government ban on
shrimp production in inland areas. However, a
new low-salinity shrimp farming system has
developed that seems to have fewer disease and
environmental problems than previous systems but
competes with rice production for land and water
resources. The present study found that shrimp
farming exhibits increasing returns to scale and
is much more profitable than rice farming, which
offers opportunities for rice farmers to improve
their incomes through diversification. No
evidence was found for external environmental
effects of shrimp production on rice production
or vice versa. A total ban on shrimp production
in rice farming areas does not seem
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justified,
although further analysis on the
environmental effects of this farming
system is warranted. For several
decades, agricultural development has
been central to economic growth in
Thailand, contributing to growth in
employment and foreign exchange earnings
and to improvements in nutrition and
standard of living. Rice and shrimp were
among the top 10 export commodities for
Thailand in 2000. Thailand is the
world's largest rice exporter, followed
by Vietnam and the United States, and is
the world leader in farm-based shrimp
production. Because of recent technical
changes in shrimp production, these two
major agricultural industries, both
supported by the government, are
potentially in conflict. The present
study examines this conflict from the
point of view of the environment and
land allocation, to evaluate the ban on
shrimp production in freshwater areas
that has been imposed by the government.
A discussion of the developments in the
shrimp industry is presented to put the
study in perspective. |