Shrimp farming has caused catastrophic mangrove loss in tropical countries. This environmental destruction has both ecological and welfare implications.
Shrimp farm-driven mangrove destruction creates welfare impacts that extend far beyond the shrimp themselves. Mangrove ecosystems support enormous biodiversity — fish, crustaceans, birds, and mammals — all of which lose habitat when mangroves are cleared. The fisherfolk whose livelihoods depended on mangrove-associated fisheries face economic devastation. Coastal communities lose the storm protection that mangroves provide, increasing vulnerability to cyclones and floods with direct human welfare consequences. The wildlife that depended on mangrove ecosystems faces displacement and often death. Consumer choices about shrimp — particularly choosing ASC-certified products with no-deforestation requirements — exert market pressure on producers to protect remaining mangroves and restore lost habitat.