THE CRUST - ISSUE #35

Chief Editor Overview CEO THE

Hi dear readers and welcome to this month’s edition of THE CRUST. This month, I had the chance to attend TARS 2025 in Chiang Mai, and it was truly a remarkable event filled with valuable insights and discussions. Many great speakers shared their perspectives, but one presentation that stood out to me was by Robins McIntosh of CPF, who posed a challenging question: Is the Asian shrimp industry model broken?

It’s important to note that comparing the two is not so straightforward. Ecuador is one country, united in its approach, while Asia represents a diverse set of nations, each with its own farming methods, challenges, cultures, and market dynamics. Ecuador’s integrated model, with extensive farms, vertical operations, and unified marketing strategies, has undeniably proven successful. But does that mean Asia needs to follow the exact same path? I don’t believe so.

Asia’s shrimp industry is indeed fragmented, with limited unity across the supply chain. This creates challenges, but it does not mean the model is failing. In fact, this diversity can also be a strength. Different countries experimenting with different approaches, adapting to their local realities. What we can certainly learn from Ecuador, how-

ever, is the power of unity. Their ability to work together under initiatives like the SSP program has strengthened their voice in the global market.

During TARS, I met many young farmers from across Asia, and it was inspiring to see that they recognize this. Many of them share a common vision: Asia must unite or risk losing ground. Unity does not mean uniformity, we don’t all need to farm the same way, but we must stand together in how we present and market our products to the world.

Encouragingly, I already heard conversations about forming movements to bring farmers and stakeholders closer together across the region. This could be the beginning of something transformative: a collective Asian voice that embraces diversity while working toward shared goals.

Amid these challenging times for our industry, such momentum gives hope. Exciting developments may well be on the horizon, and we will continue to keep you updated.

Rizky Darmawan Chief Editor

The recent decision by the United States (U.S.) to lower reciprocal tariffs has brought a glimmer of relief to Indonesia’s shrimp industry. Import duties on Indonesian goods were cut from 32 percent to 19 percent. While the reduction is notable, the rate is still considered high, mainly because tariffs on shrimp originally stood at zero before Trump first introduced reciprocal duties. In addition, Indonesia previously faced a 3.9 percent anti-dumping duty, bringing the total levy on its shrimp to 22.9 percent.

Budhi Wibowo, Chairman of the Indonesian Fishery Product Processing and Marketing Association (AP5I), told the BBC in early August that he remains hopeful for further tariff reductions on shrimp.

“I still hope our government can negotiate again with the U.S. to lower tariffs, especially on fishery products. In the joint statement between our two governments, some products are open for renegotiation—for instance, if they are not produced in the U.S. or only produced in limited

quantities. Our government will try to push for these discussions, including for fishery products,” he explained.

Staying Competitive

The impact of the tariff is already being felt, even as negotiations continue at the government level. According to Budhi, U.S. buyers have been pressing Indonesian exporters to lower their shrimp prices. That request, however, is difficult to meet, as production costs, both at the processing level and on the farm, are already stretched to the limit.

For now, many players are still in a wait-and-see mode, watching how the tariff issue unfolds. In this context, Indonesia’s competitiveness in the U.S. market is also shaped by the tariff rates imposed on other major exporting countries. In late August, India was unexpectedly hit with a 50 percent tariff—double its previous rate. This effectively left Ecuador as Indonesia’s biggest competitor, with a 15 percent tariff plus a 3.78 percent countervailing duty (CVD), bringing its total to 18.78 percent.

“I think the real impact won’t be visible right away.

We’ll likely need to wait one, two, or even three months to see the effect. That’s because the tariff doesn’t apply only to Indonesia, but also to other countries. For example, our main competitors besides Ecuador are India and Vietnam. So, we’ll need to observe how things develop over the coming months,” he said.

Even so, he stressed the importance of preparing for what’s ahead. If the tariffs remain in place, Budhi hopes local financial institutions will step in with support—whether through lower interest rates or higher credit ceilings. A 19 percent tariff, he noted, significantly increases working capital needs, since the added costs must be paid upfront when containers arrive at port. With funds only returning two to three weeks later after the goods are released, cash flow will be under greater strain.

