Financial Feasibility of Green-water Shrimp Farming Associated with Mangrove Compared to Extensive Shrimp Culture in the Mahakam Delta, Indonesia

Abstract

This paper presents a post-hoc assessment of the introduction of intensive shrimp farming strategies, with and without green-water (GW) technology, in the Mahakam Delta where extensive systems (ES) dominate. The study also assesses the potential of integrated mangrove GW shrimp production (MGW). The method section describes the systems considered, the cost-benefit analysis applied and the assumptions for different scenarios. The data for the GW and non-GW systems were based on a survey in the Philippines. Assessing cultured shrimp yields from the total farm area showed that production from non-GW was 10% higher than from GW farms. Compared to these two systems, the MGW system produces about 20% of the total shrimp, but provides complementary livelihood options and ecosystem services. Per unit area covered, MGW system produces 20 times more shrimp than ES, while income for farmers doubles and opportunities for livelihoods enhancement associated with the mangrove area increase. Low operating costs make the ES interesting for resource poor farmers, but risks to producers and societal cost are underrated. Transferring from ES to MGW system will increase the contribution to the national economy whilst maintaining ecosystem services, that would otherwise be lost, were intensive culture systems to predominate.