Aquaculture lessons from Georgia
Shrimps are big business in the southern US state of Georgia. This sector primarily relies on wild-caught rather than farmed products – competing against imported farmed shrimp – but the state also has a domestic shrimp aquaculture sector.
Between 400 and 500 licensed shrimp boats do most of the state’s commercial harvesting. The territorial reach of these boats ranges from the coast to eight miles offshore. The shrimp fleet accounts for more than 80% of the state’s total value of caught seafood. That’s between four million and 10 million pounds (around 1,800 to 4,500 metric tons), valued at over $7.5 million (£5.5m).
The state’s commercial shrimping sector has been facing challenges in recent years. In 2000, Georgia issued 523 permits for commercial shrimp trawling. By 2023, this number had decreased to 184 permits, with only 117 issued to Georgia residents. Of those permit holders, only 61 boats reported actively shrimping in the 2023 season.
Competition from imported farm-raised shrimp, particularly from countries like India, Ecuador and Thailand, has put pressure on local shrimpers. The number of shrimp processing plants in coastal Georgia has significantly decreased, with only two remaining as of the most recent shrimp season. Coastal development has led to the loss of infrastructure supporting the shrimping industry, including shipyards, fuel docks and ice docks.
Georgia’s production of freshwater shrimp (Machrobrachium rosenbergii) is becoming a unique niche market which some are finding to be highly profitable. Over the years, farming this alternative crop has had its ups and downs in the US’s south-eastern region. But now farmers are hoping that new advances in research and production practices will make shrimp farming a permanent fixture in Georgia’s agricultural economy.
Production in Georgia varies greatly depending on the producer. Some find the crop a rewarding alternative, while others continue to be frustrated with failure. Today, however, failures can be mostly attributed to moves which are easily prevented, if producers had only done their homework before entering into production. Aquaculture is expensive; it requires attention to detail; mistakes made early are often impossible to overcome in a production season.
Georgia’s farm-raised prawns are stocked at rates of 16,000 to 24,000 per acre. They are obtained from a handful of hatchery/nursery facilities located in the state of Texas.
Freshwater shrimp marketing is undertaken at the farm level in Georgia. Juvenile prawns are typically stocked in June and harvested again in October.
Freshwater shrimp are unique in the market in that their size dominates. It’s difficult to impossible to get large shrimp at times, and (if one can find them) they’ve got a hefty price tag. One important part of freshwater shrimp’s mystique is that they are home-grown in ponds. These ponds are free of pollutants and pesticides. Georgia shrimp farmers hope to relieve pressure from coastal resources by providing shrimp for sale with less bycatch or sea turtles to worry about.
Freshwater shrimp are also marketed on the organic or environmentally friendly approach to add to the mystique of the product. Autumn harvests also coincide with the time when leaves change and folks are out driving looking for things to do. Shrimp farmers are hoping they’ll choose to go home with a few shrimp on ice.
Freshwater shrimp production
Production in Georgia ponds began with the least complicated route of production, stocking of juvenile prawns into ponds. These prawns were stocked at rates of 16,000 per acre, and were obtained from hatchery/nursery facilities in Texas. Stocking densities vary from 16,000 to 24,000 depending on the producer. Lower stocking rates, proper aeration and feeding should result in a larger size shrimp. At one time, some producers got greedy – and doubled their stocking rates. They ended up with a pond full of “popcorn shrimp” (small, bite-sized shrimp) which are impossible to sell at the right price.
Pond design is yet another facet of prawn production that has to be closely evaluated if producers are to be successful. Pond design for prawns is similar to fingerling catfish production. Typically these are small ponds that are easily filled and drained.
Another unique alternative – which some producers in Mississippi and Kentucky have begun using – is a harvest trap on the other side of the pond dam. The basic design uses a larger pipe, approximately a 12” pipe for a half-acre pond. The standpipe has a gate valve at the base of the catch basin. The larger pipe drains the pond more quickly causing the shrimp to pass through the pipe into a basket on the back side. This basket can be easily lifted with a tractor or manually changed by swapping baskets as they fill.
As experience has grown, producers have sought to lower their production costs and also generate revenue by implementing the nursery phase of production. Nursery facilities are indoor production systems used to grow out post-larval prawns to juvenile sizes.
Handling during transport and stocking can be the most critical step in the culture of shrimp in ponds. Stress and mortality at this time could result in total failure of the entire crop for the growing season.
Juvenile shrimp are often transported in large plastic bags filled with water, prawns, and oxygen. The bags are packed in Styrofoam coolers to maintain temperature and to keep the shrimp in the dark until the bags reach the pond. Transport is a critical time for juvenile shrimp, and it’s the producer’s job to ensure safe passage. On the nursery side it often helps to have a day set aside each week to sell juveniles, that way one holds them off feed for 24 hours prior to sale. This helps clean them out and prevent toxic ammonia from building up in the bags.
