Shrimp Aquaculture in Sarangani Bay: Past and Present Experiences

by: Marfenio Y. Tan

To our distinguished guests,

Senator Cynthia Villar,
Secretary Proceso J. Alcala of the Department of Agriculture,
Undersecretary and Director Asis Perez of the Bureau of Fisheries and Aquatic
Resources,
Congressman Emmanual Pacquiao of Sarangani Province,
City Mayor Ronnel Rivera of General Santos City,
Governor Steve Solon of Sarangani Province,
Regional Director Sam Malvas of BFAR 12,
Mr. Roberto Gatuslao, President of PhilShrimp,
Mr. Marjun Villanueva, President of SARGEN Shrimp,
our honorable City Councilors,
stakeholders of the shrimp industry,
my friends,
ladies and gentlemen,

It is my honor and privilege to be chosen to share the story of Shrimp

Aquaculture in this part of the Philippines, in our Sarangani Bay.
This story that I share with you is intimately intertwined with my experience
in this industry.
I first heard of the idea of growing shrimp in the year 1986 when I
participated in a fisheries meeting in Baguio City for the crafting of Republic Act
8550 or the Fisheries Code of the Philippines. After delivering my presentation as

keynote speaker representing the tuna industry, I overheard representatives from

Bacolod talking about monodon or the Black Tiger Prawn. They were telling of
stories saying that it was a very profitable business that had the potential to earn
millions. I did not believe them. I told myself that it was impossible to earn
millions from fishponds. I was intrigued. Having been living in Barangay Bula of
General Santos City where fishponds abound, to earn millions from fishponds
was never heard of, as during that time aquaculture harvest of Bangus/ Milkfish
only fetch 10-15 pesos per kilogram.
That time, as I was already supplying tuna to Purefoods Corporation, and
Purefoods was already engaged in buying and culture of monodon, I asked
somebody from the company for help. I was introduced to Mr. Lito Yu and was
invited to observe their monodon farm in Toledo and also ponds in Cebu under
San Miguel Corporation and owned my Mr. Mark Cojuanco. I also got to know Mr.
Felix Yusay through Rotary Club. A new aquantance that time, Mr. Budot
Beccares, even told me, Makalimut ka sa tuna kung masaylo ka sa lukon!,
translated as You will forget about tuna when you switch to prawns!
I had a preconception that ponds must be near the sea or constructed in
mangrove areas. Then, friends in Bacolod toured me around their modern ponds.
I was surprised that ponds there were far from the sea. They have converted
sugarcane plantations into prawn farms.
Before I left for my Bacolod visit, an agent was already encouraging me to
buy a 36 hectare coconut farm in Malapatan as prices of coconut dropped to all
time low of 1-2 pesos per kilogram. Having seen the Bacolod prawn farms, I
immediately called up the agent if the coconut farm was still up for sale. And now,
that coconut farm is SANACOR 1.
I again asked help from Mr. Buhain of Purefoods for the design and
construction of the 36 hectare SANACOR-1 ponds. Simultaneous to that, the
Research Center of the Philippines sponsored a seminar on shrimp aquaculture
in Taiwan. Among the participants invited, that I remember, were myself, Mr. Nick
Alcantara, Mr. George Tan, and Ms. Elena Lim. SANACOR-1 applied the
technology and design of Taiwan shrimp ponds using concrete dikes.
Construction started in 1987.
By August 8, 1988, we had our first harvest of Black Tiger Prawns from
SANACOR-1.
Seeing the success of prawn production, the next day, Sarangani
Agricultural Company, Inc. or SACI started their prawn farm with Dole Philippines/
Dole Seafoods with a total of 252 hectares. There were only few players in