Spotting Opportunities

Christian Brandon Limbono, Director of PT Agro Bahari Nusantara, a publicly listed shrimp producer, noted that the impact of the tariff has already been felt, particularly through falling prices. “Compared to last year, the selling

price of shrimp has dropped significantly,” he said.

Even so, Brandon urged that the situation be viewed in a broader context. Other major suppliers—including India, Vietnam, Thailand, and Ecuador—have also been hit with U.S. tariffs. India, which supplied 46 percent of America’s shrimp imports in 2024, now faces especially steep duties.

Exporters believe this could turn into an opportunity in disguise, as U.S. buyers may begin shifting part of their demand toward Indonesian shrimp.

Amid these tariff challenges, Brandon remains hopeful that Indonesian shrimp can stay competitive in the U.S. market through its quality. He shared that an American buyer company, Haven Foods, had visited and tested their shrimp. The results showed that the shrimp were free from heavy metals, dangerous

Shrimp Under Pressure: Indonesia’s Struggle in

Budhi Wibowo

chemicals, and antibiotics.

No Choice but New Markets

While the U.S. remains a key destination, Brandon emphasized that Indonesia must look beyond America to secure its shrimp future. Europe, for instance, offers strong longterm potential, with market value expected to nearly double from USD20.3 billion today to around USD40.1 billion by 2035. But exporters face a steep challenge: securing the strict certifications required by the European Union, a process that can take years. On top of that, Indonesia is currently under EU review to determine whether its shrimp industry can reliably guarantee antibiotic-free products through a traceability system recognized and trusted in Europe.

Other regions are also on the rise. Demand in the Middle East and Africa is forecast

to grow by 62% over the next eight years, from USD1.35 billion to USD2.2 billion. Globally, the shrimp market, valued at USD49.6 billion in 2024, is projected by Straits Research to more than double to USD112 billion in the coming years.

Closer to home, China stands out as a vast but complicated market. The main hurdle is price: the U.S. pays a much higher premium for shrimp than China. Competing there is also tougher, as China not only produces its own shrimp but can easily source from neighboring Vietnam and Thailand.

“And the third part would be their standards. There’s a difference in standards of shrimp being exported to America and China. And we’ve been so focused on exporting shrimp to America that we’ve already made our cultivation so that it can sell with the American standards,” Brandon said.

Still, industry players see opportunities behind the challenges. Budhi pointed out that while China is a promising market, Indonesian shrimp struggles to compete with Ecuador and India, which supply China at lower prices.

“Ecuador and India dominate China’s market with cheaper shrimp. That’s why our share

is very small, only about 1%,” he said.

Even so, efforts to tap into new markets are underway. In recent months, Indonesian exporters have been in active talks with potential buyers in China, working to align on specifications and pricing. But expansion takes time, as every market comes with its own standards and demands.

the U.S. Market

Future Proofing Shrimp Farming in Asia with Global Lessons

Returning to the theme of shrimp, The Aquaculture Roundtable Series® (TARS) 2025 was held in Chiang Mai, Thailand, on August 20–21, bringing together industry leaders for two days of discussions around three key themes: Precision, Productivity, and Profitability. A total of 52 speakers, panelists, and moderators shared fresh insights into Asia’s shrimp farming sector. The Crust highlights some of the key takeaways from the event.

The conference opened with the session “State of the Global Shrimp Supply and Demand,” highlighted by a keynote from the well-known Robins McIntosh of CPF, titled “Is the Asian Shrimp Model Broken?” He drew attention to the differences between Southeast Asia’s diverse, high-density farming systems and Ecuador’s more uniform, low-density approach. Robins stressed the importance of understanding each farm’s carrying capacity so that operations can be aligned with environmental limits.

He concluded by affirming that advanced technologies are indeed effective in Asia, but they must be paired with a shift in mindset. Environmental changes require farmers to rethink how they operate, ensuring that technology does not simply drive up production costs or limit management flexibility, particularly regarding stocking densities, which should not always be kept at maximum levels.

