In 1978, the Chacheongsao Fisheries Station began experimenting with
Artemia culture, acknowledging both the importance of brine shrimp
eggs to Thailand' growing aquaculture industry and the potential for
commercial production of cysts in the country. Sight selection for
the first experimental pond was made in Cholburi Province where a
modified salt flat was innoculated with nauplii from Brazilian and
San Francisco strains simultaneously. Allowing the pond's salinity
ot increase from solar evaporation, oviparous behavior developed,
producing small qauntities of cysts which floated to the surface and
collected in corners of the pond. Cysts, gathered several times each
week, were delivered to the Fisheries Station for processing. Using
uncomplicated but effective washing and drying techniques, Staion
personnel achieved high hatching efficiencies (reported 90–98%) from
the experimentally produced cysts (Anand Tunsutapanich, 1979) A
general history of the brine shrimp industry is given in Annex 22.

By May 1980, several salt farmers in the Chacheongsao, Cholburi, and
Samut Songkram Provinces were approached by the station management
and encouraged to permit expanded cyst production experiments on their
land. Largely uninformed as to the biological functions of Artemia
and the requirements for cysts in aquaculture, the farmers were reluctant
to cooperate. However, once the immediate value of properly
cultured and processed eggs was established, approximately eleven
farms consented to pond innoculation. By August 1980, four months of
intermittant production on approximately 35 rai (all farms, including
the starting period) yielded 600 kg wet weight of cysts, which were
processed to 300 kg dry weight.

With the assistance of a private trading company, most of the 600 kg
was purchased directly from the farms at Baht350/kg wet weight (Us417.50),
irrespective of quality. The firm's willingness to assume the financial
risk of purchasing a yet unrefined product was of major importance
to the development plan, creating incentive to the farmers for participation.
Coupled with the technological assistance and processing services
of the Chacheongsao Fisheries Station, a developmental relationship
among producers, processors and marketeers evolved.

During the last five years, worldwide demand for Artemia cysts (excluding
hobbyist use) has risen at an average of 15% per year. Based on a
comercial user study (Aquafauna, 1980), cyst requirements in 1975 were
approximately 23 metric tons and, by 1980, demand had increased to 46
metric tons (Table 2).

Prior to 1977, aquaculturists relied heavily on three commercial
sources of Artemia cysts, and during the 1975–77 period, users faced
severe shortages of high quality cysts testing at 70% or higher
hatchability. High prices, accompanying the shortage in suplly,
caused some hatcheries to cease operations. As a result of these
problems, interest in expanding the supply of cysts grew rapidly,
by intensifying the harvest of existing natural salt lakes and
by developing new sources of cyst. What followed in early 1977,
was the successful innocualtion of the Macau, Brazil salinas with
250 g of the San Francisco Bay Artemia strain. Within three months,
the culture of Artemia had spread by natural land bridge to over
24,000 rai of solar evaporation ponds.

By September 1977, six metric tons of cysts (dry weight) had been
harvested and processed. The salt works demonstrated continued cyst
production during 1978 and 1979, with approximately 14 metric tons
being collected.

During 1979, the world supply for Artemia cysts was estimated to be
95 metric tons of product with a hatching performance of 50% or better.
Here, “hatchability” is defined as a percentage calculated by dividing
the number of free swimming nauplii per gram obtained (after 48 hrs),
by the number of dry cysts per gram as measured before hatching (Annex 23).
The supply of 70% hatchability stocks was estimated at 35 metric tons
(Table 3).

To highlight another recent change impacting the commercial supply
of quality cysts, Utah, during the 1978–79 production years, showed
marked improvement in quality as compared to the Lakes output for the
preceding 12 years. The changes are attributed to a better raw stock
produced by cyclical climatic changes and improvements in processing
techniques.

