Resilience

The gift of adversity.

Robin Pearl
President
American Penaeid Inc.
HATCH India 2023
 The mood is dim
The money is tight
The situation is dire
The challenges are great
The level of frustration is high
The future is very much in doubt

NEVER BEFORE
HAVE SHRIMP FARMERS FACED SUCH AN UPHILL BATTLE.
 The mood is dim
The money is tight
The situation is dire
The challenges are great
The level of frustration is high
The future is very much in doubt

OR… HAS THIS HAPPENED BEFORE?

Once upon a time,
There was a shrimp farming country…
• That was a world leader in shrimp production
• But it had big macro issues:
• It faced a very deep economic crisis.
• Crime and theft were a major issue.
• Politics made the country unstable – there was a coup d’etat
• Its had HUGE inflation – 96%!
This country’s shrimp industry was a real success
1,50,000

50,000
21 Years of increasing
shrimp production

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44

-50,000
 Then the shrimp industry was almost wiped out
1,50,000

Devastating Diseases
caused a

65%
DROP in production.
50,000
Sets the industry back
about 13 years

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44

-50,000
On top of the Macro issues, Diseases made a
1,50,000

tough situation even more difficult

The whole shrimp

industry had huge losses.
Many went under….

50,000 This was a very tough

time in this industry.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44

-50,000
1,50,000 But some shrimp farmers never gave up…

50,000

The RESILIENT

7
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

took

-50,000
years to recover
1,50,000 How did they solve it?

They developed
a better animal.
• Selected for Survival
• Using DNA based
paternity selection to
50,000
minimize inbreeding

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

-50,000
9,00,000

8,00,000
They
7,00,000
Persevered
6,00,000
And re-invented
5,00,000 their whole
industry
4,00,000

3,00,000

2,00,000

1,00,000

0
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 -
1,00,000
2,00,000
3,00,000
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6,00,000
7,00,000
8,00,000
9,00,000

1979
1980
1981
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1983
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Because of their

they solved their

1990
1991
problems and became

1992
ADVERSITY,

STABLE
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 -
2,00,000
3,00,000
4,00,000
5,00,000
6,00,000
7,00,000
8,00,000
9,00,000

1,00,000
1979
1980
1981
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they ushered in a

1999
of their ADVERSITY,

NEW Era of

2000
PROSPERITY
BECAUSE

Production Tons 2001

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9,00,000

8,00,000

7,00,000
With STABILITY
they were able to focus
on creating becoming the
6,00,000

most efficient
5,00,000
shrimp producer in the
world…
4,00,000

3,00,000

2,00,000

1,00,000

-
1994

2008

2013
1979
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Production Tons
9,00,000

8,00,000

7,00,000
Today Ecuador is one of
6,00,000
the leading, lowest cost
5,00,000

and highest quality

4,00,000

3,00,000
shrimp - farming
2,00,000 countries in the world!
1,00,000

-
1994

2008

2013
1979
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1981
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Production Tons
 -
2,00,000
3,00,000
4,00,000
5,00,000
6,00,000
7,00,000
8,00,000
9,00,000

1,00,000
1979
1980
1981
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1983
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1989
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Production Tons 2001

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why wouldn’t India be

2015
able to do this as well?

2016
If Ecuador can do it then

2017
2018
2019
2020
2021
2022
9,00,000

8,00,000
Ecuador’s KEY Secret?

BETTER GENETICS!
7,00,000

6,00,000

5,00,000 Use DNA paternity identification to:

1. Select for survival from actual production
4,00,000
environments
3,00,000 2. Use the DNA to maximize genetic distance on
new crosses
2,00,000
3. Repeat
1,00,000

-
1994

2008

2013
1979
1980
1981
1982
1983
1984
1985
1986
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1988
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Production Tons
API supplies the most WIDELY USED SPF/SPR genetic lines in the world!
DEVELOPED IN: Ecuador/USA China/USA Thailand/Saudi Arabia Thailand

API
By HomeGrown USA
HIGH-VIGOR By HomeGrown USA

HIGHER STOCKING DENSITY LOWER

ANYWHERE HARDINESS PERFECT CONDITIONS

NORMAL GROWTH RATE FASTEST

But NONE have been selected for India’s unique conditions!