Pablo Montalbetti of Vitapro Ecuador continued by highlighting his country’s success in increasing shrimp production for ten consecutive years, reaching record levels. He noted that this upward trend is expected to continue, but stressed that Asia should not compete with Ecuador in terms of production volume. Instead, he emphasized, Asia’s advantage lies in focusing on branding and quality.

This point was echoed by Ding Chengwei, who explored the Chinese market and agreed that branding will be key to winning future demand. Closing the opening session, sisters Yanisa and Khemika Klomsuwan from Thailand shared how they transformed their family farm after taking over from their parents. Their story offered a fresh generational perspective on how farms can adapt to the challenges of a changing era.

State of the Global Shrimp Supply and Demand session

Pathogen Control and Disease Mitigation

This session addressed disease, which remains one of the biggest challenges in shrimp farming. John Williamson of Auranta Ireland presented an overview of major diseases and possible mitigation strategies, including the use of functional ingredients. He concluded that functional nutrition is a critical pillar of health management, complementing genetics, biosecurity, and husbandry. However, further research is needed to define nutritional thresholds and identify novel functional ingredients.

Dragoș Mircea, Founder and CEO Good Tôm shared his experience dealing with the emerging Translucent Postlarvae Disease (TPD), which has spread in Vietnam and China. He explained the early identification process, efforts to control the outbreak, and data on the disease cycle. The emergence of TPD serves as a serious warning for other countries, including Indonesia, which so far remains free from the threat. Still, vigilance is essential, with tighter biosecurity measures especially in border areas. Kit Yong, Founder Forte Biotech concluded the session by stressing the importance

of early disease detection as a way to prevent major losses in shrimp farms.

Future Trends

How can shrimp farming become more sustainable?

This question was the focus of the “Future Proofing” session. Robert Redman introduced a fresh idea that shrimp could be nutritionally modified through specialized feeds. One example is the use of algal oil to enhance the omega-3 content in shrimp.

He explained that such a strategy could create opportunities for value-added shrimp, marketed with claims of higher nutritional content to attract health-conscious consumers. In this way, shrimp would no longer be sold merely as a commodity, but as a product with distinctive advantages.

Meanwhile, Hervé Lucian-Brun shared some advice on how Asia can strengthen its shrimp industry competitiveness, one of which is by learning from Latin America’s branding strategies—an approach that can be replicated. To move forward, Asian producers need a stronger grasp of market dynamics and focus on key areas: maintaining product quality while con-

trolling costs, streamlining the supply chain from farmers to exporters, and making the most of the shrimp value chain from harvest to processing. Just as crucial is the ability to match the right products with the right markets, ensuring Asia’s position remains strong on the global stage.

Fresh Spirit of Young Farmers

One of the most engaging sessions was a pond-side chat with four young shrimp farmers from different countries: Rizky Darmawan (Indonesia), Chodpipat Limlertwatee (Thailand), Hai Nguyen (Vietnam), and Mayank Sharma (India). Representing the next generation of farmers, they brought fresh perspectives on the future of shrimp aquaculture.

The conversation explored not only the outlook and transformative changes in their respective countries but also their personal journeys on why they chose to enter the shrimp industry, the challenges of working alongside their parents, and their experiences managing their own farms—illustrated through photos and explanations of their farming methods. The discussion highlighted striking contrasts between farms in each country while showcasing the creativity of this new generation in managing their businesses.

The session closed with their outlook for the next three to five years. Their enthusiasm and optimism offered strong hope for the future sustainability of the shrimp industry.

Key Takeaways for Indonesia

Among the many topics discussed, several lessons stand out as highly relevant for Indonesia. Yet, the most pressing issue is undoubtedly the market. With current conditions showing a slowdown, competition to capture market share has become even more intense. Indonesia can learn from countries like Ecuador, which has successfully built a strong brand through its Sustainable Shrimp Partnership (SSP) program. As one speaker, Pablo, pointed out, this is no longer about producing as much shrimp as possible. Instead, the focus should shift toward branding—finding ways to attract consumers and make them choose shrimp from Indonesia.

Indonesia Shrimp Exporters Face Structural Challenges as U.S. Tariffs Reshape Trade

Indonesia’s shrimp industry, long anchored by the U.S. market, is undergoing a structural reset after Washington imposed a 19% tariff on Indonesian shrimp imports. The revised duty, announced in mid-July following intensive negotiations, represents a partial reprieve from the initially threatened 32% rate but still places Indonesia at a disadvantage against key competitors.