Today, in terms of total supply and demand for Artemia cysts, no shortage
of product exists. A trend which has developed recently, however, is
the noted preference of hatcheries to use particular strains of nauplii
in larval rearing. Based on data obtained from the International Study
on Artemia and the Artemia Reference Center, Artemia from some sources
yielded better or worse larval growth and survival rates than did
nauplii of other sources for certain species of fish and crustacea.
Consequently, to commercial users of cysts today, nauplii size, ease
of shell separation, and biochemical composition of the nauplii are
equally important as are factors of price, hatchability, and availability.

When these six characteristics are diliberated by the aquaculturist,
several factors influence the importance he places on specific features
of the cysts; namely, a) the species that is being cultured, b) the
buyer's ease of sourcing a substitute product, and c) the ability to
economically trade-off one product trait for another. These six product
characteristics are described briefly:

Hatchability: A percentage; the number of hatched free swimming
nauplii from a unit weight (one gram) of cysts divided by the
number of dry cysts of the same unit weight after 48 hours of
incubation (some laboratories use 24, 32, 36, 40, and 44 hours
for their testing, which is a function of testing methodologies
and temperature of the incubation solution).

Price: The F.O.B. supplier warehouse price or total C.I.F. landed
cost at destination. The selection of either is usually part of
the business negotiation process or stipulated exporter's terms.

Availability and Product Consistency: The lead time necessary
to secure adequate supply and the dependability of the supplier
to provide consistant product qualities from shipment to shipment.

Nauplii Size: The average species naupiar length (in microns)
usually measured at 24 to 48 hours (when nauplii become free
swimming).

Ease of Separation and Handling: The manpower requirements to
set up and maintain repeated commercial size hatches (does the
cyst require chlorination, pretreatment, etc.,), and on completion
of the hatch cycle, the amount of time required and the degree
of difficulty to separate the nauplii from spent egg casings and
unhatched cysts.

To put these features in some perspective, Table 4 compares the significance
placed on each characteristic (priority) by various aquacultural
groups raising different species (Aquafauna, Inc. - 1980) :

Interestingly, all but one of the characteristics rated in Table 4 can
be tested fairly quickly. Hatchability, ease of separation, and nauplii
size may be determined upon receipt of the product. The decision making
process for price and perception of availability is made even before
delivery is initiated. However, the bio–chemical effects of individual
cyst batches from known sources often take weeks or months to assess and
the procedures are often too costly or complex for hatchery analysis.
In the case of cyst contamination, although nauplii may not cause immediate
mortality in the predator larvae, abnormalities and mortalities
could occur later when the larvae undergo metamorphosis or weaning, and
body tissues release accumulated toxins rapidly.

On the subject of toxicity, however, it must be emphasized that a source
of cysts should not be condemned forever for producing one or more
batches of “contaminated” product. Most species' larvae tolerate some

Level, methods of production and design were implemented in ponds
used for salt production. Social considerations presented barriers
since much of the salt production occurs on small land holdings,
with farmers fearing that experimental changes would affect salt
production levels. With cooperation and assurances from the Chacheongsao
Fisheries Station, the first design implemented was a 30 cm trench
system where an intermediate pond (in the series of salt production
ponds) was trenched along its peripery. This allowed better thermo-regulation
for the Artemia since a larger mass of water takes longer to
heat up or cool down than does a smaller mass. Water is evaporated
over a wide range in the same pond before being transferred to other
ponds for further evaporation. Optimum salinity is attained at some
level of evaporation which fosters bio–mass production of Artemia.
With application of fertilizers, population density is maximized given
other favorable ecosystem factors such as density and type of nutrient,
dissolved oxygen, temperature and pH.

