition farmers need to be
encouraged to develop their own nursery areas within their ghers to reduce losses from predation.
13.2 Economics of nurseries
The nurseries in Satkhira are very profitable. One operator was buying 16-17day PL at Tk0.2 per
PL direct from the hatcheries and sell 20-22 day PL at Tk0.875 per PL. Mortality rates are around
30%. Hence per batch of 10,000PL he made a profit of Tk4125 (less labour, input23 and lease costs)
in 4 days. This nursery operator had 15 tanks24 from which he produced 1.5 crore PL over 3 months
generating profits25 of more than Tk600,000 (£8600). Another operator in Shamnagor bought at
Tk0.8/PL and sold at Tk1.3/PL producing 30,000 PL (3 lack) for every 4 day cycle. Assuming 5
months production per year, 30% mortality rate and subtracting the leasing costs 26 this would have
generated profits of Tk375,750 (£5200).
13.3 Scope to engage fry catchers in nursery operations
13.3.1 Opportunities for establishing small scale nurseries
Nursing enterprises should be an attractive occupation on account of its quick returns. The small
number of existing nursery operations suggest substantial potential for growth. The question is
whether it is feasible for the extreme poor involved in fry catching. The key requirements are
access to land/water, expertise (technical, marketing and enterprise management), and capital. None
of these are presently within reach of most fry catchers and the support of a strong NGO and other
key local structures (Union Parisad, trade and market associations) would be vital. The potential for
engaging fry collectors in developing an extensive network of small-scale nursery operations
diminishes as the sector enlarges. Once others have moved in and become established in nursery
operations it will be difficult for fry catchers to compete. An early intervention is required to enable
the operators to establish links with farmers and traders.
The main shrimp producing areas are in the south west and this would be the most appropriate
place to establish a network of nurseries with fry catchers particularly considering Department of
Fisheries and MOFL are considering introducing a complete ban on fry catching in the Sunderbahn
area. The NGO network in south west Bangladesh is extensive and easily capable of working at the
grass roots level with fry catchers. A history of confrontations with the authorities over water
management (in water logged areas) and rights abuses within the polders has resulted in the
emergence of a strong civil rights movement, athough not co-ordinated to any great extent. A
21
These are really buying stations rather than nurseries.
One nursery had 14 earthen ponds (15 by 12 ft) employing 6 skilled staff and spending Tk1.5 lack in daily labour (at
Tk60 per day). Now that the nursery is fully constructed these daily labour costs will reduce by 75% next year. Another
6 pond nursery, started in 1999, was operated by its two owners and 3 hired labourers. This nusrey supplied 192
farmers in the surrounding area in Shamnagor and Kaliganj areas.
23
Operators do not apply fertiliser or feed.
24
Some at 8 by 12ft and 6ft deep and some at 10 by 15ft and 6ft deep.
25
Less labour (this nursery employed 12 people) and lease costs.
26
In Shymnagor this nursery had leased land at Tk3000 per bigha paying Tk18,000 annually for their 6 bigha nursery.
22
12
number of NGOs are well equipped to negotiate resource rights on behalf of fry catchers to ensure
they get access to areas for nursery development. They would however, require some capacity
building (in adaptive technology and financial management) to enable them to facilitate low risk
strategies with fry catchers on nursing and marketing fry to farmers.
13.3.2 Past experience
A number of cage nursery culture trials with both tiger shrimp (Bagda) and giant freshwater prawn
(Golda) were carried out with fry catchers in Bangladesh by the Bay of Bengal Programme in 1994.
The aim was for fry catchers to increase their earnings through sales of nursed post larvae and
juveniles and to increase the survival of PL in the distribution system. The report concluded that it
was unlikely that tiger shrimp fry nursing could be made profitable under the prevailing market
conditions at the time although a mix of wild caught and hatchery reared Golda would be
profitable.
The work took place in Chokoria and was supported by an NGO (UBINIG) which implemented the
technical trials and organised the participating groups over three years. The cage nurseries were set
in the Matamuhari River adjacent to the fry collector’s village. Initially, the trials suffered from a
lack of expertise in cage culture. The community was engaged from the very beginning in the trials,
this had the advantage that it engendered community ownership but it also exposed the
beneficiaries to considerable risks associated with the undeveloped technology. The technology
gradually improved over the three years but the trials illustrated the vulnerability of carrying out
aquatic based small enterprises in the coastal zone to, natural calamities (a severe cyclone destroyed
the cages in one year), and fluctuations in market conditions (price varies according to wild supply
from year to year). The internal rate of return was shown to be highly sensitive to variations in
selling price and mortality BOBP (1994).