Diplomatic Outcome: Relief with Conditions

The tariff cut was secured after President Prabowo’s government agreed to a broad trade package, including large purchases of U.S. goods and wider market access. Officials hailed it as a “new era” in bilateral ties, but for industry players, the 19% duty still poses a heavy burden as U.S. buyers push the costs back onto Indonesian suppliers through lower prices and revised contracts.

Market Impact: Shrinking U.S. Share

The U.S. has long taken over 70% of Indonesia’s shrimp exports, worth about US$1.3 billion in 2024. But with a projected 20–30% drop in 2025, farmers are cutting back stocking, processors face shrinking margins, and nearly a million jobs are at risk. Exporters warn that the longer tariffs stay, the harder it will be to reclaim lost ground as U.S. buyers turn to other suppliers.

Competitive Landscape: India and Ecuador Advance

The gap left by Indonesia and Thailand is being rapidly filled:

• India, the world’s largest shrimp exporter, remains tariff-free and has already recorded a 12% increase in U.S. orders (April 2025). Its scale, competitive pricing, and integrated supply chain allow it to quickly capture displaced demand.

• Ecuador continues to build momentum on the U.S. East Coast, leveraging low production costs, proximity, and strong logistics to win new long-term contracts.

• Vietnam, while also subject to U.S. tariffs, benefits from diversified FTAs with the EU and U.K., giving it greater flexibility in shifting volumes.

For Indonesia, this intensifies the risk of permanent market share loss, even if tariffs are eased in the future.

Diversification Strategy: China and Beyond

As U.S. tariffs squeeze Indonesia’s shrimp industry, diversification becomes essential.

China is the most obvious target, given its massive import volume—larger than the U.S.—yet Indonesia’s share sits at just around 2%. The low penetration is not due to weak demand, but rather import duties, complex regulations, and strong competition from Ecuador, which enjoys cost and logistical advantages.

Breaking into China will require government-led negotiations for tariff relief, stronger compliance with sanitary rules,

and partnerships with Chinese distributors. It is a market of scale, but one that can only be unlocked with medium- to longterm investment.

Beyond China, South Korea, Taiwan, and the Middle East present modest but steady alternatives. Here, Indonesia has also struggled. Korea and Taiwan lean toward suppliers like Vietnam and India, who benefit from preferential trade agreements and offer more value-added products such as cooked or breaded shrimp. The Middle East, meanwhile, is highly price-sensitive, favoring low-cost suppliers like Ecuador, while also requiring strict halal certification that adds complexity for Indonesian exporters.

These regional markets will not immediately replace lost U.S. volumes, but they do offer important diversification channels. To succeed, Indonesia must expand its value-added product portfolio, strengthen market-specific certifications, and push for fairer trade terms to match competitor advantages.

Structural Priorities: Moving Beyond Commodities

Industry analysts emphasize that Indonesia must reposition itself to remain competitive:

• Value-Added Processing: Cooked, peeled, and breaded shrimp could reduce exposure to commodity price swings and attract higher margins.

• Certification & Traceability: Meeting stringent sustainability and food safety standards is essential to maintaining access to premium buyers.

• Logistics & Supply Chain Modernization: Investments in cold-chain infrastructure and digital tracking will be critical to reducing costs and improving reliability.

Without these adjustments, Indonesia risks being locked into a low-margin, high-risk position within the global shrimp supply chain.

Outlook: A Market in Transition

Indonesia’s shrimp sector now faces a dual challenge: navigating immediate export disruptions while laying the groundwork for long-term competitiveness. The U.S. tariff deal bought breathing space, but not immunity from structural pressures.

The strategic question for exporters is no longer just whether they can regain lost ground in the U.S., but how quickly they can pivot toward higher-value products and diversified markets. India, Ecuador, and Vietnam are advancing rapidly; India by capturing U.S. orders with its low-cost production, Ecuador by leveraging scale and logistics to dominate both the U.S. and China, and Vietnam by using trade agreements and processing strength to expand in premium markets. Supply chains are shifting, and the window for Indonesia to adjust is narrowing.