During 1980, some 35 rai were innoculated in various stages, producing
600 kg of wet cysts. This production averaged 4 kg wet cyst per rai
per month. (25 kg/ha/month). The pond design employed is characterized
as a Static System type (Annex 24) and is used extensively in salt
production where the dry season may be short or where land holdings
are limited. Sea water is allowed to evaporate in an enclosed pond,
achieving salinity changes up to 80 parts per thousand before being
transferred to higher salinity ponds for continued wide–range evaporation.
This type of system contains inherent disadvantages for maximum
cyst production. While the Artemia population is able to adapt sufficiently
well to salinity changes at the lower ranges (below 150 parts
per thousand), the food chain supporting the population will undergo
several culture changes. It is known that Artemia will survive on a
variety of cultures; however, certain algal groups tend to foster
population blooms while others do not readily contribute the same
nutritional attributes. In more efficient cyst production systems,
salinity is held relatively constant so that the Artemia population
and food chain can better establish and maintain themselves. The static
system ponds currently in production, cost an average of ฿2,400 per
rai to manually construct (Annex 25). Using mechanical means, this
cost can be reduced by half to about ฿1,250 (all trenching 2 meters
wide).

Two alternative systems are recommended to improve the efficiency of
cyst production. Both systems are by–product operations working off
salt evaporation ponds. First, the Modified Two Stage System (Annex 26)
is a series of two ponds which manages and maintains salinity at relative
constant levels. The first stage is usually held at salinities
conducive to bio-mass production in the range of 80–100 parts per
thousand. The second stage provides the trigger mechanism for oviparous
behavior with salinity levels up to 50% higher than the first
stage. Population transfers between the two ponds should be by continuous
flow, the rate of which is equal to maintain the salinity
difference of the second pond. Three major conditions are affected
when bio–mass is delivered from stage one to stage two pond: a)
salinity increases, b) dissolved oxygen decreases, and c) the food
chain is disrupted. These abrupt environmental changes should present
enough stimuli, which in total, work against oviviparous adaptation.
The two stage system can be implemented in smaller salt farms currently
containing four or more separate ponds. The design requires trenching
both ponds, at least 30 cm around the periphery (by two meters wide).
Manual construction costs for the modified two stage system is ฿4,800
per productive rai (Annex 25). The mechanical construction cost is
about ฿2,500 per productive rai. The two stage system is estimated
to contribute a 15% efficiency factor in syct production over static
systems.

The second alternative for production efficiency is the Flow Through
System, which can most practically be incoporated in larger salt farms
having six or more ponds. By comparison. large scale cyst producing
sources utilizing solar evaporation like Macua, Brazil and San Fracisco
Bay, California are predicated on the flow through design for salt production
efficiencies. Artemia culture is of secondary consideration
and is strictly a by–product operation. The conceptual design allows
a continuous flow of water which evaporates to higher salinities as it
proceeds from one pond to the next. The flow rate of each pond is
adjusted until the desired salinity of that pond can be maintained
without stopping the flow process. This system requires some pond
management and experimentation to determine the proper flows such that
salt production is not sacrificed in favor of Artemia production.
The ideal situation is to maximize both salt and cyst output (Annex 27).

Each flow through design has numerous characteristics that must be
addressed. For example, evaporation rate may be a function of temperature,
exposed surface area of the ponds, depth of the ponds, wind,
etc.,. For San Francisco Bay, reported flow through time (time it
takes seawater to evaporate to crystalization) is 3–3 ½ years due to
latitude and other temperature conditions. For Macau, Brazil, the
process is accomplished in about 7½ months even though the average
depth of the evaporation ponds is three to four times that of San Francisco
Bay.

Again, the objective of the flow through system is to continuously
provide new bio–mass which can be stressed to trigger oviparous tendencies.
Adapting this concept to existing salt pond requires trenching
for thermo–regulation of the organisms. Like the two stage system,
it is recommended that two ponds in the series of flow through ponds
be modified for optimum bio–mass production. Relating this design
to a 12 rai farm in Chacheongsao Province (Annex 28), ponds do not
have to follow linear patterns to achieve flow through. Manual construction
costs for the two pond modification should be the same as
for the two stage system or ฿4,800 per productive rai. Mechanical
construction costs are also the same at ฿2,500 per productive rai.
Ideally, however, a more efficient bio–mass environment would be
created if the first pond (primary bio–mass pond) were trenched to
60 cm producing enough excavated earth to heighten the berm and
increase water depth in the trench to 1.5 meters. This option would
increase construction costs by a third. It is estimated that flow
through systems contribute up to 40% more efficiency in cyst production
over the currently used static system and 22% more than the modified
two stage system.

