Value chain analysis of farmed shrimp sector in Tamil Nadu, south India

Abstract

Shrimp farming in India has grown considerably and has emerged as a major commercial enterprise owing to the introduction of specific pathogen free (SPF) stocks of Penaeus vannamei. The complexity and limited transparency of the shrimp value chain, make it difficult for buyers to take action on cost optimisation. Against this background, a study on value chain analysis of farmed shrimp sector in Tamil Nadu was undertaken with the objectives of analysing different input market channels, inbound and outbound logistics, value chain management (VCM) practices being adopted in shrimp farming, key challenges and finally to suggest a cost effective value chain model for shrimp farmers.  Four coastal Districts in Tamil Nadu,namely Nagapattinam, Thanjavur, Ramanathapuram and Cuddalore were selected for the study. From each District, 50 shrimp farmers registered with Coastal Aquaculture Authority (CAA) were selected randomly with a total sample size of 200. Descriptive statistics, multiple regression and factor analysis were employed for data analysis. The annual per hectre yield  andincome were estimated at 7.42 t and ₹64.23 lakhs, respectively. The overall distribution of inbound logistics revealed that almost all the inputs were transported through trucks, autorickshaws and motor cycles. The channels of distribution of various inputs were also documented. The overall farm gate price was estimated at ₹433.70 kg^-1. Among the VCM practices, feed and feeding management contributed the highest (42.95%). The results of regression model (performed on cost contribution of value chain processes to final price) and factor analysis (frequency of performing VCM processes) concluded that the shrimp farmers regularly perform VCM operations such as feed and feeding management, energy usage, application of probiotics, chemicals and minerals, check tray monitoring and sampling, while they poorly practise VCM processes of waste water management, disinfection protocol, disease management and water quality management. Suitable recommendations for better yield and final price  are also suggested.    

Keywords: Adoption, Shrimp farming, Value addition, Value chain management