Striped catfish farming in the Mekong Delta:

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Striped catfish farming in the Mekong Delta:

Industry capacity & vulnerability

Vulnerability to development & climate change

Adaptive Capacity (continued) 450

diminishing supplies of wild-caught fish by using protein and oil substitutes, for

400

example, soybean and maize, to manufacture feed. Indeed, soybean meal use

350

by the aquaculture sector has risen sharply in recent years and further increas-

300

es in demand appear likely. However, less favorable rates of growth and product quality are achieved using these types of substitutes which would threaten the economic viability of existing operations as grow-out periods are extended

$ / tonne

Since the striped catfish is omnivorous, the industry might seek to adapt to the

Soybean meal, $/mt, real 2005$

A Scientific Brief

250

Ja n u a r y 2 0 1 3

200 150

and feed inputs increased to compensate diminished rates of growth. Moreo-

100

ver, protein and oil substitutes are themselves becoming less affordable as their

50

demand as biofuel and for direct consumption grows (Figure 3). This demand is

Soybean meal, $/mt, nominal$

0

expected to grow further in response to anticipated climate change related impacts on tropical terrestrial agriculture. The formulation of cost effective feeds that preserve protein and energy content will therefore be an important adaptation measure to maintain or expand production.

T he f orm ulation of c os t eff ect iv e feeds t hat pres erv e prot ein and energy c ont ent w ill be an im port ant adapt ation m eas ure t o m aintain or ex pand product ion.

Year Figure 3 Global market price for soybean meal, 1990 - 2011. Source: World data Bank.

Vulnerability Striped catfish farming in the Vietnamese Delta is vulnerable to development and climate change via several important pathways of potential impact. A great deal of uncertainty exists regarding which of these pathways of impact will have most bearing on the sector and therefore where adaptive management efforts might best be focused to reduce vulnerability. In particularly, whether water quality in the Delta will deteriorate to cause significant physiological, and perhaps more importantly, contaminant-related product safety, impacts. Given the industry’s already fragile reputation for product safety on its important international markets and that water treatment facilities and adaptation strategies are likely to add to production costs, addressing this uncertainty will be a priority. Less uncertainty surrounds future supplies of wild-caught fish and derivatives (fish meal and oil) used to manufacture both farm-made and commercial pellet feeds. Supplies are highly likely to decline in the future, both locally, regionally and globally exacerbating their upward cost trends. Doubt surrounds the cost-effectiveness of their substitutes which are themselves becoming more expensive. To maintain output from existing small-scale operators that are already struggling to make a profit but are still responsible for the bulk of

Is st riped c atf is h farm ing in t he Vietnam es e D elt a v ulnerable t o planned dev elopm ent and clim at e c hange in t he Low er M ek ong Bas in?

output from other producers including China, this market response seems unlikely. The industry might also be further burdened with additional costs associated with farm relocation, flood control and investment to improve broodstock management. Without the necessary compensatory market price rises, declines in farm profit and output would be expected, impacting upon dependent livelihoods and the wider economy. This conclusion has far reaching implications for food security beyond the Delta by challenging the widely-held assertion among basin development planners that aquaculture production will continue its path of growth to compensate the expected declines in yield from capture fisheries.

Priority Research Further research to improve this vulnerability assessment is described in the main report (see below). Perhaps most pressing is the need to more reliably determine the reliance of the sector on the supply of wild fish for feed from the inland and coastal fisheries of the Vietnamese Delta that are most vulnerable to development related impacts. Other priority research topics include: (i) physiological responses and tolerances of Pangasius to temperature, dissolved oxygen and salinity concentrations; (ii) water quality under future basin development scenarios; (iii) food safety of Pangasius products in response to water quality conditions, particularly pollutant and contaminant concentrations; (iv) the economic viability