Currently, all Thai Artemia cyst processing is conducted at the
Chacheongsao Fisheries Station. Procedures for washing and drying
cysts were adopted by Station technicians from the literature and
modified to suit local conditions. Although a given batch of product
(50–75 kg wet weight) may take up to two man days drying time, cyst
quality has attained acceptable levels (at least 70% or greater hatchability).

Wet drained cysts brought to the Station by farmers are first weighed
for production statistical purposes and for subsequent financial reimbursement.
The cysts are then rinsed through a two level sieve
using seawater. The larger particles are trapped by the first sieve
(300 micron mesh opening) and the finer waste particles and cysts are
collected by the second sieve (150 micron opening). This preliminary
separation and washing loosens and dissolves soluble wastes. A second
density separation is performed using saturated brine. Approximately
5 kg of prewashed cysts are placed into an inverted 20 liter plastic
water bottle (modified to extract product/waste through the inverted
neck of the bottle). Ten liters of saturated brine solution are
added and the solution is aerated for several minutes. Aeration is
stopped and cysts/light debris are allowed to float to the top while
heavy debris settles on the bottom and is discharged. Cysts are drained
into a cloth sack and washed with fresh water for 4–5 minutes. After
hand squeezing the sack for removal of water, cysts are spread out
2–3 cm thick on newspaper and sun dried. The product is turned 2–3
times each day.

During periods of rain, intermittant solar drying may take two days
to reach a batch moisture level of 10%. When this level is attained
(currently a subjective eye sight judgement), the cysts are collected
and packed at the Station into 425 gram plastic bags or sealed in
425 gram tins by a private firm.

Distribution is being accomplished through a Thai trading company
which currently purchased the majority of the processed cysts, paying
the farmers on a wet (unprocessed) weight basis. Sold to Macrobrachium
and Penaeus hatcheries throughout Thailand, the cysts are marketed
as a Thai produced egg. While there are five strains of cysts distributed
in Thailand today, the locally produced cysts enjoy the
greatest demand among hatcheries and sell at the highest retail price.
This is due primarily to a perceived quality gap (freshness, hatchability,
marketing effort, etc.,) which the home product enjoys over
the other imported strains.

Noting the growing interest in Thailand to produce Artemia cysts
sufficient to meet local demand as well as for export potential,
it is important to examine processing techniques which will accomodate
larger quantities of production than are currently being handled.
As mentioned earlier, two man days are required to finish processing
25 to 30 kg dry weight of cysts. With a minimum investment in screen
mesh, concial 60 liter fiberglass bottle, and absorbant cloth tables,
processing efficiencis can be increased three–fold (75–100 kg dry
wieht per two man days), at an average processing cost of ฿3 per wet
kg (Annex 29).

Based on weighed average of the Cholburi exerimental pond, overall
production during 1979–1980 of 35 rai, and productivity estimates
of Chacheongsao technicians, an average monthly yield per productive
rai should be 8 kg wet weight of cysts. Wet weight to dry weight
conversion is two to one (Tunsutapanich, 1979). The following procedures
and recommendations are geared to the output of 250 productive
rai (seven times the current production area). At the levels, if
achived, this area would produce a processing inventory of 2,000 kg
wet weight per month. Since Thailand benefits from low labor costs,
recommendations will revolve around manual efficiencies rather than
capital intensive systems. Economics of scale can be achieved by adding
personnel cheaper than labor savings devices, especially during
the experimental stages of development.

