Types, Opportunities, & Complete Tips for Shrimp Export Business

Shrimp export business or shrimp exports is one of the business sectors that is being actively encouraged by the current government. This is because the Indonesian government, as a country with high yields of shrimp farming, wants to achieve the target of increasing its exports of 250% in 2024. Are you interested in exporting cultivated shrimp? Check out the tips in this article, come on!

Opportunities and Prospects for Indonesian Shrimp Exports 

According to the Ministry of Maritime Affairs and Fisheries (KKP), shrimp is still and will remain the belle of Indonesia's exports. This is due to the government's target to increase the amount of Indonesian shrimp exports by 250% in 2024. 

In 2019, Indonesia's shrimp exports reached 207,000 tonnes (more than 80% cultivated in ponds). Then in 2022, the average price of export shrimp will increase by 3%. If the increase is consistent for the next 4 years, the target of increasing exports by 250% will suffice with exports of only 425,000 tons.

This export increase target is also supported by the large number of traditional ponds that can be converted into intensive ponds to further increase the productivity of the shrimp harvest. As you already know, the stocking density for traditional ponds is only 8 individuals/m2, while the stocking density for intensive ponds is 110 individuals/m2. So, by changing traditional ponds into intensive ponds, the amount of shrimp harvest produced will also increase.

In addition to changing traditional ponds into intensive ponds, increasing shrimp production can also be done by revitalizing ponds. Revitalization of ponds is carried out by repairing irrigation canals, applying appropriate technology, and using superior fry which can grow fast during cultivation. 

Ponds with good infrastructure and standard operating procedure (SOP) that is right, can have productivity figures that are 2-3 times the national average. That is, doubling production through revitalization of pond areas is very possible to increase prospects for shrimp exports.

However, it is still difficult for Indonesian shrimp to be accepted by the European market (with a market share of 1.7%) due to existing import tariff, certification and environmental issues. Meanwhile, to penetrate the Chinese market (with a market share of 1.5 %), Indonesian farmers must reduce production costs due to uncompetitive prices. 

Therefore, to support the smooth export of shrimp, the government is required to create a conducive business climate. If it is conducive, investors will flock to support shrimp farming in Indonesia. The government can do this by:

1. Simplify & ease licensing.
2. Building infrastructure in the pond area.
3. Introduce the use of cultivation technology that is appropriate and environmentally friendly.
4. Guarantee the availability of superior shrimp broodstock.
5. Make regulations, maintain environmental sustainability, food safety, and business continuity.
6. Increase promotions and branding.
7. Reducing the level of business risk.

List of Shrimp Export Destination Countries

5 Destination Countries for the Largest Exports of Cultivated Shrimp (January-November 2021)

Based on data from the Central Statistics Agency (BPS), the volume of Indonesian shrimp exports increased by 5.33 million kg (36.13%) in January-November 2021 from the previous year which was only 3.92 million kg. This figure resulted in as much as US$36.75 million. This fantastic amount of money is because shrimp are exported to Asian countries such as Singapore, Malaysia, China, Hong Kong and South Korea from Indonesia.

Singapore ranks at the top of the list of destination countries for the largest aquaculture shrimp exports, reaching 1.89 million kg (US$8.2 million). Then followed by Malaysia in 2nd place with 2.07 million kg of shrimp (US$3.38 million). Then, export farmed shrimp to China as much as 733.3 thousand kg (13.8 million). Then, the number of exports of cultivated shrimp to Hong Kong as much as 436.03 thousand kg (US$8.57 million) and ke South Korea as much as 69.19 thousand kg (US$88.54 million).

Types of Export Shrimp and Prices

Generally, shrimp from Indonesia are exported in frozen form (frozen peeled) And shell-on. The price of export shrimp sold abroad ranges from US$8.72/kg. shrimp frozen peeled And shell-on comes from the type of shrimp:

1. Vaname Shrimp (Litopenaeus vannamei)

Vannamei shrimp cultivation has been growing rapidly in Indonesia lately. Compared to other shrimp, vannamei shrimp are superior because they can be more resistant to disease, grow faster, have a shorter maintenance period, have a high immunity rate, and provide relatively easy feeding. Vaname shrimp can also be developed using traditional, semi-intensive, and intensive shrimp pond pattern techniques. This shrimp is in great demand by the United States market because it is available in various sizes.

