Aquaculture farmer organizations and cluster management: concepts and experiences

Increased access to good-quality inputs
Cooperative members are now able to access higher-quality inputs such as seed, for 
which the cooperative has negotiated credit for members along with a 30-day guarantee 
period. The new seed is faster growing and results in a shorter harvest time, resulting 
in reduced costs for energy and feed. Two of the farmers interviewed estimated the 
savings to be approximately THB 30 000 per pond per crop.

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Aquaculture farmer organizations and cluster management – Concepts and experiences
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Premium price
Cooperative members who have sold their product under contract arrangement 
are receiving a price that is 15 percent higher than that offered by the market. The 
FOSCOT’s contract with the national seafood processing plant also gives cooperative 
members a premium price.
Improved quality, production and income
Before the cooperative was established, farmers experienced many production problems 
related to high stocking densities and other bad management practices. However, 
implementation of cooperative regulations has resulted in higher levels of productivity 
and larger and healthier shrimp. This has led to increased prices and income for 
cooperative members. In addition, 80 percent of farmers are producing “Bio Shrimp”, 
which is based on a set of standards including de-intensification of culture practices 
and maintaining seaweed in the pond. The cooperative-branded “Bio Shrimp” has been 
copyrighted and registered with the Ministry of Commerce (however, the brand is not 
yet achieving a price premium on the market).
FUTURE OPPORTUNITIES AND PRIORITIES
Access to financial services 
Access to financial services such as insurance and credit is a challenge for many 
small-scale farmers, including the cooperative members. An insurance workshop was 
arranged by FAO and the DoF
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to help develop innovative ways in which small- 
scale shrimp farmers can access insurance from private insurance companies without 
being charged prohibitively high premiums. National and international insurance 
companies, along with other development organizations and small-scale farmers, 
attended the workshop and discussed options for the way forward. Access to credit is 
also a big constraint for farmers. Currently, they cannot access credit from commercial 
banks and have to rely on moneylenders who charge extremely high interest rates. 
The cooperative has gone some way to addressing this constraint by arranging group 
credit for some inputs; however, members still require credit for other purchases 
(e.g. for shifting from diesel to electricity-powered aeration). Access to affordable 
credit would create many opportunities for farmers and is a pressing priority for the 
cooperative.