Cyst Collection: Artemia cysts should be collected everyday so that
unexpected rainfall (or evening condensation where applicable) does
not damage viable cysts. Normally, even a light breezer will push
the floating eggs into one area of the pond; along a bank or in one
corner. A fine net with mesh of 150 microns can be used to gather the
cysts. To facilitate cyst processing, the farmer should be instructed
to net only cysts and to avoid scooping up sand and other non–floating
debris. If by nature of the bank design, or for any other reason this
procedure is not practical, the pond bank where normal collections
are made, may be lined with scrap wood, used polyethylene sheets,
rocks, or burlap to mat down the loose soil or sand. Accumulated
cysts should be placed into a cloth sack and submerged in a saturated
brine vat until ready for processing. Under normal production, eggs
should not be accumulated for more than two weeks before processing
and all storage vats should be kept under cover from the rain.

Cyst Washing: Collected cysts should contain little debris, however,
the amount is difficult to determine, especially if many farmers are
involved. Therefore, both a saturated brine separation and a freshwater
float–off method is suggested. If, through practice, the farmers
learn to collect only floating cysts, however, as evidenced by the
amount of heavy debris collected in the brine separator, brine separation
may be discontinued for those sources (farms) of cyst production.

Cyst washing should be performed early in the day to maximize
the number of available solar drying hours. This procedure is
designed for a single worker washing 15 kg wet cysts with up to 10
wash cycles per day. First, a two level sieve (similar to the type
used at Chacheongsao) should be utilized, capable of holding 15 kg
wet weight on the bottom sieve. Mesh size for the top level should
be about 300 microns and 150 for the bottom sieve. Screens should
be constructed of stainless steel mesh for durability and stretched
across stainless steel retainer rings. Wooden retainer may be used
but with product weight, the sieves will be in excess of convenient
handling weight. The sieves should not cost more than ฿1,200 to construct.
With a constant flow of seawater, wash 15 kg of cysts through
the top sieve, extracting larger debris, and collecting the finer
particles and cysts in the lower sieve. This procedure should take
approximately five minutes.

Second, transfer the 15 kg cysts into 30 to 40 liter of saturated
brine in a 60 liter conical shaped container. The container construction
cost is estimated to be ฿1,500 if constructed at the Fisheries
Station. The container should drain at the bottom through a clear
plastic hose. Aeration or agitation should separate heavy debris which
will sink to the bottom and collect in the valved hose. This procedure
should not require more than 10 minutes per 15 kg wash batch. Release
heavy debris accumulated in the hose first then revalve. Further
draining should collect the saturated brine for re–use several times.
Drain the cysts into a cloth bag and rinse with clean saltwater to
remove most of brine solution (one–two minutes).

Third, using the same conical container with 30 to 40 liters of
freshwater, cysts are subjected to the final wash and separation
where all light debris is floated off. Viable cysts will sink in
freshwater while shells and light debris will float. The solution
should be aerated near the container sides, allowing cysts to sink
toward the cone apex. Aerate or agitate for 3 to 5 minutes; then
allow the mixture to settle (stop aeration) for five minutes. Surface
easte can be skimmed off or floated off with the careful addition of
more freshwater to overflow the container without unsettling the cysts
on the bottom of the container. The separated cysts should be drained
into 4 cloth bags and gently squeezed to extract excess water.

Cyst Drying: The key to successful cyst processing is to remove as
much moisture as possible from the freshly washed eggs in the least
amount of time without burning or damaging the product. Acceleration
of the drying process can be accomplished by using the centrifugal
action of a clothes washing machine. Good condition used washing
machines can be obtained in Thailand for less than ฿2,000.

