CHALLENGES IN SHRIMP PRODUCTION IN BENTRE PROVINCE 5.

1 Shrimp farming system Most hatcheries in Bentre are small-scale hatcheries, and they are usually operated by a family group. Their chief advantages are low construction and operating costs and their ability to open and close quickly in response to the seasonal demand for seed and the supply of brood-stock 5.1.2 Models of shrimp farms and scale based on an extensive or alternative model, and the trend to higher intensity. Small-scale operations vary in terms of shrimp culture methods, diseases, and how they treat the environment. The danger involved in such operations is that the small-scale operator often lacks the ability to take on the responsibility for following regulations or the technical standards because of a poor economic situation or lack of knowledge or both. 5.2 Environmental issues The rapid development of Bentres shrimp farming has already been causing imperative environment problems in the short-term and long-term such as the degradation of mangrove forests, ecological imbalances, threats of environmental pollution and the spread of epidemic diseases. 5.2.1 Destruction of natural habitat and reduction of mangrove forests One of the most serious environmental problems is the pressure of expanding shrimp farming on the coastal environmental resources, particularly the mangrove forests. Mangroves are under high pressure from a suite of development activities, including overexploitation for firewood and charcoal production, conversion to agriculture, salt farming, and coastal aquaculture. The relative contribution of these different activities to mangrove destruction varies widely according to purpose and there is no doubt that shrimp farming has been a significant cause of destruction.Simply controlling shrimp farm development will not save the mangroves. A much broader policy, planning, and regulatory framework will be required to stem the degradation of coastal resources. 5.2.3 Organic matter and nutrient pollution The development of intensive farming always goes together with farmers using more and more shrimp feed, drugs, products and chemicals. Redundant shrimp feed and wastes without being treated are thrown directly into the environment, polluting rivers and coastal inhabitations, destroying ecologies, and reducing the biodiversity. The risk of spreading epidemic diseases, which damages farmers economically, is significant along with the degradation of water quality and the environment. 5.2.5 Diseases In recent years, The White Spot Virus Disease is the most common and serious shrimp disease

affecting shrimp farms. In Vietnam, attempts to eradicate the disease have so far failed. The White Spot Disease was probably responsible for the major shrimp farming disasters in all shrimp areas in Vietnam. In 2005 the disease outbreak had spread to 1,190 ha of shrimp farms in Bentre, while the area affected by the disease had increased to 1,259 ha in 2006 (DoFi Bentre, 2007b). 5.5 Financial ricks associated with shrimp farming shrimp culture tend to move to higher intensity, from extensive production to semi-intensive and intensive (Bentre people's committee, 2003). In general, financial risks increase with increasing intensity. In more intensive systems, the probability of loss and the cost of such losses if they do occur are likely to be higher. Although average returns may be higher, they are subject to larger fluctuations in response to factor prices, market prices, and losses from diseases or environmental factors Shrimp price One of the most important factors influencing the economic performance of shrimp farming is the farm-gate price of the shrimp. Shrimp prices fluctuate greatly, especially in the beginning and the end of a production cycle. The price normally declines during the harvest season. During the boom years of shrimp development in Vietnam, it was estimated that shrimp farming was responsible for a 40 % drop in prices in the period 1999-2006, especially when Chinas cultured shrimp came on the market in great quantities. Whereas the price of input factors increases rapidly, it means that the shrimp farmers are facing big challenges in the present and in the future. It is reasonable to assume that farmed shrimp will have an increasing effect on market prices. In addition, the commercial barriers from import countries have been reducing shrimp export volume, therefore shrimp gate prices have been reduced also. 5.6 The policy for shrimp farming development However, the deployment of these policies has produced many drawbacks. The planning, seed, capital, environmental management and epidemic disease control have not yet met the demands of a sector with a very high growth rate. The policy goals