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The culture of Pangasius catfish has been practiced in the Mekong Delta of Vietnam for centuries. Now it is based almost exclusively on the intensive pond culture of striped catfish (Pangasianodon hypophthalmus) exploiting its rapid growth, omnivorous diet, low dissolved oxygen tolerance, and white flesh. During the last decade, output from the sector, mostly exported to the EU and USA, has grown almost exponentially to more than a million tonnes per year with a value ap-

total production, international market demand will need to be inelastic to any necessary product price rises driven by rising feed costs. Given the downward trend in prices for Pangasius products over the past decade, and with growing

The Vulnerability Study

T his brief s eek s t o ans w er t his quest ion following t he rec ent announc em ent by t he Gov ernm ent of Lao PD R t o proc eed w it h the c ons truct ion of the f irst m ainst ream dam on t he low er M ek ong R iv er.

proaching $2 billion making a significant contribution to the country’s GDP and supporting the livelihoods of an estimated 180,000 - 200,000 people in the Delta, predominantly the rural poor. Separate seed, nursery and grow-out systems supporting a large processing sector.

Most farms are still

relatively small, farmer-owned holdings covering an average area of less than 5 ha. In recent years there has been a growth in large operations that vertically integrate seed, nursery, grow-out and processing systems supporting economies of scale. However, most large processors still rely on fresh supplies of catfish from small-scale farming operations to supplement their own production.

of alternative sources of protein and oils for feed; and (v) international markets for Pangasius products, their driving forc-

During the next 20 years, the industry will be exposed

es and price elasticity of demand.

to significant changes to biophysical conditions caused

Further Information Further information about the study including a copy of the report1 can be downloaded from the SFP website at http:// www.sustainablefish.org/. The study findings will also be presented at the Mekong Environmental Symposium 2013 in Ho Chi Minh City, Vietnam, from March 5th - 7th, 2013. http://www.mekong-environmental-symposium-2013.org/

frontend/index.php. 1

Halls, A.S., & M. Johns. (2013). Assessment of the vulnerability of the Mekong Delta Pangasius catfish industry to development and climate change in the lower Mekong basin. Report prepared for the Sustainable Fisheries Partnership, January 2013, 95 pp.

by upstream basin development and also climate change. With funding from the MacArthur Foundation, the Sustainable Fisheries Partnership (SFP) commissioned a recently published study1 to identify potential impacts on the industry arising from this exposure, and the ways in which the industry might effectively manage

or mitigate them to reduce its vulnerability with the support of its stakeholders. The study reviewed more than 75 relevant scientific papers and reports including impact assessments published by the Mekong River Commission (MRC) Secretariat in support of its Basin Development Plan (BDP). This brief aims to raise awareness among the industry’s main stakeholders, including policy makers, producers, food companies, retailers and the research community, of the main findings of the study including priority research.

The

full report is available for download from the SFP website.

What changes will the industry be exposed to?

What impacts and adaptations are likely?

Exposure

Only

achieved by the majority of small-

In locations where water quality is

Herbicide and pesticide concentra-

pected to increase both the wet sea-

tions are also predicted to increase in

Sensitivity & Potential Impacts

son and dry flows in the Delta by an

the order of 80 % across the basin,

Because of the diluting effects of

scale farmers.

Most profit is cap-

significantly affected by pollution,

estimated 2 – 6 % and 11 – 13 %,

and by 15 % and 5 % in the Delta,

increasing dry season flows, dimin-

tured by retailers and processors.

eutrophication and rising ambient

respectively.

respectively.

ished downstream transport of sedi-

Profit is highly sensitive to both mar-

temperature, farmers might autono-

ments and anticipated effective treat-

ket prices, which have fallen almost

mously adapt by increasing feed

Flow and water quality responses

The downstream supply of suspend-

ment of domestic and industrial

every year since 2004, as well as

inputs, drug applications, and stock-

The MRC’s modelling studies indicate

ed sediment to the Delta is expected

waste, nutrient concentrations in the

feed costs that typically account for

ing fry/fingerlings at higher densities

that flows in the Delta during the dry

to diminish by approximately 75 % as

Delta during the next 20 years are

75 - 80 % of variable costs in grow-

to compensate diminishing growth

season will increase by 17 - 20 %.

it accumulates behind dam walls

predicted to remain below “threshold

out operations.

