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Higher feed prices for Indonesian shrimp farmers

25 November 2009

Indonesian shrimp farmers become less competitive on the international market as local prices for shrimp feed are increasing, according to the farmers’ association.


Shrimp is one of Indonesia’s most reliable commodities in the fisheries sector. Last year the country exported 179,409 tons of shrimp valued at $1.02 billion. Most of the shrimp was exported to United States and the EU.

Most shrimp feed is locally produced, but about 40% of the ingredients used to produce it — including fish meal, corn meal and soybean flour — is sourced internationally, mostly from Chile and Peru. Therefore, currency fluctuations can have a major impact on price. Some of the key ingredients, like soybean flour, is not produced in Indonesia.

Iwan Sutanto, chairman of Shrimp Club Indonesia (SCI), said the domestic price of feed, currently Rp 10,000 ($1.04) a kilogram, was about 15% higher than the price on the international market.

Shrimp feed accounts for about half of shrimp farmers’ total costs, Iwan said, adding that the government needed to solve the problem before producers suffered further losses. “If feed prices can be reduced, Indonesian shrimp will become more competitive". Sutanto asked the government to reduce the 5% import tariff on shrimp feed ingredients but the request was declined.

 

Source : thejakartagloble.com


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