As one industry observer noted: “The tariff is the spark, but the real issue is whether Indonesia can evolve beyond bulk shrimp exports. That will determine its place in the next decade of global seafood trade.”

As a leading export commodity to developed countries such as the United States, the European Union, and Japan, shrimp must meet strict food safety standards. Among the key requirements in these markets is that shrimp be completely free of antibiotics. Even the slightest trace of antibiotic residues can lead to an immediate ban at the border. The European market goes a step further, requiring proof that shrimp are antibiotic-free all the way back to the farm level through recognized traceability systems.

Because the shrimp industry relies so heavily on exports, meeting antibiotic-free standards is no longer optional but a necessity across every stage of the supply chain. Farmers have long worked to avoid using antibiotics to keep access to international markets, while the Ministry of Marine Affairs and Fisheries (KKP) has consistently upheld and strengthened its antibiotic ban to safeguard the industry’s sustainability.

The Risks of Antibiotic Beyond simply meeting consumer demands, raising shrimp without antibiotics also supports the long-term sustainability of production. Researchers have long warned against the use of antibiotics in animals produciton—not only because of food safety concerns but also due to the threat of antimicrobial resistance (AMR).

Once pathogens develop resistance, they become harder to control, leaving farmed animals more exposed to disease. This is particularly critical for shrimp, which lack a specific immune system.

Prof. Esti Handayani Hardi, a lecturer at the Faculty of Fisheries and Marine Science, Mulawarman University, explains that pathogens can adapt and survive antibiotic exposure, making subsequent treatments with the same dosage ineffective. Pathogenic bacteria, she adds, carry resistance genes embedded within their genetic material.

“For example, Vibrio harveyi has already developed resistance to various antibiotics such as trimethoprim-sulfamethoxazole, chloramphenicol, erythromycin, and streptomycin,” she says.

According to Esti, bacteria develop resistance easily because antibiotics are typically composed of single compounds that target only specific pathways or components within the bacterial cell. These include processes such as cell wall synthesis, protein synthesis, DNA replication, and folate metabolism. When just one of these pathways is disrupted, it becomes easier for bacteria to mutate and adapt, ultimately making them more resistant.

Beyond the risks within shrimp ponds, Esti also warned of the dangers of AMR to the wider environment. Resistant bacteria have the ability to transfer their resis-

tance genes to other bacteria in aquatic ecosystems. This creates a cycle of AMR spread that is difficult to control and can undermine overall environmental health. Moreover, resistant bacteria originating from aquaculture can enter humans either through the food chain or through direct contact with contaminated aquatic environments.

“Treatment failures caused by antibiotic resistance pose a serious threat to the longterm sustainability of shrimp farming. If antibiotics lose their effectiveness, farmers will struggle to control disease outbreaks, which could disrupt food supplies and undermine livelihoods,” says her.

Sustainable Alternatives

Antibiotics are more than just something that must be phased out—they are no longer necessary, as there are far more effective alternatives available. Traditionally, antibiotics have been used in a curative manner, administered only after shrimp become sick. However, this approach has proven to be less effective in aquaculture. Instead, disease prevention through proactive measures

Why Antibiotic-Free Practices Are Key to Sustainable Shrimp Aquaculture

remains the best strategy.

Rather than relying on antibiotics, Esti recommends a series of preventive measures by tightening biosecurity and complementing it with additional treatments such as probiotics, prebiotics, immunostimulants, and natural antimicrobial compounds derived from plants.

Probiotics are already widely used in shrimp ponds. They help maintain the balance of microorganisms in both the shrimp’s gut and the pond environment, regulate the intensity of pathogenic bacteria, stabilize conditions, and disrupt bacterial quorum sensing, thereby suppressing pathogens and reducing their virulence. In addition, certain probiotic strains can produce antibacterial compounds that directly kill or inhibit the growth of harmful bacteria.

