Shell Shock - Mangrove Deforestation Threat to Farmed Shrimp Investments
Shrimp is the most valuable traded farmed seafood commodity globally. The global shrimp market was worth $45 billion in 2018 distributed across public, private, smallholder and commercial producers. The marine shrimp industry is forecast to continue growing at a Compound Annual Growth Rate (CAGR) of 3.7% to 5.2% between 2019 and 2025.
There is value-at-risk to investors due to known regulatory changes, market shifts and biological constraints that will continue to increase in the mid-term, e.g. by 2025, though the extent of the risk is as yet unknown.
Salmon Feels the Heat
But, as demand for farmed salmon grows, production volumes and intensity are expected to increase and - as seen in parts of the agriculture sector with the application of fertilisers, pesticides and intensification at all costs - environmental issues such as aquaculture feed supply, disease and waste leakage are forecast to grow in parallel.
This Briefing Paper looks in detail at the prospects for the farmed salmon industry and makes recommendations for investors to protect their investments and help drive the industry towards more sustainable practices.
BBC World News
Mark Campanale, Planet Tracker’s Founder, explains why Fish Tracker targeted investors in seafood businesses and not the companies directly responsible for overfishing on BBC World’s Asia Business Report.