Marine Finfish

Aquaculture in Asia
Sih Yang SIM
Coordinator Marine Finfish Aquaculture Program
Network of Aquaculture Centres in Asia-Pacific
Bangkok, Thailand
Email: sim@enaca.org

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Marine Finfish Aquaculture

Past five years developing at a rapid pace
Indonesia, Malaysia, Vietnam

Included in development plans of most

Governments in the region
Mostly medium/high value carnivorous species
aimed at export markets/live fish trade
Improvements in hatchery production of more
species, e.g. groupers, cobia, snappers,
pompano, threadfin, etc.
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Marine & Brackishwater Carnivorous

Finfish Production in Asia (FAO 2006)
1400
1162

Production ('000 t)

1200
961

1000

976

780
800

862

659

600

1024

693

486
590

400

461

200
0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Year

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FAO Grouper Statistics 1996-2005

1996 1997 1998 1999 2000

2001

2002

2003

2004

2005

Asia

5,321

5,880

5,871

8,507

9,574

12,905

22,542

52,808

59,135

65,362

China

1,110

1,036

312

280

523

910

325

27,622

33,801

39,429

Chinese Taipei

1,883

2,525

3,471

4,122

5,053

5,386

12,367

11,564

12,512

13,582

Indonesia

1,759

1,159

3,818

7,057

8,665

6,552

6,883

Malaysia

857

799

465

948

1,217

1,101

1,399

1,977

2,284

2,572

Thailand

774

793

1,390

1,143

1,332

1,443

1,170

2,338

3,574

2,280

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Top 5 Producers in Asia

Top 5 Grouper Producers in Asia 2005

Chinese
Taipei
21%

Thailand
3%

Malaysia
4%

China
60%

Indonesia Others
2%
10%

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Hong Kong Import Statistic 19972004

Total Import

1997

1998

1999

2000

2001

2002

2003

2004
13,306

27,735

23,603

13,583

15,099

12,085

11,905

12,122

Thailand

3,538

2,990

3,019

3,020

3,182

2,755

China

1,176

1,845

1,817

2,089

2,605

2,731
1,558

Philippines

662

1,215

1,205

1,433

1,585

Australia

441

750

1,152

1,393

1,137

982

Indonesia

1,098

1,167

1,284

1,193

1,000

1,041

Malaysia

783

502

483

497

644

965

Chinese Taipei

1,080

1,031

471

102

207

315

Vietnam

191

188

200

132

23

45

PNG

1.4

3.1

Fiji

0.7

14

9.2

Marshall Islands

1.6

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Hatchery Practices Indonesia

small-scale low investment &
low cost backyard hatcheries
fast return
increasingly capital
intensive; medium- & largescale hatcheries established
groupers (humpback, tiger,
orange-spotted, coral & coral
trout), milkfish, trevally,
snappers, etc.
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Hatchery Practices - Malaysia

capital intensive
medium- & large-scale
mix of tank & pond systems
limited species produced
majority of marine finfish
species farmed rely on
imported fingerlings
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Hatchery Practices - Thailand

commercial production
limited to seabass
grouper species from
government stations
many marine finfish
species farmed in
Thailand still rely on
imports or wild seeds
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Farming Practices
Indonesia
mainly floating
cages
medium- to largescale
concrete tank
culture - limited
capital intensive &
high investment
mix of trash fish &
artificial diets
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Farming Practices Malaysia

floating cages &
ponds
medium- to largescale
relatively capital
intensive
mix of trash fish,
artificial diets, bakery
products, etc
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Farming Practices Thailand

mix of floating cages
& ponds
small- to mediumscale
low investment
capital
mainly trash fish
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Farming Practices Vietnam

mainly floating cages
small- to mediumscale
relatively capital
intensive
increasing foreign
investors
mostly trash fish
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New Practices
Sophisticated systems
Very expensive to set up
Are they suitable for the intended
species and locations ????