Important Truths
•NONE of India’s BROODSTOCK suppliers had
ANYTHING to do with Ecuador's success!
• India’s domestic genetics programs have FAILED the industry.
• India’s importing broodstock suppliers have FAILED the industry.
• India’s shrimp industry is over $7billion! But it does not have its OWN
shrimp genetics supply. Absolutely inexcusable!
 It is time for ACTION or……. become irrelevant
Leading Countries where PRIVATE INDUSTRY invests in their own genetics R&D:
• Ecuador – Invests $15+ million per year on genetics R&D – 23 years
• China – Invests $10-$20+ million per year on genetics R&D – 6 years
• Thailand – Invests $15+ million per year on genetics R&D – 20 years
• India – ?????

An effective genetic program for India will take TIME and MONEY, but:
If a small shrimp farming company in the US can afford to invest $millions to solve its issues,
then surely a $7.2 Billion industry can spend a couple of $million to do the same!

Focus on a genetics program that work NOW, not fancy GENOMICS that may pay dividend
some time in the future.

IMPORTANT: Genetics are not the ONLY solution India needs

What makes API different – forged through adversity
• API is the ONLY company that was founded to solve commercial
shrimp production problems – FOR ITSELF!
• We are a commercial farm, and our shrimp wouldn’t live.
• Our little farm invested $MILLIONS to solve this.
• API copied the Ecuadorian program and IMPROVED on it.
• Only API owns its OWN state of the art genetics lab.
• Only API has the diverse founder stocks, the breeding center and DNA
capability inhouse to develop a commercially productive INDIAN
shrimp
BUT, we are not just genetics….
Adversity has brought us so much more…
• AquaXel™ – a management tool built by farmers for farmers
• Sun Shrimp® - a brand of premium shrimp
• Hydro-Life™ - a sustainable way to grow shrimp at high densities
• GAT™ - a revolutionary autonomous culturing system designed to maximize
stable output of the highest quality shrimp
• SolarDO™ - a system that allows shrimp farms to oxygenate their ponds using
the power of the sun
 Genetics is a NUMBERS game.

The more shrimp crosses, the more samples

we do, the more survival studies, the better
the genetic gains and stability we can create.

That is why API invested in one of the most

advanced genotyping labs in the world.

Over 2,500,000 Shrimp Genotyped

 No other
company
comes even
close.

Over 2,500,000 Shrimp Genotyped

DNA Prep Liquid Handling Amplification Spectrophotometry
 Survival Study
Allows us to test many different
crosses at same time in actual
production environment

Using DNA testing we know

exactly how many shrimp in the
pond below got each cross

Select for specific: We do not care why certain

• Salinity shrimp do well. Only who are
• Temperature range their parents…so we can
• Stocking density reproduce them.
• Diseases
• Feeds
• Harvest Size
 At stocking
All crosses are same size and
uniformly presented

Using DNA testing we know

exactly how many shrimp in the
pond below got each cross

Select for specific: We do not care why certain

• Salinity shrimp do well. Only who are
• Temperature range their parents…so we can
• Stocking density reproduce them.
• Diseases
• Feeds
• Harvest Size
 At Harvest
Find which families had
the highest survival

Select for specific:

Then find families that
• Salinity had fastest growth
• Temperature range
• Stocking density
• Diseases
• Feeds
• Harvest Size
 Cross # Survival Rate Avg.Size (GR)

1 129% 18.5

2 122% 22.4

3 116% 24.4

4 100% 20

5 92% 23.2
Assume Pond Average Size at
Final Harvest 20 Grams
6 67% 24.4

7 47% 27.7
 Cross # Survival Rate Avg.Size (GR)

1 129% 18.5

2 122% 22.4
Most genetic
Programs will 3 116% 24.4
choose the
largest shrimp. 4 100% 20

