Do you want to initiate a profitable shrimp farm? Find here a detailed guide on how to start a shrimp farming business. Also, the article includes equipment needed, different shrimp culture techniques including marine and freshwater farming, startup cost, profit, etc.
Generally, commercial shrimp culture comes under the aquaculture business. There are several different ways you can raise shrimps for profit. These are marine culture, freshwater farming, and indoor farming. Even, if you don’t have water bodies, you can raise shrimps in large tanks. However, you must have enough space for keeping the tanks.
Both the fresh and processed shrimps have good market demand. In addition to that, it has good export potential too. Globally, the United States of America is the bigger consumer and importer of shrimp. And South Asia is the biggest producer of shrimp. Some of the major shrimp-producing countries are Indonesia, China, Thailand, Vietnam, and India.
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Is Shrimp Farming Business Profitable?
Currently, the farmed white leg shrimps have the highest demand in the market. And the demand is increasing at a CAGR of 5% in the last couple of years. Trending demand for seafood products is one of the major factors that is fuelling the growth of different species of shrimps. Additionally, consumers across the globe are shifting their food habits towards the consumption of healthier food products.
The increasing urban population in developing regions leads to an increase in the demand for seafood products. Moreover, the rising tendency of spending on seafood products is expected to drive demand for various types of species of shrimps.
Consumer demand for fresh and frozen seafood is also a major contributor to the growth of the global shrimp market. So, starting a shrimp farming business is highly lucrative for entrepreneurs who want to start an aquaculture project.
Things to Consider in Shrimp Farming Business
- First of all, starting a shrimp farming business demands upfront capital investment. And the specific requirement depends on the farm size and production output you need. So, you must be prepared for that.
- The variety of the shrimp plays an important role in yield and hence profitability. So, choosing the right variety is highly important.
- Though the business doesn’t demand any specific educational background you must have some knowledge and skill. At least, you must have an experience in farm handling for 1 or 2 years.
- According to the place you live, you must consider the farming technique. If you live in the coastal areas then marine shrimp farming is a lucrative option. Otherwise, you can opt for pond culture or indoor shrimp farming in tanks.
Different Types of Shrimp Culture Technique
a) Marine Shrimp Culture
Actually, marine shrimp culture is popular as saltwater shrimp farming. It is a traditional method of farming. Nowadays, you can find some modern shrimp culture techniques that include both intensive and extensive farming for better yield.
b) Freshwater Shrimp Farming
Generally, freshwater shrimp farming is suitable mostly for the warmer climate. Actually, the freshwater shrimp farming processes include growing out your juvenile shrimps into adults, and marketing them for profit. Also, you raise the shrimps in tanks.
c) Indoor Shrimp Farming
Even, if you don’t have water bodies, you can shrimp. In that case, you can raise the shrimp in the large tanks. Also, you can use both rectangular and circular tanks for farming.
Here are the 8 Steps to Start Shrimp Farming Business
1. Create a Business Plan
It is essential to write a business plan for your shrimp farm. The shrimp farming business plan document must include important aspects like cost and investment, unique selling propositions, pricing plan, manpower plan, financials, and how do you plan to sell matured shrimps.
If you are looking for funds, it is advised to get the document written by professional plan writers. Because all investors or financial institutions will ask for this business plan document before funding your business.
2. Obtain Required Licenses and Permits
In most states, this type of aquaculture business demands specific permission from the Govt. authority. So, you must contact the local authority for getting permission for pursuing an aquaculture business.
3. Site Selection
The overall success of a shrimp farm highly depends on the quality of the pond. Generally, freshly dug ponds are not suitable for farming because there is not enough supply of food available in the ponds. Actually, shrimps prefer to eat insect larva and algae, which you can’t find in the new ponds.
Also, you can use water containers, large fish tanks, and swimming pools. However, a natural pond yields the best shrimp production for commercial farming.
4. Select the Type of Shrimp Hatchery
Generally, there are three different types of hatcheries you can find. Small-scale hatcheries are very common. These hatcheries use small tanks (less than ten tons) and often low animal densities.
Greenwater hatcheries are medium-sized hatcheries using large tanks with low animal densities. To feed the shrimp larvae, an algal bloom is induced in the tanks. The survival rate is about 40%.
Generally, large-scale industrial hatcheries use a closed and tightly controlled environment. They breed the shrimp at high densities in large (15–30 t) tanks.
5. Cost of Starting A Shrimp farming Business
The investment will largely depend on the size, production output, and the type of seeds. Approximately for a small-scale shrimp farming business, the initial cost will be in the range of Rs. 10 lacs to 15 lacs. The investment includes the cost of seed, pond maintenance, medicines, manpower, and equipment.
6. Procuring Juvenile Shrimp
The type of soil is the most critical in site selection since the shrimp will spend most of their time on the pond bottom during the culture period. Usually, clay or loam-based soil containing more than 90% clay and pH between 6.5-and 8.5 is preferable. And you must avoid the sites with sandy or silty soil due to their porous nature.
Generally, this leads to erosion, seepage of water, and easy infiltration of waste into the soil. Hence, before procuring the stock you must test the soil. Stock shrimp at the rate of 12,000 – 16,000 per acre. Lower stocking density will increase the size of your shrimp but decrease the total poundage of yield.
7. Buy Shrimp Farming Equipment
Commercial farming of shrimp demands the specific use of equipment and tools. However, it depends on the farming technique and the size of the farm. Some of the most important equipment lists include an aerator, PL counter, pumping system, etc.
8. Shrimp Feeding
Generally, the shrimps survive by eating green algae. Start feeding when the shrimp exceed the size of 5.0 grams or greater. Commercial fish feed for channel catfish is suitable for shrimp. Feeding will depend on the size of your fish.
Suggested Read: How to Start a Fish Aquarium Business
After you raise the shrimps as per market size, you must harvest them. Broadly, you can use two different methods of harvesting. These are Cull harvesting and Drain harvesting. Fresh shrimp is a highly perishable item. So, you must arrange the quick freezing method for preserving the shrimps. Otherwise, you need to send the fresh shrimps to the market quickly after harvesting.
Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.