There could be a number of reasons why the Bagda trials were unsuccessful and why trials
undertaken today could be more successful. Firstly, the cage technology was undeveloped at that
time, cage culture technology has considerably improved since the trials in 1994. CAGES project
successfully developed and introduced improved technology with landless groups throughout
Bangladesh from 1996-2001. The second issue is one of site selection, the trial took place in a river
and cages were exposed to strong currents, experience from CAGES project indicates the
technology is more successful in sheltered water bodies such as canals and beels. Thirdly, the
supply of hatchery fry was limited at this time implying a reliance on wild fry. Finally, the apparent
failure of the Bagda trials was due to the low price for nursed fry, Tk27-50 per 100 fry. Nursing
bagda fry under the prevailing market conditions at this time simply wasn’t viable BOBP (1994).
Rearing of freshwater prawn fry took place from June through to October during the main monsoon
season (whereas Bagda fry were reared from February to April). As the technology developed,
production increased over the three years from 3000 fry in 1990 to 16,500 fry in 1992 and was most
successful for wild fry (80% survival) although stocking hatchery fry extends the season by three
months as hatchery fry were available from early May and June. However, survival of hatchery fry
was quite low (54%) due to overstocking and inadequate sorting and also probably because the
hatchery fry were stocked at an earlier stage in the life cycle compared to the wild fry BOBP
(1994).
The marketing of fry was affected by the indebtedness of the participants to the dadonars. Fry
collectors were required to sell fry at sub market prices to their creditors. According to fry
collectors interviewed in 2002, dadon is still a major problem and is likely to remain a major
obstacle in enabling fry collectors to transition to nursing operations. Another observation was that
although women were involved in preparing feed and mending happas, they were not involved in
13
decision making and did not participate in the group meetings despite several attempts by UBINIG
to overcome these social pressures BOBP (1994).
The results from these trials indicate that the potential is greatest for Golda nurseries. Golda
currently fetches a higher price and can be carried out in sheltered freshwater areas (and hence
cages will not be subjected to erosion). A key requirement is for strong organisational support from
a competent NGO. Moreover, given the inherent poverty within fry collecting communities the
support should assume a holistic approach which encompasses all the basic needs of the
community. A good example of this approach is the ongoing Caritas project which targets small
scale shrimp producers under the Sustainable Environmental Management Programme (SEMP) in
Satkhira. This approach allows for issues such as the lack of basic sanitation, shelter, education and
access to clean drinking water to be addressed in conjunction with income generating activities.
This project could be a good entry point for any future trials with fry collectors and nursery
operations since it is based in the main shrimp producing area and the NGO Caritas (and other
NGOs in the area) has a high level of competence in aquaculture related activities. The CAGES
forum also has a presence in this area and could provide technical oversight of the activities.
Nursery rearing of tiger shrimp was also tried in India (West Bengal) in floating cages. The
technology was successful and profitable with the main determining factor for profit being price
margin between the selling and buying price for.fry. Maintaining survival rates of 80% was also
considered important. The profits were not sensitive to investment cost suggesting the technology
could be viable for small scale operators. The study concluded that future expansion of cage culture
should be directed to areas where salinity conditions offer the longest possible season. The study
also noted that the poorest fry collectors were the most persistent in continuing the culture.
According to the report, one of the success factors was the investment of time in group formation
and strengthening and soliciting support from the local elites. The optimum marketing lot was
50,000 PL regarded as a sufficient amount to allow bargaining for a fair price. Group selling is
therefore necessary and linked to the need for strong cohesiveness within groups. Proximity to a
buying agent of around 1-2 hours was considered adequate (BOBP 1993).
14. Conclusions and recommendations
1. The development of new Bagda hatcheries (45 hatcheries) and increasing production
capacities by existing hatcheries in the Cox’s Bazar region have caused the overall
production capacity for Bagda PL to exceed demand. The hatcheries responded to this
overcapacity by introducing quotas but a lack of unity within the industry led to the
breakdown of the quota system this year. The solution lies in rationalisation of the hatchery
sector and better co-ordination and dissemination of market information. Moreover, excess
capacity should be diverted into Golda production where possible using the existing
expertise within Department of Fisheries.
2. There is an acute shortage of Golda PL due expanding culture activities and more than
90% of the demand derives from wild sources. Out of 35 hatcheries producing Golda only
15 were operating and on average each hatchery was operating at only 13% of its capacity.
The cost of Golda PL this year was three times higher than for 2001 and three times higher
than Bagda PL. Hatchery PL is only marginally cheaper than wild PL.