Each of the four draining cloth bags containing cysts (3–4 kg each)
should be sealed and hand flattened to the inner contour of the washing
machine drum, each occupying a quadrant of the space. Setting the
machine on the spin cycle, centrifuge for about 8–10 minutes. Upon
completion, remove cysts from the sacks and spread the mass, 1 cm thick,
onto muslin (or other highly absorbent cloth) which is stretched on
farming bars and suspended off the ground. Approximately 3–4 square
meters of this drying rack will be required for each 15 kg cycle.
Product should be turned and rescattered on the rack two or three
times during the day. Drying temperature should not exceed 50 degree
Centigrade. Drying should continue until batch moisture falls to
between 4 to 8% on a per wight basis (Annex 23). If drying time
takes more than one day, cysts must be collected at sunset and stored
in airtight container for the evening.

Packaging: Before the cysts are packaged for storage or for sale,
batch should be tested (Annex 23), and the results recorded for
statistical and sequential inventory control. It highly recommended
that all cysts are packed in airtight sealed tins. Even if the majority
of users are located within 250 kilometers of Bangkok, cyst quality
over time tends to be protected, as well as transportation damage
prevented, thus warranting the packing investment. All labels on tins
should be coded and logged with the test performance of each processed
batch. While this procedure may seem time consuming for the home
market due to proximity of suppliers and user, it becomes exceedingly
important for export sales and products stored as inventory.

A sampling of Macrobrachium hatcheries revealed that seven types of
cysts are currently in use. While these seven may represent labeled
brands, the generic sources of these cysts are limited to five locations:
Thailand, California, Utah, Canada, and Brazil. Cysts from
China were reported by one hatchery, but these are not readily available
to most users. Retail prices for both imported and domestically produced
cysts varied widely, ranging from ฿1,760 to ฿2,200 per kilogram.

Domestically produced cysts are generally priced at parity with imported
cyst for several reasons: a) the Thai cyst is generally preferred
due to a perception of “freshness” and being locally produced,
b) the production of Thai cysts is limited and is hence in short supply,
c) to effectively reach the small hatcheries, multiple distributors
are often employed, each adding their commission to the sale price,
and d) when comparing the raw cyst value to foreign production (that
amount which is paid to farmers for unprocessed cysts), the per kilogram
yield is high. High production cyst value is good for the farmer
but tends to increase the retail price disportionately when other
processing, marketing, and sales margins are computed.

The current pricing of Thai cysts, while being high by most country
standards, adopts the substitute product (imported cyst) pricing
structure. In addition, the price structure today does not fully
allocated all cost in order to transform the raw production into a
marketable product. All processing is being done for the farmers by
the Chacheongsao Fisheries Station since the technology and equipment
required to maintain quality control is too advanced for most producers.
This service, while assisting in the development of the home industry,
is still a subsidy, whose cost factors would normally be included as
a price element if processing were accomplished in the private sector.

The marketing and sales margin of Thai cysts is three times that of
production and processing costs. Normal sales margins for brine
shrimp cysts would be a doubling of the processed value. Base on
interview, however, distributors in Thailand run higher than normal
risk (20%) due to non–payment for goods, since sales are often based
on flexible credit terms to accomodate small hatcheries. Coupled
with the smaller order size of each hatchery, administration costs
for sales are generally higher.

If local production is unable to fulfil domestic demand, it is doubtful
whether the current pricing structure will change. If, however,
Thailand is successful in producing quantities in excess of local
requirements, and the potential for export is realized, drastic changes
in pricing must occur to position Thai cyst competitively on the world
market. Of the six imported brands sold in Thailand, F.O.B. prices
for cysts at origin (mostly from the United States and Canada) range
from ฿350 to ฿970 per kilogram. These levels are also available to
the general public in the home country. Similar levels must be adopted,
at least for export production, if Thailand hopes to gain a foothold
in the world market share.

A typical breakdown of margins and resulting revenue for salt farms
is given in Table 5. below, comparing the current pricing structure
and an export structure (see Annex 30, for assumptions).

