Drastic fall in shrimp export earnings

Shrimp exports fell drastically both in terms of value and volume in 2018-2019 thanks to weak demand in international market of local species and failure to introduce farming of vannamei.

Export earnings from locally-produced shrimp have declined to $ 365 million in fiscal year (FY) 2018-2019 from $417 million in FY 2017-2018, according to the Department of Fisheries ((DoF).

Apart from this, the quantity of shrimp export declined to 33,362 metric tonnes in 2018-2019 FY from 36,168 metric tonnes in 2017-2018 FY, the department's data found.

Export earnings from shrimp fell for a fifth consecutive year, the DoF data revealed. Export from shrimp started declining since 2013-14 (FY) both in value and volume.

Currently vannamei is a leading item in the world shrimp market. Because of cheaper price, consumers prefer this item in Europe and USA, the key markets of frozen shrimp.

As a result, Bangladeshi black tiger species lost its competiveness. Exporters said they incurred huge losses in the last five to seven years.

A senior official of the DoF told the FE that the global market is glutted with vannamei as it is available at a low rate and the production rate is high.

"Most of the farmers in our country do not have world class certifications which the international buyers demand that cast a blow for dwindling shrimp exports", the official said.

The government is now positive to introduce vannamei farming in full scale across country immediately as the country's shrimp is gradually losing global market share, he added.

Talking to the FE, Ashraf Hossain Masud, Senior Vice President, Bangladesh Frozen Foods Exporters Association (BFFEA), said shrimp exports have declined both in terms of value and volume since 2013-2014 FY.

The production of black tiger and galda (fresh water prawn) has dwindled because of shrinking of farming area, seed crisis and price fall, Hossain said.

The government is providing support to us to initiate vannamei farming in Chittagong and Khulna as a pilot basis, he added.

Vannamei farming would start as a pilot basis within November this year, Masud said.

He stressed the need to begin full-scale Vannamei farming within two or three years to survive in the global market.

It will be difficult for the exporters to get recovery in exports in this current circumstance, so the government must come forward to extend its support to this sector immediately to build infrastructure for Vannamei farming, the senior vice president said.

Frozen shrimp exporters have been demanding from the government to allow production of vannamei to increase their export earnings since 2011, the Managing Director, Mashud Fish Proc. & Ice Complex Ltd said.

But government did not allow us due to lack of required infrastructures and bio-security measures, he said.

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