Wal-Mart demand drives “greener” shrimp farms
Wal-Mart demand drives “greener” shrimp farms
mongabay.com
July 24, 2007
Wal-Mart’s demand for sustainably-produced products is driving “greener” production of shrimp in Thailand, reports the Wall Street Journal (WSJ).
Environmentalists have long complained about damages wrought by the shrimp-farming industry. Pollution from shrimp farm effuse and clearing of biologically-important mangrove forests are generally cited as top concerns.
Now mandating that its suppliers meet certain sustainability standards, Wal-Mart’s is pushing its main provider of farmed shrimp, Rubicon Resources LLC, for changes in how shrimp are cultivated in its Thai farms. The overhaul could influence shrimp production in other parts of Asia.
According to the WSJ, Rubicon is “increasing the testing and documentation of what is in its ponds, planting mangrove elsewhere to make up for the trees destroyed by its farms and standardizing treatment of the water discharged from its ponds.” The firm will also be required to eliminate the use of antibiotics and pay workers fair wages.
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However, the regulations may prove burdensome to smaller operators, who cannot afford to pay for inspection fees mandated by the alliance. Wal-Mart will not reimburse operators for the expenses nor pay a premium for the shrimp, reports the article.
“Wal-Mart views those costs as the industry’s responsibility,” write Kris Hudson and Wilawan Watcharasakwet. Because Wal-Mart is the dominant player in the industry, accounting for 3.4 percent of the 590,299 metric tons of shrimp imported into the U.S. last year, Wal-Mart can pretty much do as it pleases.
Nevertheless, Rubicon sees Wal-Mart’s whims as an opportunity. The firm has spent more than $2 million acquiring Thai farms and improving operations to meet standards set by the Global Aquaculture Alliance, an industry group. The alliances, which counts Darden Restaurants Inc. (owner of Red Lobster) as a member, will soon unveil similar guidelines for the production of tilapia, catfish, and salmon.
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