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Constraints for Marine Finfish

Aquaculture

Seed supply
Feeds
Farming methods
Broodstock
Price & Markets

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Constraints Seed Supply

Seed supply
survival of many species still
low (e.g. grouper 5-10%,
seabass >30%)
deformities
inconsistency in supply
quantity & quality
still reliance on wild caught
juveniles for many species
stocking issues seasonality,
size variation
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Constraints Grouper
Fingerlings
hatchery produced fingerlings
are widely used
hatchery/nursery stages tiger
groupers fingerlings are fed
mysids
result in reduced cannibalism
trash fish/low valued fish are
used at nursery stage
so most hatchery produced
tiger grouper fingerlings are
not wean onto artificial feed
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Constraints - Feeds
Groupers are carnivorous species
and prefer high protein feed
Three forms of feed used
Commercial feed
Farm made moist feed
Trash fish

Trash fish remain the dominant

feed source
Commercial feed is still a
relatively new concept for many
small-scale grouper farmers
Limited uptake by grouper farmers
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Feed Types Advantages vs

Disadvantages

Trash fish
cheap, easily accessible, better grow
rate
disease transmission
seasonality
resources sustainability
environmentally less conducive
Artificial feed
reliable supply
less polluting
storage easier
expensive
limited availability in some areas
underperforms (farmer perceptions?)
generic feeds

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Feed Cost in Grouper

Farming (Sim, 2006)
In Indonesia feed cost consists of
32.2% for trash fish
40.2% for commercial feed

In Thailand feed cost (trash fish) consist of

51.8% in cage system
57.5% in pond system

In Vietnam feed cost is relatively lower

23.4% in cage system (due to lower trash fish cost)

As feed cost consist of a large proportion

of the cost of production for grouper
farming it is important that the cost is kept
as low as possible and improve feed
efficiency
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Economic Analysis Feeds

(Sim, 2006)

Economic analysis shows

that trash fish is still cheaper
For grouper farming
equilibrium feed cost level for
trash fish vs artificial feed is at
FCR 13:2.6 - US$0.20/kg vs
US$1.00/kg

For small scale farmers trash

fish still more attractive
even saving is minimal

Traditional cultural practices

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Commercial Feed Issues

FCR is high 2.64 (Sim, 2006)

Follow up field visits to various locations in
Indonesia confirm similar FCR and some even >3
However at R&D level the FCR claimed to be 2
What are the reasons behind the differences:
Feeds management of farmers is poor?
Feed quality not good?
More improvement is needed for the feed R&D?

Generic feed which is claimed to be suitable for

all marine carnivorous finfish species
For example, seabass and grouper require
different nutrient and fat levels but feed
companies treat them as same group
Feeds are also harder and grouper tend to spit
out after ingest the feeds thus wastage

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Indonesia - seabass farm

Medium scale farm about
60 ponds
Feeds interchange
between trash fish and
commercial feeds
FCR slightly less than 2 for
commercial feed
Feed price US$ 0.85/kg
Fish farm-gate price
US$2.70/kg
Trash fish FCR 6 - 6.5
Trash fish price US$0.20/kg
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Constraints Farming
Methods
Methods - low cost &
simplicity
Positive and Negative
easy entry level
cheap operation
not mechanically
complicated
switch
easy termination
make quick cash
sustainability?
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Constraints - Broodstock
Changing sex
Expensive & limited
supply
Broodfish recruited
from same sources
Genetic issues

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Constraints Price & Markets

Excess supply
Price fluctuation
Niche markets
Seasonality

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Example Grouper Farming

in Thailand
Price oriented vs focus on cost
reduction & regularity of supply
groupers price drop to US$5-6/kg
lobsters price US$40/kg
switch to lobster farming due
to higher profit margin

Less competitive compared to Vietnam

transportation cost issue high oil price
currency strengthen
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Example Grouper Farming

in Indonesia
Excessive production of groupers -fingerlings & table fish
Drop in hatchery & farm gate prices
Tiger grouper -- US$12/kg to US$6-8/kg
Coral grouper -- US$0.23/tail to
US$0.08/tail (3 cm)