3. The hatcheries compete with supplies of wild fry for a share of the market. The wild fry
market generates higher sales than the hatchery supply due to the higher unit price
resulting from the farmers’ continuing preference for wild fry. Between 1500-2000 million
14
PL valued at Tk1742 million are still collected from the wild. The sale value of hatchery PL
is estimated to be Tk1006 million.
4. A number of small hatcheries have been established within the shrimp producing areas
in Khulna, Satkhira and Bagerhat districts with production capacities of around 2-5 million
PL per year. Higher survival rates are associated with these PL which are reared under local
conditions and subject to reduced transport times. These hatcheries also benefit from direct
links to farmers although they have to bring brood shrimps by Sea Plane and saline water
from deep sea by barge.
5. The production costs for hatcheries are high ranging from Tk100-270 per 1000 PL due to
the use of foreign technicians, high feed costs and the use of antibiotics. Salaries for foreign
technicians are linked to production rather than profits which encourages the use of high
cost inputs to maximise production.
6. A lack of quality control and poor management practices constrains the sector. The
disease problems in the shrimp industry began with imported PL. Since then shrimp farmers
regard hatchery produced PL as the main source of disease infection in their farms. The
quality assurance of PL through a certification scheme is urgently needed.
7. Brood shrimp collected from the wild and the resulting PL produced from hatcheries
are not screened for disease. Procedures for ensuring the quarantine of brood shrimps and
screening for disease in PL and brood shrimp (using PCR techniques) are urgently needed.
Improved methods for harvesting brood shrimp from the sea using trammel net27 instead of
trawl nets are required to increase survival rates and reduce the impact of trawl nets on
breeding grounds. Existing methods of harvest should be phased out. Improved post harvest
handling and quarantine procedures are also required for brood shrimp used by the
hatcheries. Moreover, the wild brood shrimps should be checked for disease using PCR
facilities before using as brood.
8. Currently the only source of shrimp broodstock for hatcheries is from the wild.
Indiscriminate trawling for shrimp is likely to threaten stocks although a lack of survey data
precludes a more accurate stock assessment. Enforcement of the current ban on shrimp
trawling from 15th January to 15th February is considered to be important to conserve wild
stocks and ensure the supply of broodstock. The legislation is currently in abeyance
following an injunction from the High Court in 1995 after a writ petition was filed by the
BMFA. Wild stocks are also under pressure from the collection of wild fry and the use of
set bag nets (with mesh sizes smaller than 45 mm mesh size at the cod end prohibited under
Fish Act) in the juvenile fishery.
9. Hatchery fry is usually flown from Cox’s Bazar to Jessore and then transported by truck to
the main shrimp producing areas. The transport costs vary from Tk 30 per 1000 PL for
road transport to Tk 50 per 1000 PL for air freight. Higher mortalities occur during road
transport (20-30%) compared to air (5-10%) but some hatcheries send PL by road in mixed
batches with wild PL to secure higher prices.
10. There are too many intermediaries in the fry supply chain (agents receive 10-15%
commission and intermediary vendors mark up 20-30% before selling to farmers).
Intermediaries in the fry marketing chain extract considerable amounts of revenue from the
supply chain for money lending operations. A reduction in the number of intermediaries
27
Trammel nets when correctly operated have been shown to be less stressful for brood shrimp
15
would facilitate greater linkages and contact between hatcheries and farmers and ultimately
lower prices at the farm-gate. The smaller hatcheries, in Cox’s Bazar and Khulna and a few
of the larger hatcheries market fry directly to the farmers. The use of field agents in the
farming zones and the establishment of transit nurseries by hatcheries are positive
developments. These agents are able to determine the demand for PL from farmers well
ahead of time and adjust production to match demand.
11. There is weak governance within the hatchery sector. The absence of tractability in
particular encourages bad practices such as lack of disease prevention and control, poor care
of broodstock, sale of underage fry, poor acclimation and mixed packaging with wild fry.
Shrimp farmers lack the necessary information on the condition of PL at the point of sale
due to an absence of labelling. The PL bags should be labelled with the batch number,
number, age, time of packing, water salinity, pH, hardness etc. It should also contain clear
instructions about handling and acclimation procedures for the range of salinities and
temperatures found in farmers’ ponds throughout the producing zones in Bangladesh. The
expected survival rate under standard conditions should also be stated and hatcheries should
encourage buyers to provide feedback to the company about the survival of PL following
stocking.
12. Given the inherent potential of the shrimp industry in Bangladesh, very little research
work has so far been carried out. The hatchery sector needs applied research on
techniques for shrimp breeding and rearing of PL up to pre-grow out stage. The
development of farm raised brood and handling of wild brood shrimp is critical to the seed
supply system. The BFRI, research organisations and universities need to be more closely
involved in addressing the research needs of the industry.