In addition to probiotics, immunostimulants are also widely used in shrimp farming to strengthen the animals’ immune system. These can come from both plant/herbal and non-herbal sources. According to Esti, plant extracts are a promising source of

antibacterial compounds and have the potential to replace antibiotics in aquaculture. These compounds have diverse structures and mechanisms: they can disrupt bacterial cell walls, inhibit bacterial division, damage cell structures, combat parasites, and even block viral replication.

“Certain bioactive compounds in plants, such as flavonoids, saponins, and polysaccharides, can stimulate various immune cells and components, including lymphocytes and macrophages, while also accelerating antibody production. This makes the immune system more effective in fighting infections and diseases,” she explains.

Plant extracts can also act as prebiotics, supporting the growth of beneficial bacteria in the shrimp’s digestive system. Extracts containing carbohydrates such as oligosaccharides—MOS, FOS, and GOS—help maintain the balance of probiotics in the gut and overall host system.

Esti also says that plant or herbal extracts generally carry a much lower risk of inducing bacterial resistance compared to synthetic antibiotics. This is because their diverse bioactive compounds work synergistically, targeting multiple pathways or components within bacterial cells. Such varied and complex mechanisms make it far more difficult for bacteria to develop resistance, as they would need to adapt to attacks from

several directions at once.

In addition, natural antimicrobials carry a very low risk of leaving residues in farmed animals or humans. This risk generally arises only when a single compound from the extract is used in isolation. By contrast, when crude extracts containing a broad spectrum of bioactive compounds are applied, the likelihood of residue issues is highly unlikely.

Strengthening Advocacy

As the association representing intensive shrimp farmers, Shrimp Club Indonesia (SCI) has been actively working to ensure shrimp farming remains antibioticfree. These efforts range from publicly declaring its renewed commitment to antibiotic-free farming—an initiative held some time ago—to ongoing advocacy with regulatory authorities such as the Indonesian Food and Drug Authority (BPOM).

According to SCI Chairman Prof. Andi Tamsil, the association has urged the relevant authorities to ensure that antibiotics—particularly those that can be used in aquaculture—are not freely available, including through e-commerce platforms. BPOM and SCI have also agreed to strengthen their collaboration in combating the use of antibiotics in the field. This joint effort will soon be formalized through the signing of a Memorandum of Understanding (MoU) between the two parties.

Pirates in Pop Culture

Pirates have always held a strange grip on our imagination. They’re outlaws, adventurers, and sometimes even heroes. Over time, stories about them have shifted dramatically— swinging from romanticized rebels to reminders of harsh reality. Four iconic depictions show just how wide that spectrum can be.

Treasure Island (Novel)

Robert Louis Stevenson’s 1883 novel Treasure Island shaped the pirate image we still recognize today—treasure maps, parrots, and peg legs. Its central figure, Long John Silver, was clever, ruthless, and oddly charismatic. He embodied both the danger and allure of piracy, creating a blueprint that countless stories would later borrow from.

Pirates of the Carribean (Movie)

Jump ahead to Disney’s Pirates of the Caribbean, where Captain Jack Sparrow brought piracy back to life for a modern audience. Eccentric, witty, and far more interested in rum than plunder, Jack turned piracy into something mischievous and entertaining. He isn’t feared so much as celebrated—a trickster rogue who made piracy fun again on the big screen.

One Piece (Manga)

In Eiichiro Oda’s long-running manga and anime One Piece, pirates are reimagined not as villains but as dreamers. Monkey D. Luffy and his crew chase freedom, loyalty, and adventure rather than gold. These pirates embody resilience and friendship, reshaping the pirate archetype into something inspirational for a new generation.

Captain Phillips (Movie)

Then comes Captain Phillips (2013), based on the hijacking of the Maersk Alabama by Somali pirates. Here, piracy loses all its playful trappings. It is raw, tense, and deeply human—showing piracy as a desperate act born of poverty and broken economies. The famous line, “I’m the captain now,” reminds us how starkly different reality is from myth.

Together, these portrayals highlight two sides of the same coin. On one side, pirates are freedom, mischief, and the thrill of chasing the horizon. On the other, they’re a reflection of real-world inequality and survival at sea.

IN CRUST WE TRUST

Cover : Aladam

Veni

My secret to joy in life is in finding balance Balance in family, sweating, and making decisions