2. Tiger Prawns (Penaeus monodon)

Tiger prawns are native Indonesian shrimp which are also known as tiger shrimp. Tiger prawns are popular as a food ingredient because of their relatively large body size and sweet and savory taste. If vannamei shrimp are more in demand by the American market, tiger prawns are more in demand by the Japanese and European markets.

Quality Characteristics of Export Shrimp 

When selecting shrimp for export, there are several characteristics that must be considered so that only high-quality shrimp are selected. If not, there is a big possibility for your shrimp to be rejected by buyers in the importing country, or even not allowed to enter at all. To ensure the quality of the shrimp, look for the following characteristics:

1. Bright Color: The first characteristic of export quality shrimp is shrimp with bright, fresh and attractive colors. In addition, the brightness of the color must also be evenly distributed throughout the shrimp body and there must be no black or brown contamination.

2. Same Size and Shape: Uniform size and shape is one of the characteristics of export shrimp. The same or uniform size and shape will make the product look more professional and attractive to consumers in the international market.

3. Free from Dangerous Foreign Substance Content: Exported shrimp must also be free of harmful substances such as pathogenic bacteria and toxins such as histamine. In addition, export shrimp also may not be processed using chemicals that exceed the maximum limit, and contain foreign materials that should not be present in the product (filthy).

4. Low Moisture Content: High quality shrimp must have a low moisture content. This will make the product have a longer shelf life and not be easily damaged.

Shrimp Export Business Tips 

1. Complete all required documents

The Government of Indonesia has established various documents and certifications required to meet the legal and security requirements for shrimp exports. Some of the documents that are generally needed are:

• Invoice
• HACCP Certificate (Hazard Analysis Critical Control Point), at least Grade B
• NIB (Business Identification Number)
• SIUP (Trade Business License) for Processing
• SKP (Tax Assessment Letter)
• Internal Audit Records
• Registration Application Letter Registration Number
• Statement of Utilization of Registration Number

2. Pack Shrimp Neatly

Neat packaging is very important in maintaining the quality of shrimp during the export process. Make sure the shrimp are packed neatly using packaging made of materials resistant to changes in temperature and humidity. Apart from packing the shrimp neatly, you are also required to include a clear label on the package. Make sure each package is labeled with accurate information that includes the product name, net weight, expiration date, and country of origin because clear and neat labels will facilitate product identification in the destination country.

3. Meet Export Requirements

Ensure that export shrimp meets all export requirements set by the Indonesian government and export destination countries, including quality standards and document requirements. This is so that the product is accepted in the destination country and there are no problems in the export process. Typically, these requirements include the quality of the cultured shrimp, the safety of substances in the shrimp, and the presence of sanitary documents.

4. Making Export Contracts

Drawing up an export contract is the process of drafting and signing an agreement between the exporter (Mr/Mrs Farmers) and the importer (buyer in the destination country). This contract usually contains information about the type, quantity, price, delivery schedule, and other conditions of the shrimp being exported. All clauses in the contract must be fulfilled and agreed upon by both parties. So, make sure you don't just put something in the export contract, ok!

5. Ensuring Shrimp Export Payments

Confirming payment is the process of guaranteeing that the buyer has made payment before or after the delivery of goods. This is very important because ensuring that payments have been made can prevent potential financial problems. The payment used can be adjusted according to the agreement made in the contract.

6. Implement Targeted Marketing Strategy

Before developing a shrimp export marketing strategy, you must conduct market research or market research first. Market research aims to understand needs and wants, as well as input from consumers which will be very important for sellers. After that, you can promote the shrimp brand through events Aquaculture, bazaar or exhibition.

The next most important thing in the marketing strategy for food products such as shrimp is certification. In the shrimp export business, there are 2 types of certificates that you must have, namely IndoGAP (Indonesian Good Aquaculture Practices) And Technical Guideline on Aquaculture Certification-FAO. To get these two certificates, you must meet 4 criteria namely, animal health and welfare, food safety, environmental integrity, and socio-economic aspects.

In addition, there is also the traceability aspect (traceability) that you should pay attention to. Traceability (traceability) is an important part of the health, quality and safety guarantee system for fishery products according to international requirements. Every fishery product that is distributed from upstream to downstream must be traceable through the fulfillment of information flows and databases.