COMPARISON OF THE CURRENT PRICING STRUCTUREAND EXPORT STRUCTURE OF CYSTS

Current Pricing of Thai Cysts Competitive with Imported Cysts

Proposed Export Price Competitive with Other World Producers

Price Paid to FarmersBaht/wet kg

350

225

Prcessing Loss Factor(reduction by 50%)

350

225

Processing Labor

0

35

Marketing/Sales(includes multiple distributors)

1,500

485

F.O.B. ThailandBaht/dry kg

2.200

970

Under competitive export pricing, the farmer is capable of earning
฿225 per processed kg of cysts produced. This represents a 36%
reduction of the price they currently receive per kilogram of production.

Given the parameters of production and pricing for Artemia cysts in
Thailand, a cost benefit analysis was conducted to determine whether
a salt farmer could derive supplementary income from the culturing of
brine shrimp for cysts. The production assumptions for Artemia are:

Season for production is six month (January to June)

Production is computed under three scenarios: Existing
Static System, Modified Two Stage System, and Flow Through
and for two different depth options: at 30 cm and at 60 cm
(Annex 31)

The income per rai from a 30 rai salt evaporation farm (Cholburi
Province) was used as the basis for comparison. Crystalization
occured over a 4 month productive period in six of the thirty rai,
the remainder being considered as support ponds. Production for the
season per rai contributed ฿9,600 from the output of 96,000 kg of salt.
Whether all cost (land, labor, etc.,) were covered by revenues (฿10/
100 kg) are not considered in this analysis.

The supplement of income (Table 6) indicates that a salt farmer can
earn more than twice his current salt income by incoporating a 60 cm
trench on a flow through system, providing the current price structure
is applied. More realistically however, export pricing would yield
the farmer about ฿13,500 in supplementary income per rai per season.

Thailand currently consumes about 1.5 metric tons of Artemia cysts
per year. In 1980, home production fulfilled 20% of this requirement.
Total consumption is primarily utilized in Macrobrachium, Penaeus and
Sea Bass projects, while a minor share is used for general marine
culture and laboratory study. Total C.I.F. value for the imported
quantities of Brine shrimp eggs is estimated to be between ฿800,000
to ฿1,030,000. Given the rate of development in fisheries programs
requiring Artemia, Table 7 forecasts Thailand's cyst utilization
through 1985 (Reference Economic forecast on Macrobrachium)

Note: Average utilization efficiency of Artemia equal 21,000 P.L.
produced per kg of cyst (sample of nine hatcheries). Total
use for Macrobrachium estimated at 50% of total Thailand
requirement on annual basis. Penaeus/marine culture estimated
at 50% of cyst consumption.

Based on existing production systems, Thailand would have achieved
self sufficiency in 1980 with about 63 rai in production for the six
month season. This level could also have been achieved with about
40 rai providing Flow Through Systems were incorporated. By 1981,
it is estimated that there will be 125 rai in some stage of production.
Coupled with increased utilization for aquaculture, the lead time for
education of the salt farmers, improvements in processing capabilities,
and general competitive factors, it is not anticipated that Thailand
will be independent of imported cysts until 1983.

It should be recognized that as Thailand moves closer to supplying
its own cyst requirements, the financial incentive to produce Artemia
cysts will decrease, since the developing home supplier must adopt a
more competitive pricing/cost structure as compared with other world
producers. While producing cysts may prove to be financially viable
in the short run, Thai farms will be competing with lower cost production
systems in the long run. Even if export quantities are
achieved and priced competitively, market share for equivalent product
does not usually come free, but as a result of being bought upon
initial introduction. In most industries, the established producers
will follow any pricing action to maintain their market share and in
the end, the cost of production, reputation, and diversity of product
lines (versus product dependence) will dictate the opportunity investment
decision. These factors become finacially inhibitory as long
as there is greater supply of cysts than exist the demand for them.
The ability to hold cysts in inventory for several years until climatical
conditions or aquacultural growth oreate a demand, usually support
projects with the lowest capital requirements. Unfortunately, this is
characteristic of the industry, since most of the commercially viable
production sites produce yearly stocks of more than 20 metric tons-
irrespective of the world demand.