Aquaculture farmer organizations and cluster management: concepts and experiences

Ecofriendly sustainable production
Buyers often require small-scale farmers to show that they are producing shrimp in 
an ecofriendly and sustainable way, especially in light of recent public concerns over 
the environmental impacts of shrimp farming. Farmer societies do not have farms in 
wetlands, mangrove or other sensitive areas. Farmers maintain lower stocking densities 
than shrimp farmers in other countries and minimize environmental risks by efficient 
use of resources such as energy and feed, along with minimizing the use of chemicals 
and antibiotics. NaCSA is also in the process of helping societies to substitute diesel 
for the more environmentally friendly option of electricity, as currently only 7 percent 
of farms use electricity. For this, NaCSA is targeting 200 societies in the coming year 
and hopes to save 2.4 million litres of diesel, the equivalent of a 5 400 tonne reduction 
in carbon dioxide (CO
2
) emissions. 
Improved market access through linking societies to processors and retailers
NaCSA aims to directly link each society to one processor or exporter and cut out 
the intermediary. This type of vertical integration will ensure decreased transaction 
costs for farmers and processors/exporters, allowing farmers to receive a better price 
for their produce and coordinate harvest and post-harvest practices to improve the 
overall quality of the shrimp and maintain traceability. NaCSA is raising awareness 
among exporters about the society model and its advantages in ensuring food 
safety and quality. Many exporters have shown interest in sourcing from society 
farms, especially those working with sustainability-conscious buyers who are keen 
to respond to environmental organizations and sell aquaculture products from 
sustainable sources. One such buyer is Sysco Corporation in the United States of 
America, which, according to its Web site, is “the global leader in selling, marketing 
and distributing food products to restaurants, healthcare and educational facilities, 
lodging establishments and other customers who prepare meals away from home”.
1
Sysco is currently working with NaCSA to buy shrimp from farmer societies 
to sell under a premium brand. The contract between MPEDA (the NaCSA’s 
parent body) and Sysco Corporation, which was signed on 6 October 2009, is for
10 000 tonnes of shrimp and will involve 10 000 farmers in 525 societies. This is a huge 
achievement for NaCSA and the farmer societies.
1 
See www.sysco.com (last accessed on 30 September 2009).

---