Annual Meeting for Global Gen China shrimp breeding operations
Global Gen SPF vannamei breeders by PT Bibit Unggul, have been marketed in China since 2009 and are currently seeing great success in new markets in northern China. The local agent for distribution, Global Gen China (Shenzhen Global Lianzhong Biotechnology Co., Ltd) is making plans for a market push of Global Gen breeders in 2017. For this reason the Chairman of Global Gen China or GGC, Mr Fang Jibin, made a visit to Medan from January 12th to 20th, 2017, to discuss strategies for the expansion and also visit the integrated operations of the Global Group. He was hosted by Mr Octo Rachnalim (Director) and Mr Ng Chee Kiat (Head of International Marketing) for the visit which included visits to the group’s feed milling, shrimp hatchery and farming operations in Medan.
Shrimp Farming in China
China is the world’s largest producer of farmed shrimp with 2016 estimates of 700,000 mt being produced and consumed mainly in the domestic market. GGC has been operating in China since 2009 and has helped shape the shrimp farming industry in
China. The imports of shrimp breeders are controlled by the Chinese government and only 160,000 pairs are allowed per year, with Global Gen (PT Bibit Unggul) being one of the few breeders companied authorized to supply SPF breeders there. Global Gen Hy-S line of SPF breeders has been marketed into China since 2009 while the Hy-G line was introduced only in 2016. Currently GGC operates more than 20 hatcheries all over China and markets the post larvae to farmers. The focus of the visit and discussions was to identify the various market niches in the huge Chinese market and look at the possibility of establishing a BMC in China. A comprehensive review of GG HyS and Hy-G family lines in the market compared to competition such as CP, SIS and Kona Bay was also discussed.
The shrimp farming industry can broadly be categorized into 3 types based on the pond size and stocking density as shown in the Table below.
Farming systems for shrimp in China (2016)
Low density farming
Most common is the low density farming where stocking is low at less than 30 per square meter and ponds tend to be very large. Most of these ponds stock using local breeders and even at low densities the survival is very low. These production systems are found in northern and colder regions of China and only 1 stocking is done per year in the summer. The expectations from this production system are however also low and farmers expect not more than 100 kgs per mu (667 m2). Most of the farmers use low cost PL supplied by local breeders with no SPF status.
High density farming
One of the most important markets in China for GG breeders are the intensive pond culture systems with characteristics of high stocking density and small sized ponds. Ponds being stocked with GGC hatchery produced post larvae in China In this system, the ponds are usually filled with disinfected water and PLs stocked at a density of 300 PLs/m2 at the onset. No water is added for the first 30 days and the water
temperature ranges from 24oC to 30oC. After 30 days new water is added into the ponds as the culture progresses for 85 days where shrimp achieve sizes of 70 pcs to 80 pcs/kg. One of the most challenging tasks for farmers is to get good survival in view of the fluctuating water condition and also because the water added after stocking is not treated which is a high bio-security risk. This market segment comprises about 30% of the total shrimp production in China. Global Gen Hy-S line has been the main breeding line marketed into China from 2009. It maintained the characteristics of high stress resistance especially in low-temperature farming conditions. However it takes about 10 days longer than Hy-G, in terms of achieving market sizes but the overall success rate was higher;
In recent years, the farms in China have started to move indoors as management of the environment created more challenges. These indoor tanks are very similar to hatchery buildings with tanks usually having an area of 30 m2 with a depth of 1.2 to 1.5 m. These farms are making it possible for year round production and in the colder regions in the north of China where farming was earlier not practical. Stocking densities in this system is very high with as much as 20,000 PL 5 animals stocked per tank.
Indoor shrimp farm in northern China
Global Gen Hy-G line was introduced to take advantage of this production system where the bio-security is good allowing the shrimp to grow at its maximum potential. The production from tanks can be up to 250 kgs per cycle (83 mt/ha) and this system is particularly suited for the live markets where the prices of shrimp is high typically during the winter season, rising to as much as RMB 120/kg (USD 17.50/kg) during the lunar new year. In the low season, these facilities sometimes also double as hatchery tanks. The Hy-G line is doing very well in this segment and is currently the market leader.
Global Gen Expansion in China
Fang Jibin has been with Global Gen China since 2009 and currently operates more than 20 hatcheries all over the country. In 2016 GGC imported more than 20,000 pairs of breeders for its own hatchery operations. In Shenzhen alone, GGC has 11 hatcheries of various sizes in operation with the largest having a capacity of 200 million PLS per cycle.
Global Gen China Hatcheries
The expansion of shrimp farming especially in the indoor farming segment provides an
excellent opportunity for the Hy-G line to monopolize the market. In order to capitalize
on the situation, in view of the government limit on broodstock imports, GGC will embark on developing a BMC in China, beginning with north China where the indoor farming is most popular. The goal is to provide customers with more product satisfaction, through local production of GG SPF breeders. The BMC is scheduled for operation in July 2017 and PL10 of both the Hy-S and also the new Hy-G family lines will be shipped in time for China produced GG breeders to be available for hatcheries to use in March 2018.