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Shrimp, one of the major frozen fish items that Bangladesh exports to the international market, is currently affected by the prolonged global economic slowdown.
According to the Export Promotion Bureau (EPB), shrimp exports have declined by 20.37 percent in the first half (H1) of the 2023-24 fiscal year. On the other hand, the revenue earned from shrimp exports fell by 27.85 percent in the recently concluded financial year.
Shrimp prices have also dropped by 25 percent in 2023, as consumers worldwide have reduced their shrimp demand due to inflation, according to the exporters.
Data shows that shrimp exports fell to $145.91 million from $183.23 million in the corresponding year. The target for the mentioned period was set at $159.31 million from July to December in the fiscal year 2024.
Frozen shrimps are the staple export item from the Khulna, Satkhira, and Bagerhat regions of southern Bangladesh, accounting for about 90 percent of the country’s total shrimp exports.
Industry insiders think that this potentially lucrative sector is neglected by the government. There is no policy support and financial packages for native goods exporters.
“The main reason is the increase in prices in the local and international markets, thus revenue has fallen by 27.85 percent,” said Md Amin Ullah, president of the Bangladesh Frozen Foods Exporters Association (BFFEA).
He also mentioned that the recovery in shipments started in 2021 as demand for shrimp and its prices shot up in the main markets, such as Europe, owing to supply disruptions caused by Covid-19.
“There were media reports of empty shelves in stores due to the supply disruption, and our exports grew under such a situation,” Md Amin Ullah added.
Frozen and live fish exports decreased by 12.68 percent to $215 million, which was $245 million in the same corresponding year.
Shrimp production plays a vital role in the Khulna region’s economy, but the industry has faced many challenges in recent years, such as the global recession resulting in a drastic fall in shrimp prices and a reputation loss due to shrimp adulteration by dishonest suppliers.
However, in the financial year 2022-23, the export income from Khulna declined by US $87.8 million, as only 19,904 tonnes of shrimp, worth US $219 million, were exported from the region – a decline of 28 percent in value terms.
There has been a steady decline in shrimp exports since 2014, other than in the fiscal year 2021-22, following the relaxation of Covid-19 lockdowns in EU countries.
Exporters fetched $532.9 million by shipping frozen and live fish abroad in FY 2021-22, posting growth of 12 percent year-on-year from $477 million the previous year, according to data from the EPB of Bangladesh.
Shrimp accounts for most of the total exports of the fisheries sector. According to the data from the ministry, 74,042 tonnes of frozen and live fish were exported in the 2021-2022 financial year, of which 30,571 tonnes were shrimp.
In other words, out of the total export earnings of $532.94 million in FY21-22, shrimp alone earned $407.25 million. As a result, the EPB had set a $500 million export target for frozen shrimp alone. However, by the end of the financial year 2022-23, shrimp exports were 39 percent behind the EPB’s target – a drop of 26.27 percent from the previous year.
Messenger/Disha
