ABSTRACT
Shrimp and prawn are two closely related animals that have been successfully reared in farm operations. Due to the unique growth characteristics of these animals the technology, production facilities, and cultivation practices for shrimp and prawn are quite different. The uncertainty in shrimp farming arises from volatile market prices, variable growth rates, and changing survival rates. Farmed shrimp in the United States constitute a very small fraction of the total shrimp market, so prices received by farmers vary with the world price. Shrimp farmers can improve growth and mortality rates by controlling environmental growing conditions and selecting for shrimp genetics. The policy recommendations maximize expected net revenues. Although uncertainty is captured by the model, the recommendations assume that the farmer is neutral with respect to the risk.