Some farmers are

and survival rates. However, these

Almost no change in flow is predicted

threatening the delivery of bio-limiting

values” and are not expected to

forced to suspend production until

responses would invariably diminish

for the wet season. Average annual

nutrients to both the Delta and off-

impact on Pangasius farming, alt-

farm-gate prices for their products

farm profits and threaten product

During the next 20 years, a further 56

flows will therefore increase only mar-

shore coastal zones, and the struc-

hough localized eutrophication may

reach a viable threshold.

safety.

tributary dams and 11 mainstream

ginally (2 - 6 %).

tural stability of river channels and

occur.

Mekong Delta for aquaculture (and other uses) are heavily influenced by upstream development. Hydropower dams constructed in the upper part of the basin and on tributaries in the Lower Mekong Basin (LMB) are already changing the Mekong’s flow regime.

dams may be constructed in the LMB (Figure 1). These dams, together with a major expansion of irrigated agricul-

“Vul ner abili ty i s a measur e of potenti al i mpact after accounti ng for adapti ve capacity”.

ture and growing domestic and industrial water consumption and waste water discharges have the potential to modify flows and water quality for striped catfish farming in the Delta.

are

Diminishing supplies of wild-caught

Planned adaptation strategies imple-

fish and derivatives for feed in re-

mented under local management

Commercial pellet feed. Photo: Sam Eaton, Marketplace, July 2012.

Other responses

projected growth in herbicide and

sponse to development in the LMB

plans could be more effective, but not

tially supporting the expansion of oper-

The industry will be exposed to other

pesticide use will raise concentra-

and climate change would place

without cost. They might include the

ations and improving water quality by

changes that have the potential to

tions of harmful chemicals in fish

further pressure on farm profit as

installation of treatment facilities at

1,800

dilution, particularly during the dry

impact upon its operations. In partic-

tissue to above detectable and ac-

their costs rise (Figure 2) and ulti-

water intakes; pond aeration; im-

1,600

season.

ular, the supply of wild-caught small,

ceptable thresholds in the foreseea-

mately make their use in farm feeds

proved management and treatment

1,400 1,200

low-value fish, used either whole

ble future. International market confi-

prohibitively expensive, impacting on

of wastewater; and greater regulation

However, water quality will be affected

(‘trash fish’) or after processing into

production and industry-dependent

over the use of drug treatments.

in other ways besides the effects of

dence surrounding the food safety of

meal and oil, to make both farm-

livelihoods.

Measures to deal with raised concen-

dilution. Water temperature is likely to

Pangasius products from the Mekong

made and commercial (pellet) feeds.

Delta has become of paramount

casted ambient change.

A marginal

The industry could be utilizing 1.4

decline in oxygen solubility within pond

million tonnes of wild-caught fish.

waters would be expected in response.

This fish is caught locally from inland

trations of herbicides and pesticide

importance to the industry in recent

MRC studies suggest that the supply

years.

of inland fish in the LMB could de-

Being a facultative air-breather, the

contaminants are yet to be identified.

200

years in response to planned devel-

0

striped catfish would be tolerant of

opment, mainly as a consequence of the barrier effects of dams on fish

sponse to the spatial changes in

water in the Delta have been forecast-

lowered dissolved oxygen concentra-

from other countries in the form of

ed in response to flow change and sea

tions caused by elevated water tem-

migrations.

salinity concentration in the Delta.

fish meal, oil, and feed.

peratures but air-breathing or in-

The development of more saline

creased gill ventilation rates might

Owing to the longevity (typically less

tolerant strains of catfish has been

increase energetic costs and the

than 3 years) of most inland whitefish

advocated but the feasibility and

uptake of aquatic pollutants. Ther-

species used as farm feed, a decline

necessity of this technology requires further investigation.

water (> 5 g/l) in the Mekong River will

Vietnamese coastal and inland fish-

increase upstream towards Vinh Long

eries are likely to be major sources

affecting some areas of Ben Tre, Tra

because of the widespread use of

Vinh and Vinh Long whilst saline intru-

mally-stressed fish might also be

in their supply could occur rapidly in

inland and marine ‘trash fish’ by

sion in the Bassac River will move

more susceptible to infectious dis-

response to dam completion.

farmers and the enormous supply (>

seaward from Can Tho, reducing sa-

1 M t yr-1) of ‘trash fish’ from Vi-

ease. Combined, these effects could

line conditions and potentially improv-

etnam’s marine fishing industry.

ing conditions for Pangasius farms

diminish rates of growth and survival in nursery and grow out operations.

