World Applied Sciences Journal 4 (5): 724-729, 2008 ISSN 1818-4952 © IDOSI Publications, 2008 Corresponding Author: Abdoulkarim Esmaeili, Department of Agricultural Economics, College of Agriculture, Shiraz University, Shiraz, Iran 724 Measuring Competitiveness of Shrimp Farming in Southern Iran: Using Pam Approach Abdoulkarim Esmaeili Department of Agricultural Economics, College of Agriculture, Shiraz University, Shiraz, Iran Abstract: Shrimp farming in Iran is one of the fast growing segments of the economy. In 1994, around 1% of Iranian shrimp production was farmed and by 2004 the share of shrimp farming increased to 60%. In spite of the fact that shrimp culture had relatively rapid growth in last decade, due to increase in production cost and decrease in international price, the profit of shrimp production has decreased in recent years. The purpose of this research is to analyze the competitiveness of Iranian shrimp farming. The policy analysis matrix (PAM) method was used to investigate divergence between market and social profit in the Iranian shrimp industry. The results indicated that social prices for production cost were higher than market prices for fuel, electricity, fertilizer and less than market price for feed. It indicates that in spite of government subsidies to shrimp production inputs, the shrimp producers categorized as tax payers for total input cost. In addition, it was concluded that shrimp social price and production profit were less than market prices. Key words: Shrimp farming Iran PAM Social price Protection Competitiveness INTRODUCTION suitable for shrimp culture. Shrimp farm units are usually Shrimp farming is rapidly growing in the world. Asia is affected by policies such as input subsidies, exchange raises approximately 70% of cultured shrimp. Thailand, rate devaluation and export subsidies. Indonesia, Vietnam, India, Bangladesh and Philippines are Shrimp farming in Iran is characterized by high major producers [1]. In Iran, farming of Indian white water salinity pond and temperatures. Very high salinity shrimp Penaeus indicus, the major shrimp species (up to 60 ppt) can be observed during the first month of cultured is the fastest growing segment of economy, rearing when pond water exchange is low. Pond water increasing at a rate of 68% per year during last eight temperatures are fluctuating between 30 and 35°C during years. In 1994, approximately 1% of Iranian shrimp the hottest months (from July to mid September) and production was farmed; by 2004 this share had increased in certain areas like Hormuzgan province pond water to 60%. Although, due to some white spot infection this temperatures can reach 40°C during several days. share had decreased to 28% in 2005. The aims of Iranian Average of stocking density and yield is 23 PL's/m shrimp farming were compensated of the decline in and 2.1 MT/ha. shrimp fishery, earning foreign exchange, enhancing Only one crop per year is achieved in Provinces employment opportunities and income for poor coastal located along the Persian Gulf and Oman Sea due to low communities. Iranian shrimp farming areas had been temperatures encountered between October and April. concentrated in the northern Persian Gulf and Oman However, two crops per year can be achieved in Sea. There are about 4300 ha of shrimp ponds in Iran Balochestan where shrimp farming conditions are better and shrimp farms are located in Khuzestan, Busher, in terms of pond water salinity and temperature most of Hormozgan and Balochestan provinces. the year during January and February. Iranian shrimp A few thousand hectares of land have been allocated industry is depending on wild Indian white shrimp for the establishment of shrimp ponds and several Penaeus indicus fore grow-out larvae [2]. hatcheries have been built to supply the post larvae from In Iran, shrimps are cultured in a semi-intensive way. spawners caught from the north Oman Sea. In addition, The post-larvae are transfered from hatcheries to the Iran has 1800 Km of coastlines in the south, which are grow-out ponds from which they are harvested after five of 14 ha and composed of 1 ha. ponds. Shrimp production 2