Overall, a reduction in the number of shrimp lost in handling and stocking should result in higher yields and thus more profits for the producer. Pond preparation prior to stocking is often a neglected part of typical management that needs more attention. Pond preparation practices include: liming, fertilising, pond levee repair and treating for insects. Having things ready for shrimp before they arrive makes a real difference.
Prawn ponds are managed for phytoplankton and zooplankton production prior to stocking. This zooplankton serves as the initial food source for juvenile prawns. To get a good zooplankton population, farmers need to fertilise the pond every week. A good source of organic fertiliser is cottonseed meal. It’s relatively inexpensive, and it tends to break down more slowly, posing less threat to water quality than other sources of organic fertilisers. Inorganic fish pond fertiliser can also be used at label rates.
Georgia freshwater shrimp farmers may venture into the area of wholesale or retail sale of shrimp off-farm in future. The Georgia Department of Agriculture regulates wholesale and retail sales of food products according to the “Georgia Food Protection Act” (Section 26 - 2 - 25). This section states: “It shall be unlawful for any person to operate a food sales establishment without having first obtained a license from the Commissioner”.
In many ways, freshwater prawns are similar to the shrimp which one normally buys. But they also have unique attributes. Almost all shrimp seen in grocery stores are, or have been, frozen. Freshwater prawn tails contain less than 0.5% fat. What little fat there is, is largely highly unsaturated (“heart healthy”) fat.
Freshwater prawns contain less cholesterol than saltwater shrimp. The texture of freshwater prawns is in some ways more similar to lobster, and preparation and recipes are similar for both.
Markets for shrimp worldwide appear strong. With the increasing pressure put on coastal fisheries and increasing demand for seafood products, it’s obvious aquaculture will become a growing player in the market. Consumers do want to know where their food comes from; who grew it, what it was fed, etc. The farmers argue: wouldn’t it be better to support home-grown products that we can learn to trust and rely on?
Freshwater shrimp farmers in Georgia have overcome some of the major obstacles before them in recent years and are poised for their next challenge – large scale production and the potential for off-farm sale and processing. Freshwater shrimp and aquaculture in general definitely aren’t for everyone. It’s a unique commodity that a number of producers in Georgia are really enjoying. For others it’s something that can become very costly – and losses have often occurred.
US shrimp aquaculture production is a complex puzzle. Product differentiation is vital, since the demand is higher for fresher shrimp, which are more environmentally friendly, and which are antibiotic-free. Smart marketing is, therefore, seen to be extremely important. One case in point is the legal case brought earlier this year, in which Aqua Star Corporation has been sued for false advertising of “responsible” shrimp sourcing. The case is built, in part, around the practices of Nekkanti Sea Foods Corp, a known Aqua Star supplier.
The complaint alleges that Aqua Star’s Seafood Forever™ social and environmental responsibility claims are false and misleading because the company’s Asian shrimp suppliers have been reported to engage in forced labour, debt bondage, hazardous working conditions, and severe environmental damage, including groundwater contamination and destruction of vital coastal ecosystems.
Biosecurity risks and competition
US law prohibits the use of US funds to support surplus production of commodities which harm US producers. However, overseas shrimp aquaculture projects are regularly funded to the detriment of domestic shrimpers – especially through multilateral development institutions, such as the World Bank, which are using US taxpayer funds. In order to track the actions of these institutions, one active US trade-association – the Southern Shrimp Alliance – makes publicly available a database of all US Treasury Department votes on multilateral development projects. This database helps users verify compliance with US law and more readily identify shifting trends in shrimp financing to new countries, regions, or methods. SSA published a research report: “A Crisis of Our Own Making: US-Backed Development Funding of Foreign Shrimp Aquaculture Is Substantially Injuring the American Shrimp Industry”.
The importation of shrimp from Asia and Latin America does pose significant biosecurity concerns, on multiple levels.
The primary concern is pathogen introduction via imported product. Diseases are believed to be transferred between regions through the importation of hatchery broodstock, post larvae, and shrimp products. Once new pathogens are imported to an area, infection of wild stock appears inevitable, eliminating future possibilities of using uncontaminated wild stock to culture.
A second concern is specific viral threats. In Asia, mortalities of cultured shrimp due to white spot syndrome virus (WSSV) and yellow head virus (YHV) have resulted in significant economic losses, and taura syndrome virus (TSV) is now spreading throughout the region. In the Western Hemisphere, both WSSV and TSV have caused catastrophic losses on shrimp farms – in Ecuador alone, WSSV was responsible for an estimated 53% decline in shrimp production from 1998 to 2000, costing over $516 million (£380m) in lost export revenue.
A third concern is the bait pathway. A particularly serious US-specific risk is the use of imported raw shrimp as fishing bait. Uncooked prawns should be marked “for human consumption only” and “not to be used as bait or feed for aquatic animals,” since use of uncooked imported prawn as bait was identified as a major risk factor for pathogen transfer.
A fourth concern is the immunological vulnerability of shrimp. Penaeid shrimps do not have an adaptive immune system that can facilitate natural protection against various pathogens, and standard vaccination against viruses is not possible. This makes it challenging to develop vaccines, and increases the risk of mortality within a few days of infection.