In the longer term, broodstock manBelonging to the migratory whitefish

agement practices that do not rely on

group, Pangasius catfish are them-

the

selves also vulnerable to the barrier

individuals will be necessary. Flood

replenishment

of

wild-caught

located in parts of Tra Vinh, Can Tho,

Inland fish used as feed are typically

The total output from the industry is

effects of dams described above.

protection works to adapt to the com-

Hau Giang, and Soc Tranh. However,

whitefish species whose migrations

unlikely to change significantly in

Future supplies of broodstock from

bined effects of coastal erosion,

Figure 1. Planned development in the LMB during the next 20 years. Source: MRCS.

the overall area of the Delta affected

are threatened by mainstream dam

response to the forecasted changes

the wild (mostly from Cambodia) are

increased storminess and a rising

by salinity will remain virtually un-

development. Diminished delivery of

in salinity distribution in the Delta.

therefore also threatened.

sea level might also be required.

The climate in the Vietnamese Delta is

changed from the present.

nutrient-bearing sediments threatens

Yields are reported invariant to farm

ecosystem production in the Delta

distance from the sea and the striped

The effects of reduced sediment

Adapting

supply, increased storminess and

declines in the supply of trash fish,

rising sea levels are likely to occur

fish meal and oil for feed is likely to

mainly at coastal margins and there-

be more challenging, affecting every

fore are unlikely to affect existing

type of operator, but particularly the

farm operations significantly, at least

small-scale grow-out farmer for which

during the foreseeable (20 year)

the cost of feed is a major determi-

future.

nant of their continued participation in

also changing and expected to change further in the future. Annual average

Nutrient (nitrogen and phosphorus)

and coastal zones and thereby the

loads are likely to increase by 28 % in

catfish is tolerant of salinities of up to

temperature in the LMB is predicted to

supply of estuarine and marine fish

13 ppt without compromising its

increase by approximately 1°C by

the Delta in response to the planned

for feed. Even imported supplies of

2050. Sea level is expected to rise

expansion and intensification of agri-

fish meal are threatened by the ef-

17cm by 2030 accompanied by more

culture in the LMB. Loadings of these

fects of global changes to ocean

frequent and intense typhoons espe-

pollutants from urban sources is pre-

conditions and productivity caused by

cially during El Ninõ years.

dicted to rise by almost 50 % in re-

climate change.

sponse to population growth.

growth or survival, possibly reflecting a marine ancestry. Some redistribution of production and livelihood opportunities among affected areas might occur.

600

has been dismissed as being a prac-

coastal habitats, as well as imported

Intrusion of more saline

800

Relocating farms further upstream

Changes to the distribution of saline

level rise.

Fishmeal, $/mt, real 2005$

1,000

cline by 40 - 60 % in the next 20

ticable adaptation strategy in re-

estuarine

Fishmeal, $/mt, nominal$

400

and

(river/floodplains),

“Adapti ve capaci ty is a mea sur e of the abil i ty to cope wi th or mi ti gate i mpact”.

profits

benefit the aquaculture sector, poten-

rise, possibly by as much as the fore-

“Potenti al i mpact is deter mi ned by exposur e and sensi ti vi ty to changi ng conditions”.

marginal

It remains uncertain whether the

the coastline. These flow increases are expected to

very

$ / tonne

The quality and quantity of water in the

What do we mean by vul ner abil ity?

Adaptive Capacity

Precipitation in the LMB is also ex-

to

the industry.

(potentially

sudden)

Year Figure 2 Global market price for fish meal, 1990 - 2011. Source: World data Bank.