Shrimp By-products – A Multi-Billion USD Opportunity
The effective use of shrimp by-products could generate billions of USD for businesses.
The German Agency for International Cooperation (GIZ), in partnership with the Directorate of Fisheries (under the Ministry of Agriculture and Rural Development), recently launched the “Improving Recirculating Aquaculture Systems for Sustainable Aquaculture (i4Ag)” project. The initiative aims to foster innovation and promote a circular economy in Vietnam’s shrimp industry.
By engaging various stakeholders, the i4Ag project seeks to implement advanced technologies and innovative practices, protect ecosystems, and support the sustainable development of the shrimp industry in the Mekong Delta.
Ngo Tien Chuong, head of GIZ’s Fisheries Group, identified several challenges facing Vietnam’s shrimp sector, including a farming success rate of just over 40%, high operating costs (due to frequent water changes and energy consumption), waste management issues, fragmented production, and limited value-added products. In the Mekong Delta, vocational training rates are the lowest in the country, at just 13.3%.
To overcome these challenges, the application of advanced technologies is essential to increase productivity, reduce risks, and protect the environment. In the long term, these technologies will also help farmers and enterprises cut production costs.
The i4Ag project prioritizes improving water quality and shrimp survival rates to promote sustainable aquaculture. By leveraging advanced technologies and innovative solutions, it aims to enhance the productivity, yield, and quality of aquaculture practices while minimizing environmental impact.
According to Tran Dinh Luan, Director of the Directorate of Fisheries, despite facing challenges like environmental issues, disease outbreaks, and small-scale operations, Vietnam’s shrimp industry has made significant progress. Innovations such as technology adoption and improved farming infrastructure have enhanced environmental management, reduced emissions, extended value chains, and improved profitability for both farmers and businesses.
The i4Ag project, funded by Germany’s Federal Ministry for Economic Cooperation and Development and managed by the Directorate of Fisheries, is being implemented by GIZ from 2024 to 2026 across Hanoi, Soc Trang, and Ca Mau.
Three pilot solutions are being trialed in Soc Trang and Ca Mau:
- Recirculating Aquaculture Systems (RAS): This closed-loop system conserves water, controls quality, reduces disease outbreaks, increases productivity, and minimizes environmental impact.
- Improved Shrimp-Mangrove Farming Models: These models boost shrimp survival rates through nursery rearing, improve water quality, and enhance natural feed availability for higher yields.
- Water Quality Improvement Solutions: These focus on raising shrimp seed quality and ensuring biosecurity.
Innovation is critical to advancing the circular economy in the shrimp industry, according to Dao Trong Hieu of the Department of Quality, Processing, and Market Development. He emphasized the importance of transferring recycling technologies to process shrimp by-products into high-value products for agriculture, industry, food, pharmaceuticals, and cosmetics.
A survey by the Department of Quality, Processing, and Market Development conducted two years ago highlighted significant untapped potential in this sector. Around 70% of shrimp by-products are used for animal feed, over 15% for food production, and less than 2% for pharmaceuticals.
Currently, 80–90% of shrimp by-product-based products are consumed domestically, with the remainder exported to Asian markets like China and Thailand. In 2021, revenues from shrimp by-products reached nearly VND 4 trillion. Experts believe this figure could grow significantly, potentially reaching billions of USD.
The Directorate of Fisheries reported that Vietnam’s total seafood production for the first 10 months of 2024 reached 7.9 million tons, a 2.5% increase year-on-year. Brackish water shrimp accounted for 1.1 million tons, a 5% rise compared to the same period in 2023. Shrimp exports by October 2024 exceeded USD 3.2 billion, an increase of 13%.
Vietnam’s seafood processing and export sector includes approximately 850 industrial-scale facilities, alongside 3,530 small- and medium-scale facilities catering to the domestic market. Among industrial-scale facilities, 82% focus on frozen processing, with around 350 shrimp processing facilities mainly located in the Mekong Delta and Southeastern regions, which account for 85.4% of production.
VFM
