Sustainable Shrimp Farming: Balancing Economic Gains with Environmental Health

The Hidden Costs of Shrimp: Are We Paying Too Much for Our Seafood?

Elliot Brynn in Climate & Environment December 2025 • 4 min read.

"Unveiling the Environmental Price Tag of Shrimp Farming and What We Can Do About It."

Shrimp, a globally beloved seafood, has become a staple in many diets. From succulent shrimp scampi to zesty shrimp tacos, its versatility is undeniable. But behind the appealing facade lies a concerning truth: traditional shrimp farming carries a significant environmental price tag. As consumers, it's crucial to understand these hidden costs and explore ways to enjoy our favorite seafood more sustainably.

For decades, shrimp farming has been a booming industry, particularly in countries like Bangladesh, contributing significantly to export earnings and providing employment opportunities. However, this economic growth often comes at the expense of fragile coastal ecosystems. Wetlands and agricultural lands are converted into shrimp farms, leading to mangrove destruction, saltwater intrusion, and decreased agricultural productivity.

This article delves into the environmental costs associated with shrimp farming, drawing insights from a detailed study conducted in the coastal areas of Chittagong and Cox's Bazar in Bangladesh. We'll explore the specific impacts on mangrove forests, agricultural lands, and local communities, and discuss potential solutions for promoting a more sustainable and equitable aquaculture industry.

What's the Real Cost of That Shrimp on Your Plate?

Sustainable Shrimp Farming: Balancing Economic Gains with Environmental Health

The study, "Estimating the Environmental Cost of Shrimp Farming in Coastal Areas of Chittagong and Cox's Bazar in Bangladesh," highlights the often-overlooked external environmental costs of shrimp farming. These costs aren't reflected in the price farmers receive, leading to unsustainable practices. The research employed the contingent valuation method to estimate these hidden expenses, revealing a calculated environmental cost of $13.66 per acre per year. While this figure might seem small, its cumulative impact on the environment and local economies is substantial.

One of the most significant environmental consequences of shrimp farming is the destruction of mangrove forests. These coastal ecosystems provide numerous invaluable services:

Coastal Protection: Mangroves act as natural barriers, protecting coastlines from erosion, storm surges, and tsunamis.
Nursery Grounds: They serve as vital breeding and nursery habitats for various fish, crab, and shrimp species, supporting biodiversity and local fisheries.
Water Filtration: Mangroves filter pollutants and excess nutrients from the water, maintaining water quality and preventing algal blooms.
Carbon Sequestration: They are highly efficient at storing carbon, helping to mitigate climate change.

The conversion of mangrove forests into shrimp farms deprives coastal communities of these essential ecosystem services, increasing their vulnerability to natural disasters and disrupting their livelihoods. Furthermore, the study notes that aggressive shrimp farming has led to increased soil salinity, reduced agricultural production, and decreased earnings for local farmers.

Toward a Sustainable Shrimp Industry: Recommendations for Change

While shrimp farming presents significant environmental challenges, the study emphasizes that it can be transformed into a more sustainable and equitable industry. The authors propose several key recommendations: Implementing well-defined property rights to reduce negative externalities, Introducing permit or licensing systems to control shrimp farming and protect marine species, Levying environmental taxes on shrimp production to internalize environmental costs, Adopting Best Management Practices (BMPs) to increase efficiency, improve food safety, and minimize environmental impact.

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

This article is based on research published under:

DOI-LINK: https://doi.org/10.48550/arXiv.2109.05416,

Title: Estimating The Environmental Cost Of Shrimp Farming In Coastal Areas Of Chittagong And Coxs Bazaar In Bangladesh

Subject: econ.gn q-fin.ec

Authors: Mohammad Nur Nobi, A N M Moinul Islam

Published: 11-09-2021

Everything You Need To Know

What are the primary hidden environmental costs associated with shrimp farming?

The primary hidden environmental costs of shrimp farming include the destruction of mangrove forests, saltwater intrusion, and decreased agricultural productivity. These costs are not reflected in the price farmers receive, leading to unsustainable practices. The study conducted in Chittagong and Cox's Bazar, Bangladesh, revealed an environmental cost of $13.66 per acre per year, highlighting the significant cumulative impact of these practices on the environment and local economies.

Why is the destruction of mangrove forests a significant concern related to shrimp farming?

The destruction of mangrove forests is a major environmental concern because these ecosystems provide essential services. Mangroves act as natural barriers against erosion, storm surges, and tsunamis, protecting coastlines. They serve as crucial breeding and nursery habitats for various species, supporting biodiversity and local fisheries. They also filter pollutants, maintain water quality, and store carbon, mitigating climate change. Shrimp farming's conversion of mangroves deprives coastal communities of these services, increasing their vulnerability to natural disasters and disrupting livelihoods.

How does shrimp farming impact agricultural lands and local communities?

Aggressive shrimp farming leads to increased soil salinity, which reduces agricultural production. This decrease in productivity directly affects the earnings of local farmers. Additionally, the conversion of agricultural lands and wetlands into shrimp farms reduces the availability of land for traditional farming, further impacting local communities' livelihoods and food security.

What specific recommendations are proposed to make the shrimp industry more sustainable and equitable?

To transform the shrimp industry, the study recommends several key actions. These include implementing well-defined property rights to reduce negative externalities, introducing permit or licensing systems to control shrimp farming and protect marine species, and levying environmental taxes on shrimp production to internalize environmental costs. Furthermore, adopting Best Management Practices (BMPs) is crucial to increase efficiency, improve food safety, and minimize environmental impact.

What are the benefits of mangrove forests that are lost due to shrimp farming practices?

Mangrove forests provide invaluable services essential for coastal protection and ecological balance. They act as natural barriers protecting coastlines from erosion, storm surges, and tsunamis. They are vital breeding and nursery habitats for various fish and other marine species, supporting biodiversity and local fisheries. Mangroves filter pollutants, maintaining water quality and preventing algal blooms, and they are highly efficient at storing carbon, which helps mitigate climate change. The loss of these forests due to the expansion of shrimp farms deprives coastal communities of all these essential ecosystem services, increasing their vulnerability to natural disasters and disrupting their livelihoods.