10 Questions to Ask Before You Expand Fish or Shrimp Production

Growth is the natural goal of any successful aquaculture enterprise. However, the decision to expand fish or shrimp production should not be based solely on intuition or a single profitable harvest. Increasing the flooded area or intensifying cultivation brings new management, sanitary, and financial challenges.

To assist in this decisive moment, we have listed ten technical and managerial questions that must be answered before any investment in infrastructure is made.

1. Has economic viability been calculated precisely?

Increased production does not necessarily mean increased profit. It is crucial to analyze whether the investment in new ponds or aerators will have an attractive Return on Investment (ROI). Fixed costs may be diluted, but variable costs will rise. A detailed analysis of the projected cash flow is indispensable to avoid financial bottlenecks in the middle of the cycle.

2. Will the market absorb the new volume?

Before you expand fish or shrimp production, you must ensure there is a sales channel. Does the current demand in your region support more tons of biomass? Are there signed contracts with processing plants or buyers that justify the increase? Diversification of sales channels should be considered in advance.

3. Has the carrying capacity of the environment been respected?

Increasing stocking density without expanding the physical area requires technology. Can the receiving water body and the supply source support a higher load of nutrients and organic matter? Studies, such as those proposed by Boyd et al., indicate that exceeding carrying capacity is the fastest route to disease and poor feed conversion ratios.

4. How is sanitary control and biosecurity?

With higher density or more ponds, the risk of disease propagation increases exponentially. Are biosecurity protocols implemented and strictly followed? Expansion requires a vaccination plan (in the case of fish) and even stricter pathogen monitoring.

5. Is the energy and aeration infrastructure sufficient?

Productive intensification demands a greater supply of dissolved oxygen. Does the farm’s electrical grid support the installation of new aerators? Are emergency generators capable of maintaining the new load in case of power failures? A lack of oxygen is fatal and can decimate the investment in hours.

6. Is the workforce qualified for the new scale?

Managing 10 hectares is different from managing 50. Can the current team maintain the routine of biometrics, feeding, and parameter monitoring with the same efficiency? Technical training for the team or hiring a resident fisheries engineer may be necessary when you expand fish or shrimp production.

7. Is environmental licensing up to date?

Physical expansion or increased production intensity often requires updating environmental licenses and water usage rights with regulatory agencies. Operating above permitted limits can result in severe fines and embargoes, compromising the entire operation.

8. Is there working capital to support the full cycle?

Many producers invest all their capital in building ponds and forget about operational costs (feed, energy, inputs) until the harvest. Financial planning must include the working capital necessary to feed the additional biomass until the moment of sale.

9. Is the supply of inputs and post-larvae/fingerlings reliable?

Supply chain security is vital. Do your current suppliers of feed and young forms (post-larvae or fingerlings) have the capacity to deliver larger volumes while maintaining quality and genetics? Dependence on a single supplier can be a strategic risk.

10. Do you use specialized management software?

With increased scale, control via spreadsheets or field notebooks becomes obsolete and dangerous. How will data be analyzed in real-time?

Using a management system like Despesca is crucial at this stage. The software allows you to centralize data on feed conversion, costs per pond, growth curves, and water quality parameters. When deciding to expand fish or shrimp production, decision-making must be fast and based on accurate historical data. Despesca automates this, allowing the producer to focus on strategy rather than just manual operation.