Many small scale farmers stop

farming
Typhoon in Vietnam led to
shortage of tiger grouper supply so
price back to US$11-12/kg
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Groupers Market Price in

Indonesia
Species

Table Size

Fingerling

(>500 g)

(Indonesian Rupiah)

US$50/kg

Rp 1,700/cm

US$14.5/kg

Rp 800/cm

Coral Trout

US$20/kg

Rp1,700/cm

Giant Grouper

US$12/kg

n/a

Humpback Grouper
Tiger Grouper

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Groupers Market Price in

Hong Kong & Southern China
Species

Hong Kong

Guangzhou

n/a

US$89.15

US$52.38

US$67.54

P. maculatus

n/a

US$40.52

P. areolatus

n/a

US$32.42

Tiger Grouper

US$20.95

US$23.23

Giant Grouper

n/a

US$12.43

E. polyphekadion

US$30.30

US$32.42

Green Groupers

US$14.57

US$12.16

Humpback Grouper
Coral Trout

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Example Grouper Farming

in Malaysia
Mixed of various marine finfish
species
Grouper only around 30%
Markets mixed of locals &
overseas
SARS period not affect too
much

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Economic Analysis for

Hatchery (Sim, 2006)
Small scale grouper hatchery
business is a good investment option
Provide lucrative returns even at a low
survival rate 3%
If production cost and price remain stable
( US$0.10/fingerling)
High risk but if run successfully can
provide IRR as high as 154%

The price and survival rate are the

two main factors that determine the
profitability and sustainability of the
hatchery
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Important Matters Hatchery

Development
Species
Broodstock
Availability of good
quality fertilized eggs
Production system
Infrastructure
Markets
Price & Profitability
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Market Chain Model (Sim, 2006)

Government R &
D Centres
Large Hatcheries

Fertilised eggs

Small- and
Medium- scale
hatcheries

45-60 days
fingerlings (2-3
cm)

>6 cm
fingerlings
for grow-out

Farmers
(nurse and
grow-out)

>6 cm
fingerlings
for grow-out

Nurseries
produce > 6
cm fingerlings

45-60 days
fingerlings (2-3
cm)

Traders/
Exporters
for domestics and
exports

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Economic Analysis for Growout (Sim, 2006)

Cost of production
US$5.48-11.04 (Thailand)
US$5.38-11.32 (Vietnam)
US$8.32-11.49 (Indonesia)

Fingerlings and feeds are

the two majors costs
13.2% & 51.8% (Thailand)
20.0% & 42.3% (Vietnam)
35.3% & 32.2%; 46.8% &
40.2% (Indonesia)
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Economic Analysis for Growout (Sim, 2006)

Grouper farming is a lucrative

business if the farmed species
command high farm gate price, such
as humpback grouper (IRR 326-476%
- 5 years)
Lower price grouper species such as
green groupers - stable farm gate
price is needed (IRR 180% - 5 years)
Price driven rather than focus on
production cost reduction
More cost efficient and farming more
effectively
Improve survival rate and feed
management

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Important Matters Grow-out

Development
Species
Availability of good quality
fingerlings
Production system
Infrastructure
Markets
Price & Profitability

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Issues Related to Farming for

Export
Demand fluctuation
economic condition of the
importing countries
events that affect economic
conditions and travel; e.g.
SARS
seasonal fluctuation

Supply fluctuation
quantity produced
stocking & consistency
typhoon, tsunami, etc?

Other factors
currency fluctuations
crude oil price (below US$50 to
US$100)

Competitiveness of
your produces
Cost of production

Species
Groupers or seabass, etc

Production systems
Floating cages, ponds,
etc

Where are your

markets?
Local, regional, overseas

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Positive of Marine Finfish

Farming
less depends on wild
caught both ornamental
& food fish (fingerlings and
table fish, e.g. groupers,
snappers, trevally,
Nemo, seahorse, etc)
less damage to the natural
resources (e.g. coral reef)
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Thank You

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