Reviving the Philippine Prawn Industry

The Philippines is used to be the world's second biggest producer of prawns and shrimps during the 1980s, next to Taiwan.

I personally witnessed the heydays of the industry as I underwent an on-the-job training for prawn trading under the tutelage of my father who was then the purchasing director of Philippine Marisco Corporation, the leading prawn exporter at that time. I had a chance to visit vast prawn farms in Orani, Bataan and Guagua, Pampanga.

During that decade, production rate averaged about 100,000 metric tons yearly, but today the country produces only 24,000 to 30,000 metric tons a year, or a decline of more than 70%.

The strong earthquake that jolted the northern part of the country, followed by the eruption of Mount Pinatubo, created a huge negative impact to prawn farming. It precipitated the industry's collapse.

Lahar from Pampanga flowed into the river and buried vast hectares of shrimp ponds and prawn farms. Coupled with unsustainable practices, prawn diseases and technological lag, the industry finally hit the bottom in the 1990s.

From then on, the industry was virtually pronounced as "dead" by most economists. But for the past few years, sustainable growths were achieved brought about by the country's robust economic gains. However, this year it reels from the effects of high fuel prices and strong peso, and production costs are reported to grow by 15% by year-end.

A study made by the Philippine Institute of Development Studies in 2000 had said that the high cost of prawns / shrimps is due to the low 20% survival rate of larvae and lack of refrigerated transport. It is the lack of modern facilities that prevented or limited the local industry's competitiveness in the global market.

PhilShrimp Inc. president Roberto Gatuslao said, during the 6th Philippine Shrimp Congress held last May 28, was that the shrimp industry could treble its export earnings from US$34-million in 2007, when it exported 40% of its production, if a modern technology would be in place that will enable prawn exporters to ship products to Europe. Currently, the Philippines' big markets were only Japan and Korea.

Sen. Edgardo Angara, who also grace the event as guest speaker, recommended intensified research and development must be in place as this would be essential to the survival of the Philippine shrimp industry especially if local exporters are seeking more markets abroad.

Aside from the senator's recommendation, other recommendations were also discussed during the three-day event, which include tapping 106,000 hectares of unused brackish water ponds; introduction of cost-effective, environment-friendly farming practices; and genetically improving shrimps and prawns.