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- 30/05/2025
Blue finance $150m agreement to fund sustainable aquaculture in Thailand
After China, Thailand is the second largest producer of shrimp globally exporting nearly half of the 266,000 metric tons of shrimp produced in 2024
Sustainable aquaculture in Thailand has received a financial boost thanks to a landmark $150 million blue financing agreement signed between the Asian Development Bank (ADB) and the Thai Union Group Public Company Ltd. This is the first time the ADB has provided a loan to the private sector of Thailand’s agribusiness industry.
The aim is to improve the sustainability of shrimp production in the country. The fund will go towards training farmers in improved practices, research and development, trialling new techniques and certification support. The $150 million is composed of $50 million directly from the ADB’s capital resources and the remaining $100m syndicated as a B Loan from a consortium of international banks including the Bank of China, HSBC and MUFG Bank (Singapore).
Why does this matter? Thailand is the second largest producer of shrimp globally, after China. Thailand produced 266,000 metric tons (mt) of shrimp in 2024, nearly half of which was exported. Globally, shrimp farming has an outsized footprint financially and environmentally. The world shrimp marked was valued at $45.3bn in 2023 and is expected to reach $102.6 billion by 2034 due to its growing popularity.
However, shrimp farming has a carbon footprint that can exceed pork in terms of emissions intensity – an average of 13 kg CO2e/kg. Half of these emissions are down to shrimp feed. Commonly, soy may compose 30% of their diet but intensive monoculture farming of soy is a leading cause of rainforest clearing in South America. The other half of direct shrimp farm emissions come from the energy required to mechanically aerate water.
Further environmental degradation occurs if mangrove forests – high carbon sequestration reserves – are cleared to make way for the aquaculture industry. Meanwhile, antibiotics, shrimp waste and uneaten feed contribute to water pollution that can result in algal blooms and ecosystem disturbances. Thus, the blue financing agreement for sustainable aquaculture in Thailand comes at an opportune moment.
Two companies in Ocean 14 Capital’s investment portfolio are contributing to improved aquaculture sustainability. SyAqua, based in Singapore, is revolutionising shrimp genetics and alternative feeds to preserve wild fish stocks. In China, 60% of hatcheries are SyAqua customers and the company delivers some of the most competitive industry results.
AquaExchange is a technology platform analysing data on shrimp and fish production. Understanding the data helps companies to reduce crop expenses, manage crop finance and automate the procurement and harvesting for aquaculture farmers. AquaExchnage currently automates large areas of shrimp farming operations in India, some12% of the domestic industry. Ultimately, their work improves the productivity and profitability for the aquaculture ecosystem.
Complementing these private sector efforts is a £3 million ($4 million) research initiative led by the University of the West of Scotland and partnered by the University of Strathclyde is aiming to revolutionise shrimp farming in South East Asia. The three-year project is developing low-cost, real-time monitoring tools to help small-scale farmers detect pathogens, monitor water quality and predict environmental threats using biosensors and AI-driven climate modelling.
By working closely with local farmers in Vietnam and Thailand, the team ensures the technologies are practical, affordable and gender-inclusive. The tools are designed to reduce mortality rates and boost productivity – offering a scalable blueprint for sustainable aquaculture across the region and beyond.
As global demand for shrimp continues to rise, the need for more sustainable, transparent and resilient aquaculture systems has never been greater. From major financial backing and cutting-edge genetic and digital innovations to grassroots-level research supporting smallholder farmers, a range of coordinated efforts are converging to transform shrimp farming in South East Asia.