13. Extension support for farmers remains weak due to the limited number of extension
workers in the field. Extension of Good Management Practices on selecting and testing for
good PL, PL acclimation, stocking density, post stocking monitoring of growth and survival
are required to increase shrimp production in extensive systems.
14. There is good potential to establish PL nurseries in the shrimp producing areas
especially Khulna, Satkhira and Bagerhat districts. PL reared in nurseries have higher
survival rates and increase production efficiencies for farmers. Nurseries can be operated
cheaply rearing PL under ambient water conditions with natural feed. Existing nurseries in
Satkhira are highly profitable, low risk ventures. The key requirements are access to
land/water and markets, expertise (technical, marketing and enterprise management), and
capital along with organisational support. High levels of competence from NGOs would be
required to successfully chart the route away from fry collectors’ dependence on the
dadonars and soliciting support from the local elites. In addition, farmers need to be
encouraged to develop their own nursery areas within their ghers to reduce losses from
predation.
15. The potential for engaging fry collectors in developing an extensive network of smallscale nursery operations diminishes as the sector enlarges. Once others have moved in and
become established in nursery operations it will be difficult for fry catchers to compete. An
early intervention is required to enable the operators to establish links with farmers and
traders.
16. The main shrimp producing areas are in the south west would be the most appropriate
location to begin establishing a network of nurseries with fry catchers particularly
16
considering Department of Fisheries and MOFL are considering introducing a complete ban
on fry catching in the Sunderbahn area.
17. Previous trials by the Bay of Bengal Programme illustrate the vulnerability of carrying
out aquatic based small enterprises in the coastal zone to, natural calamities and
fluctuations in market conditions. The internal rate of return was shown to be most sensitive
to variations in selling and buying price. Maintaining survival rates of 80% is also
considered important highlighting the need for robust technology. The profits were not
sensitive to investment cost suggesting the technology could be viable for small scale
operators.
18. The results from previous trials suggest that the potential is greatest for Golda nurseries.
Golda currently fetches a higher price and can be carried out in sheltered freshwater areas
(and hence cages will not be subjected to erosion). The most successful form of support
would assume a holistic approach that addressed all the basic needs of the community: basic
sanitation, shelter, education and access to clean drinking water, in conjunction with support
for alternative income generating activities. Optimum marketing lots will also need to be
determined to allow bargaining for a fair price. Group selling and access to buying agents
are therefore necessary and linked to the need for strong cohesiveness within groups.
15. References
Banks (2002). Brackish and marine water aquaculture. Report from the Fisheries Sector Review.
DFID.
BOBP (1994) Cage nursery rearing of shrimp and prawn fry in Bangladesh. BOBP/WP/92
BOBP (1993) Nursery rearing of tiger shrimp post larvae in West Bengal, India. BOBP/WP/92
Huntington (2002). Scoping study for the certification of shrimp aquaculture in Bangladesh. Report
from the Shrimp Action Plan. Department of Fisheries/DFID.
Frankenberger (2002). A livelihood analysis of shrimp fry collectors in Bangladesh: future
prospects in relation to wild fry collection. Report from the Shrimp Action Plan. Department of
Fisheries/DFID.
17
Table 1: Status of hatcheries producing Bagda PL in Bangladesh
Serial
Number
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
Name of Hatchery
BMC Hatchery Ltd.
Moon Star Hatchery Ltd.
Aquaventure Hatchery Ltd.
Sea King (Bashundhara) Hatchery
Beach Hatchery Ltd.
A & I Bagda Hatchery Ltd.
Al-Monsur Hatchery Ltd.
Sea King Hatchery Ltd.
Unique Bangal Hatchery Ltd.
Sea Gold Hatchery Ltd.
Diamond Hatchery Ltd.
Inter Export Hatchery Ltd.
Royal Hatchery Ltd.
Borac Hatchery Ltd.
Sorex Hatchery Ltd.
S Alam Hatchery Ltd.
Mostafa Hatchery Ltd.
Radient Hatchery Ltd.
White Gold Hatchery Ltd.
Bengal Bay Hatchery Ltd.
Marrygold Hatchery Ltd.
Sea Queen Hatchery Ltd.
Gold Coast Hatchery Ltd.
Unique Tiger Hatchery Ltd.
Satkhira Hatchery Ltd.
Silvia Hatchery Ltd.
