Marketing margins of aquaculture shrimp production in Kedah

Abstract

Shrimp aquaculture has great potential for providing income and employment opportunities to farmers. Shrimp production can also contribute to economic growth given its high value and demand in Malaysia. However, it is often said that players in the marketing channel extract high margins for themselves. This study intends to verify this claim by examining a case study based on white leg shrimp (Litopenaeus vannamei) aquaculture in Kedah. The data for this study was obtained from a detailed study involving a shrimp retailer in Kedah. The marketing margins were calculated from the interviews of the farmer and the retailer. The results showed that the marketing channel was quite efficient because there was no large gap in the prices between the marketing channels. The difference between retail price and farm price is only RM7 per kilogram for the white shrimp which accounts for 43.75 percent of total farm price and represents the cost of bringing shrimps from the farm to the retail market.