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Sergipe's Shrimp Industry Thrives, Bolstered by Small Producers and Innovative School Lunch Program

BRAZIL
Tuesday, July 08, 2025, 00:10 (GMT + 9)

The Brazilian state, fourth largest in shrimp production, exemplifies how grassroots entrepreneurship and public welfare programs can transform an industry

Aracaju – Sergipe, Brazil's smallest northeastern state, is making a significant mark on the national aquaculture scene. Its robust shrimp farming sector, boasting over 800 producers and an annual production chain valued at over R$150 million (approximately $27.9 million USD), now ranks as the fourth largest producer of captive shrimp in Brazil. This success is largely due to the state's natural suitability for aquaculture and a unique model heavily reliant on small-scale producers.

Sergipe's annual shrimp production is estimated to be between 10,000 and 12,000 tons, a figure derived primarily from feed consumption, which is the leading indicator in Brazil's largely informal sector.

"Sergipe stands out not only for its production itself, but for the model it adopts," explained Félix Lee, a businessman and coordinator of the Business Chamber of Fishing and Aquaculture of Fecomércio Sergipe. "It is a state with a strong presence of small producers, with cultivation areas of less than 10 hectares, which makes the activity socially important and widely distributed." Lee highlighted Sergipe's pioneering role in shrimp feed production, with an industry established since 1991.

Economic Impact and Market Reach

Beyond its impressive production volume, the shrimp farming sector is a significant economic driver. "In addition to generating R$150 million, it creates a considerable number of jobs throughout the chain — from larvae production to processing and marketing," Lee added. It's estimated that each cultivated hectare generates 1.5 direct jobs and up to 7.5 jobs across the entire production chain, surpassing other agricultural activities like grape growing.

Most of Sergipe's shrimp is destined for other Brazilian states, with Bahia, Alagoas, and Rio de Janeiro as primary buyers. Rio de Janeiro's Ceasa Fluminense, Latin America's largest fish market, receives approximately 60% of Sergipe's production, driven by the state's consumption tradition and strong tourism sector.

Despite its domestic prominence, Sergipe's shrimp faces hurdles in reaching the international market. European Union restrictions on Brazilian fish traceability and the exclusion of farmed shrimp from China's permitted product list are significant barriers. The U.S. market, meanwhile, is already well-supplied by major producers like Ecuador. "Today, exporting is not attractive because the domestic market pays well and does not require the high investments in infrastructure and certifications required by the foreign market," Lee explained. The primary species farmed in Sergipe is Litopenaeus vannamei, commonly known as gray shrimp, which accounts for around 46% of global captive shrimp production.

Pioneering Social Impact: Shrimp in School Meals

Sergipe is also garnering national attention for a groundbreaking social initiative: the inclusion of shrimp in school meals. What began in the municipality of Indiaroba has now expanded to all state schools, fulfilling a 2023 campaign promise by Governor Fábio Mitidieri.

"It was a bold and successful measure," stated Félix Lee. "The high-nutritional-value protein, rich in Omega-3, has a direct impact on reducing school dropout rates, as students look forward to the days when shrimp will be served."

The "Shrimp Fillet in School Feeding" program currently serves 109 full-time schools, boosting the local economy by sourcing crustaceans from artisanal fishermen and family farmers. Investment in the program has steadily grown: from R$609,119.10 (approximately $113,380 USD) for 10,203 kg of shrimp in 2023, it doubled in 2024 to R$1,281,904.92 (approximately $238,440 USD) for 20,406 kg. The initial forecast for 2025 is an investment of R$1,083,440.52 (approximately $201,650 USD) for 17,244 kg.

Implemented by the State Department of Education (Seed), the initiative blends healthy eating with regional food culture, promoting sustainable territorial development. Lucileide Rodrigues, director of the School Food Department, emphasized that the program unites health, culture, and belonging while boosting the economy. The program has been met with widespread acceptance, with many students trying shrimp for the first time at school. Its success has led to plans for gradual expansion to other units in the state network.

The program's success is also credited to the high number of small producers and the crucial role of local companies like the Brasino processing unit in Propriá, the only one in the state with federal certification (SIF). This unit processes all shrimp destined for school meals, ensuring complete traceability for food safety.

"Shrimp is not an elite food," stressed Félix Lee. "It is on the tables of students in Sergipe and, with the strengthening of the sector, it can be even more present in the population’s daily lives."

Tax Reduction and Producer Support

Producers in Sergipe are also benefiting from a significant policy change: the exemption from the Tax on the Circulation of Goods and Services (ICMS) on inputs like shrimp feed, which was previously taxed at 19%. This measure, recommended by state deputy Marcelo Sobral and accepted by Governor Fábio Mitidieri, aims to make fish and shrimp farming more viable.

"This production chain generates jobs, boosts income and brings development to several municipalities," said Marcelo Sobral, emphasizing the growing economic importance of the sector. He noted that the tax reduction is a direct result of collaborative efforts between various public agencies and industry entities.

"When all parties come together, we can achieve significant advances for producers," Sobral added. He highlighted that shrimp is now an affordable protein, with prices around R$15 per kilo (approximately $2.79 USD per kilo), and its inclusion in school meals further solidifies its role as a family farming product.

While a comprehensive aquaculture census is underway, initial estimates suggest that over 80% of Sergipe's shrimp farmers are small and medium-sized producers, often owning less than 10 hectares. "These are the people who will directly benefit from the tax exemption and the incentives we are putting together," Sobral affirmed.

Alessandro Monteiro dos Santos, president of the Shrimp Farmers Association of the State of Sergipe (ACS) and a farmer for 22 years, confirmed the dominance of small producers. "A small producer becomes a big producer when you see the total production. Around 80% of Sergipe's production comes from these small producers," he stated, underscoring their collective impact.

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