Location
Teknaf
Teknaf
Teknaf
Teknaf
Teknaf
Teknaf
Teknaf
Ukhia
Ukhia
Ukhia
Ukhia
Ukhia
Ukhia
Ukhia
Ukhia
Ukhia
Ukhia
Ukhia
Ukhia
Ukhia
Ukhia
Ukhia
Sadar
Sadar
Sadar
Sadar
Estd.
1999
2000
1999
2000
1996
1998
2000
2000
2000
2000
2000
2000
1999
2000
2000
2000
2000
1996
1998
1998
1999
1996
1999
2000
1998
2000
PL
Producti
LRT
on
capacity capacity PL Production
in ton
(105)
in 1999 (105)
1480
1120
880
4800
2646
700
875
1070
427
700
864
760
5400
873
1051
1642
7400
1424
1700
726
627
258
768
544
909
935
800
2000
600
6000
5000
500
2000
1200
500
500
500
500
2000
500
300
1000
2600
1000
600
2800
700
700
1000
1800
1000
2000
na
na
0
0
1310
0
na
na
na
na
na
na
300
na
na
na
na
70
52
960
0
600
225
na
70
na
Actual
PL Production in SHAB quota for Production
2000 (105)
2001
2001(105)
600
1165
95
3100
4252.75
500
350
450
0
0
280
151.5
950
na
200
1000
400
400
200
400
0
80
485
0
585
1000
57,460,554
43,483,663
34,165,735
186,358,554
102,730,153
27,177,289
33,971,611
41,542,428
16,578,146
27,177,289
33,544,540
29,506,771
90,461,548
33,893,963
40,804,759
63,750,155
90,112,126
55,286,371
23,916,015
28,186,731
24,343,086
10,016,773
29,817,369
21,120,636
35,291,651
36,301,094
875
563
440
2528
2318
300
726
600
100
400
450
1000
1200
800
500
1400
1200
400
500
500
700
0
500
500
500
600
Technician
involved in 2001
Indian
Indian
Phillipino
Indian
Indian
Phillipino
Phillipino
Phillipino/Local
Inoperative*
Taiwan
Local
Indian
Local/Indian
Indian
Local
Indian
Phillipino
Thai
Thai
Local
Indian/Local
N/A
Taiwan
Local
Local
Local
18
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
Sonar Gaon Hatchery Ltd.
Golden Shrimp Hatchery Ltd.
Pioneer Shrimp Hatchery Ltd.
Niribili Hatchery Ltd.
Prime Shrimp Hatchery Ltd.
Thai Bangla Hatchery Ltd.
United Hatchery Ltd.
Bally Hatchery Ltd.
Sea Gull Hatchery Ltd.
Flora Hatchery Ltd.
Shimizoo Hatchery Ltd.
Modern Hatchery Ltd.
ADB Hatchery
Mausumi Hatchery Ltd.
Gulf Hatchery Ltd.
Red Star Hatchery Ltd.
Gazi Hatchery Ltd.
Blue Star Hatchery
Chingri Bangla Hatchery Ltd.
Total
Sadar
Sadar
Sadar
Sadar
Sadar
Sadar
Sadar
Sadar
Sadar
Sadar
Sadar
Sadar
Sadar
Chittagong
Dacop
Dacop
Dacop
Paikgacha
Satkhira
1995
1996
1991
1993
2000
1999
2000
1997
1998
2000
1995
1994
1984
2000
1999
1999
2000
2001
1998
3250
447
888
2715
795
599
1017
1478
304
881
1197
3377
140
?
?
?
?
?
?
57667
3600
1000
500
1200
2000
600
1500
2000
800
2000
1800
4500
50
?
?
?
?
?
?
59650
1830
180
200
730
na
200
na
600
254
0
775
4400
1295
325
25
2670
780
590
0
685
405
1800
1155
3900
126,180,271
17,354,640
34,476,333
105,409,058
30,865,635
23,255,995
39,484,719
57,382,905
11,802,709
34,204,560
46,473,164
131,111,005
?
?
?
?
?
?
12756
?
?
?
?
?
?
30274.25
?
?
?
?
?
?
1,875,000,000
2500
600
500
2300
1300
500
900
1100
500
1000
1100
2700
15
?
?
?
?
?
?
34615
Indian
Local
Inoperative*
Indian
Indian
Thai
Local
Indian
Local/Indian
Inoperative*
Local
Indian
Local
Indian/Local
Indian/Local
Taiwan
Thai
Thai
Thai
* Remained inoperative in 2001 and quota fulfilled by other operative
hathcery
Source: District Fisheries Office, Cox's Bazar; Shrimp Hatchery Association of Bangladesh
(SHAB)
19