The economics of shrimp disease

Shrimp is not only one of the world's most valuable aquaculture species, but also a species that encounter high economic losses due to diseases. Diseases are sufficiently important to influence global supply and prices for longer periods. Profitability is the driving force behind shrimp farming and high profits associated with the absence of disease largely determines where shrimp production does take place; i.e. prevalence of disease leads to geographic relocation. In this paper, a basic economic model for the impact of the disease on a shrimp farm is provided and a Monte Carlo simulation is provided to illustrate the impact of disease on economic risk. Improved technologies, knowledge, and governance are important elements utilized in the mitigation of diseases in various shrimp producing countries. Economic aspects such as profitability in the absence and presence of diseases and cost of treatment determines the global production of shrimp along with shaping technologies and production systems.

Automated summary

This paper discusses the economic impact of diseases on shrimp farming, where profitability and disease greatly influence the location of shrimp production. Disease management requires the use of technology, knowledge, and governance.