Sustainable shrimp industry through circular economy (23-11-2024)

On November 22nd, 2024, the seminar "Kickoff of the i4Ag Project and Consultation on innovation in Vietnam's shrimp industry towards promoting a circular economy" was held in Can Tho City. The event was organized by the German Development Cooperation (GIZ) in collaboration with the Department of Fisheries under the Ministry of Agriculture and Rural Development (MARD).
Sustainable shrimp industry through circular economy
Photo 1: Mr. Tran Dinh Luan - Director General of the Department of Fisheries, and Mr. Ngo Tien Chuong - Head of GIZ's aquaculture group, presiding over the seminar.

The seminar attracted over 100 delegates, including representatives from central and local management agencies spanning 30 provinces and cities, research institutes, universities, shrimp sector associations, and enterprises involved in the brackish water shrimp value chain.

In his opening remarks, Mr. Tran Dinh Luan, Director General of the Department of Fisheries, highlighted the pivotal role of Vietnam's shrimp industry in the national aquaculture economy. The shrimp sector contributes 40% of the country's total annual seafood export value, amounting to approximately USD 4 billion. The Mekong Delta accounts for 85% of the nation’s shrimp output, with over 200,000 hectares adopting integrated shrimp - rice and shrimp - forest farming models. Despite its importance, the shrimp industry faces numerous challenges, including climate change, environmental pollution, diseases, high production costs, and low productivity. Implementing circular economy models and fostering innovation to optimize resources while protecting the environment presents significant opportunities for the sector.

Challenges in Vietnam's shrimp industry

According to Mr. Ngo Tien Chuong, leader of the aquaculture team at GIZ, Vietnam's shrimp industry grapples with low farming success rates, which stand at just over 40% compared to Ecuador's 65%. Additionally, production costs are higher than those of leading shrimp - producing nations. The Mekong Delta region also suffers from the lowest rate of vocationally trained workers in the country. Furthermore, issues such as fragmented production links and low value-added products hinder the industry's potential.

The underutilization of shrimp by products is another pressing issue. Data from the Department of Fisheries indicates that Vietnam generates 1.3 to 1.5 million tons of seafood by products annually, including 400,000 to 500,000 tons from shrimp. However, only 10 - 20% of these by products are exported, primarily for animal feed, leaving much of their significant potential untapped.

Circular economy - a solution for sustainable shrimp industry development

The circular economy (CE) model is considered an ideal solution to address the current shortcomings of the shrimp industry. CE focuses on optimizing resources, reducing greenhouse gas emissions, and increasing the added value of products. It promotes closed loop production, where waste from one process becomes input for another.

Photo 2: The seminar saw active participation from various organizations and individuals.

A prime example is the processing of shrimp by products into chitosan, protein powder, or raw materials for pharmaceuticals and cosmetics. By products from shrimp can generate 20 to 30 times the value of raw processing. If effectively harnessed, the shrimp by-products sector could not only minimize waste but also generate billions of dollars in revenue annually.

Additionally, integrated farming models like shrimp - rice and shrimp - forest exemplify successful CE applications. The shrimp - rice model uses organic waste from shrimp to enrich soil and provide nutrients for rice, while the shrimp - forest model supports mangrove forest conservation and reduces chemical input costs.

Innovations in the shrimp industry

During the seminar, Mr. Ngo Tien Chuong introduced three innovative solutions being implemented in Soc Trang and Ca Mau provinces: Recirculating Aquaculture Systems (RAS), these closed loop systems enhance water quality control, minimize disease outbreaks, improve productivity, and reduce environmental impact. Improved Shrimp - forest Farming, this approach enhances water quality, boosts shrimp survival rates, and promotes the use of natural feed. Water Quality Improvement, Innovations in this area aim to mitigate the impacts of climate change, improve seed shrimp quality, and ensure biosecurity. These innovations not only save resources but also strengthen the shrimp sector's competitiveness in international markets.

Unlocking the potential of shrimp by products

Photo 3: Delegates posing for a commemorative photo.

Mr. Dao Trong Hieu, a representative from the Department of Quality, Processing, and Market Development under MARD, referred to shrimp by-products as an "untapped gold mine." Currently, 70% of shrimp by-products are used for animal feed, over 15% for food processing, and less than 2% for pharmaceuticals. Yet, their potential for use in medicine and functional foods is immense.

Deep processing of shrimp by-products for animal feed increases value by 3 to 5 times, while their application in food processing raises value by 5 to 10 times. For functional foods, the value can increase by 15 to 20 times, and in pharmaceuticals, it can soar by 20 to 30 times. Products like chitosan derived from shrimp shells and calcium powder hold high added value but remain underutilized.

Currently, 80 - 90% of shrimp by-products are consumed domestically, with exports accounting for only 10 - 20%, primarily to Asian countries like China and Thailand. In 2021, shrimp by-product revenue reached nearly VND 4,000 billion (approximately USD 170 million). With proper development, this figure could rise significantly, potentially reaching billions of dollars annually. Mr. Hieu emphasized that shrimp by-products should be treated as primary products with even greater value potential.

Policies and community involvement

The development of CE in the shrimp sector requires close cooperation between the government, businesses, and the community. Policies such as Decision No. 687/QD-TTg on CE development and Decision No. 1658/QD-TTg on green growth provide a solid legal framework. However, additional incentives and mechanisms are needed to encourage enterprise participation in the value chain.

Human resource development and community awareness are also critical. The Mekong Delta has the lowest rate of vocational training in the country, with only 13.3% of workers receiving formal training, posing a significant barrier to adopting modern technologies.

The seminar concluded that the CE approach is an inevitable trend for the sustainable development of Vietnam's shrimp industry. With strong policy support, technological innovation, and active participation from the business community, the shrimp sector can minimize environmental impacts, enhance value-added products, and contribute significantly to the country's socio-economic development. Vietnam’s shrimp industry has the potential to become a model for balancing economic growth with environmental protection, paving the way for a sustainable future.

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