5 92% 23.2
Assume Pond Average Size at
Final Harvest 20 Grams
6 67% 24.4

7 47% 27.7
 Cross # Survival Rate Avg.Size (GR)

1 129% 18.5

2 122% 22.4
But the largest
animals have 3 116% 24.4
poorest
survival!. 4 100% 20

5 92% 23.2
Assume Pond Average Size at
Final Harvest 20 Grams
6 67% 24.4

7 47% 27.7
 Cross # Survival Rate Avg.Size (GR)

1 129% 18.5

2 122% 22.4
API will always
select family 3 116% 24.4
with HIGHEST
survival FIRST. 4 100% 20

5 92% 23.2
Assume Pond Average Size at
Final Harvest 20 Grams
6 67% 24.4

7 47% 27.7
 Cross # Survival Rate Avg.Size (GR)

1 129% 18.5

But Highest 2 122% 22.4

surviving family
has smallest 3 116% 24.4
average shrimp 4 100% 20
??
5 92% 23.2
Assume Pond Average Size at
Final Harvest 20 Grams
6 67% 24.4

7 47% 27.7
 Cross # Survival Rate Avg.Size (GR)

1 129% 18.5

So how do 2 122% 22.4

we get 3 116% 24.4
faster
4 100% 20
growth?
5 92% 23.2
Assume Pond Average Size at
Final Harvest 20 Grams
6 67% 24.4

7 47% 27.7
 Cross # Survival Avg.Size
Rate (GR)

1 129% 18.5
Selected Average

32 grams+

We only Choose
the largest
animals from
within the highest
surviving family
 Cross # Survival Avg.Size
Rate (GR)

1 129% 18.5

Individual
Shrimp#145
weight = 35.6
Grams
 Cross # Survival Avg.Size
Rate (GR)

1 129% 18.5

We plot
individual
shrimp
from highest
surviving
family
Don’t just COPY Ecuador
• India has MORE land
• India has MORE labor
• India has MORE (natural) resources
• India has (potential) HUGE domestic market
• India has STABLE economy, political system – NO Cartels!
Improve on Ecuador!
Take advantage of India’s abundance
Develop a long-term competitive advantage
A crisis is a terrible opportunity to waste…

Three Steps for the RESILIENT

Accept Change Execute

A crisis is a terrible opportunity to waste…

Accept Change Execute

• There are no quick or easy solutions

• The industry is rapidly transforming from primitive to industrial
• Competition WILL increase – Survival of the fittest
• There will be winners and there will be losers
• Whatever happened in the past is IRRELEVANT
• Only the RESILIENT will have a chance
Insanity is doing the same thing over again
and expect a different result…
Accept Change Execute

• Return to basics
• Do not believe everything you are told!
• Concentrate on things that actually matter
• Get informed, learn from other countries
• Try and develop new technologies – Fail, try and try again
• Focus on cost of outcomes, not cost of inputs
• Farming is a business – NOT a hobby
Execution is key to success

Accept Change Execute

• Become ruthlessly EFFICIENT – if something does not work, STOP

• Measure everything … It is the only way you can really manage
• Use NUMBERS to make decisions… not feelings
• Invest in the tools and training to improve operations
• Care about QUALITY – your competition does!
• Only buy, stock and feed shrimp you can ACTUALLY harvest
 Example of a new India Strategy…
Develop a new shrimp optimized to grow to 15 grams in India’s conditions.
Convert India’s shrimp industry as follows:
Build Nurseries capable of growing 1 gram shrimp
Stock 170,000 HA of 1 gram shrimp @ 10 shrimp per meter in growout
Growout cycle of 25 days – 8 HARVEST per year of 15-gram shrimp
90% real survival – FCR <1 = 1,836,000 TONS per year
Stable production of high-quality shrimp. More cycles, better cash flow, more
efficient use of resources. No great demands on water or environment. Minimize
disease issues.

MANY more options exist. Re-imagine everything

API is ready to partner with the RESILIENT

Do not let this crisis go to waste
Thank you members of HATCH
Together we will be RESILIENT
Survival is in our DNA
It is our gift of adversity