monodon production then. Mr. Rudy Rivera, father of our City Mayor Ronnel
Rivera, and Mr. Abraham Ang were among the pioneers in the Sarangani and
General Santos City area.
The Gensan and Sarangani tiger prawns were mostly for the Japan export
market. Early buyers of monodon included Dole Philippines, Purefoods Corp, AA
Export, and HGR, a Cebu-based company. Purefoods even chartered its own
plane, a DC-3, flying 8 to 10 tons everyday from Gensan to Manila. The prawns
fetched from 300 to 350 pesos per kilogram. SANACOR-1 harvested 10 tons per
day of 41 grammer prawns.
Later, other players came in. Mr. Jon Oson, Mr. Bing Santos, Mr.
Demontao, Mr. Damalerio, Mr. Jugarap, Mr. Amadeo, and the Royeca family
opened prawn farms in Kawas in Alabel and Tambler and Buayan in General
Santos City.
In the late 1990s, I decided to convert my 180 hectare salt farm in Kawas to
SANACOR-2, thus further expanding prawn production.
However, it was also slowly being observed that growth of monodon have
become erratic. At times growth rate was normal, but there were also periods that
growth of tiger prawns was slow and stunted. It was also around these times that
disease on tiger prawns proliferated and the Japan market also slowed down.
Competing prawn producing countries like Indonesia and Malaysia also become
stronger. Prices dropped at around 90 to 120 pesos per kilogram.
By 1997, Dole Seafoods stopped their prawn production and so also did
their partnership with SACI. Other prawn farms also closed down with only RD
Corporation and SANACOR remaining while new buyers like Bomarine and
Lebarios, de Oro, came in.
With the slow growth and dropping prices of monodon, our feed suppliers
Frederic Lim of Hokpo Feeds and Philip Ong of Tateh Feeds recommended that
we shift to vanameii or Pacific White Shrimp production. It was also around this
time that Mr. Oscar de Venecia, brother of the former Speaker of the House Jose
de Venecia and a colleague in the Coast Guard Auxillary advised that I shift to the
fast-growing and sturdy vanameii.
Hokpo feeds invited us to observe vanameii farms in Batangas owned by
Hernan Lim. In 2008, with the assistance of Tateh feeds and Bureau of Fisheries
and Aquatic Resources who provided shrimp fries from Dagupan, we started
vanameii production in two (2) 1-hectare ponds in SANACOR-2.

Fast forward several months and with 40 tons of pacific white shrimp
swimming around in two (2) of our ponds, I had no buyer of the vanameii. Mr.
Gerald Magalona started buying from us 10 kilograms of shrimp, then 20, later 30
kilograms per day. He later connected us with Mr. Nestor Britanya who bought
300 to 500 kilograms every day on cash to cash basis for Manila market. With
consistent supply and quality, the Navotas and Malabon market increased to 1 ton
daily. And slowly demand of Manila increased to 10 tons, then 30 tons everyday
but they were also buying from Bohol, Cebu, and Butuan.
More players joined the shrimp industry in the past 3 years. CP Feeds,
Arowana Feeds, and President Plant feeds has helped starters and new
entrepreneurs. We are now joined by Mr. Bagonoc, Mr. Pedrina, Mr. Magalona, Mr.
Palileo, Mrs. Benzonan, Triple M, and Mr. John Yap.
Today, RD and ECA are already processing vanameii here in Gensan. And
SANACOR is presently building a processing plant. The shrimp industry in
Sarangani and Gensan is slowly penetrating the export market for vanameii
through Maruha, Itotchu, and Welldelight.
The establishment SARGEN Shrimp, a new organization of shrimp industry
stakeholders in this southern part of the Philippines, is one indicator of the
growing strength of shrimp culture in the SARGEN area.
Cooperation and coordination between and among these stakeholders with
the assistance of respective local government units and national government
agencies primarily represented by BFAR, in terms of sharing good practices,
technology, policy, regulation, and biosecurity is a guarantee and assurance for
sustainable development of the shrimp industry is Sarangani and GenSan.
That is my story of the shrimp industy in this part of the Philippines. That is
how a man that recently celebrated 70 years of life intertwined with fishing and
aquaculture sees the path that we have traveled and hoping that it will lead us to
better and healthier future for us and our children.