Though millions of tonnes of frozen or processed shrimp have been traded internationally over the last two decades despite the prevalence of viral diseases in producing areas in Asia and the Americas, there is no evidence of diseases having been transmitted through shrimp imported for human consumption. However, the risk from live animals, bait use, and processing effluent reaching natural waterways remains real and ongoing.
Are US farmed shrimp price-competitive?
US farmed shrimp are definitely located at the premium end of the consumer marketplace, and they are not price-competitive with Asian imports on volume. The economics are stark.
Firstly, there is the scale disadvantage. The US shrimp market faces increasing competition from imported shrimp, especially from India, Ecuador and Vietnam, which present cheaper options with more affordable farming methods, putting pressure on local producers who have greater operational expenses and regulatory requirements.
Indonesia has one of the lowest costs of production at USD $3.00–3.50 (£2.21-£2.58)/kg, with some well-managed farms achieving USD $2.50–2.90 (£1.84-£2.14)/kg. US indoor RAS facilities cannot approach these figures.
Secondly, US products are both fresh and large, not just fresh. Size and freshness are a significant part of the US domestic premium. Wild-caught shrimp – such as Gulf or domestic varieties – often carry a price premium due to limited harvests, distinct flavour profiles, and sustainability considerations. As the main article here reinforces: freshwater prawns’ size dominates their appeal, as large shrimp are difficult to find in the market and command a premium price.
Thirdly, the fraud problem reveals the gap. If you’re using an imported farm-raised shrimp, the cost is typically lower, so there’s an economic motive to potentially replace that premium product with less premium seafood items. A group backed by the Southern Shrimp Alliance found that in Charleston, South Carolina, 90% of shrimp served in tourist-area restaurants wasn’t the expensive domestic product on the menus – it was shipped in from Asia. This tells you everything about the price differential and market positioning: US shrimp is priced as premium, but cheap imports are constantly substituted for it.
Fourthly, tariffs are now helping. The US Department of Commerce has imposed anti-dumping and countervailing duties on shrimp imports from Ecuador, India, Indonesia and Vietnam, which have significantly increased the cost of sourcing imported shrimp and made domestic recirculating aquaculture system (RAS) ventures more viable, prioritising freshness, sustainability and local branding.
Homegrown Shrimp USA: why did they stop production in Florida, and pivot to broodstock?
Homegrown Shrimp USA is a Florida operation owned by the Thai giant Charoen Pokphand Foods (CP Foods), led by veteran aquaculturist Robins McIntosh, and located in Indiantown, Martin County, Florida.
The pivot was confirmed in early 2025. CP Foods announced its withdrawal from the US retail market for Homegrown Shrimp, its 160 metric ton (MT) indoor farm in Florida. The facility will in future focus on genetic improvement and the selling of broodstock. The reason given for this shift in strategy is the unwillingness of consumers to pay the prices needed to make a profit given current operating costs, which resulted in unsold product due to competition from imports.
Why exactly did the economics fail? Firstly, scale was simply too small; 160 MT is not a sufficient scale to achieve farming costs competitive with traditional shrimp fisheries, confirming the view that reaching parity in production costs is essential for commercial viability.
Secondly, there were high construction and operating costs. Indoor production required a bigger budget than using outdoor ponds or tanks, and although Homegrown Shrimp had the backing of one of the world’s largest food businesses, the high costs of construction proved to be challenging in developing a project with sustainable economics. To maintain water at 30–31°C year-round (necessary for continuous production), the facility had to be fully insulated and temperature-controlled – a major ongoing energy cost.
Thirdly, there was the seasonality trap. CP Foods realised that even in South Florida there would only be 7–8 months of growing season if outdoor ponds were used, which is why they went entirely indoors – but “we wanted our shrimp to be available any time, all the time,” McIntosh said. Year-round indoor production is expensive but non-negotiable for securing retail contracts.
Finally, the market price had a ceiling. McIntosh said the farm would achieve revenue of $2.85 million (£2.1m) per year if the shrimp sold at a minimum rate of $15 (£11) per kilogram. That’s roughly $6.80 (£5)/lb wholesale – far above what supermarkets were willing to pay given abundant cheap Asian imports.
Why pivot to broodstock specifically? This turns out to be strategically astute. CP Florida Broodstock is grown in a multiplication facility at the Homegrown USA site in Indiantown. There are no established shrimp pathogens in the state of Florida; CP Florida broodstock exports are under the regulatory control of the USDA; and the facility is within two hours of three international hubs –Miami, Tampa, and Orlando – enabling efficient delivery of broodstock to target countries including India, Indonesia, Korea, and all of South and Central America.
Florida’s pathogen-free status makes it uniquely valuable for producing disease-free SPF broodstock for export to disease-prone Asian markets – a far more profitable niche than trying to sell fresh shrimp to price-sensitive US consumers.
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