March 22, 2007

Pakistan's seafood prices fall sharply after EU imposes ban

Pakistan's seafood export prices have declined sharply days after the EU delisted Pakistani exporters.

Industry officials said prices of Pakistani seafood in the international market have declined by almost 20 percent, and may fall further.

Reaction from other foreign markets is swift when a ban on any country's products is enacted, said Sardar Hanif Khan, Chairman, Pakistan Seafood Industry Association (PSIA). International buyers exploit the weakness and make deals at prices they want, he added.

Importers from other countries are canceling deals with Pakistani exporters in the aftermath of EU's ban, he added.

The EU delisted all 11 seafood processing factories due to the poor quality of processing, making it the second time in two years Pakistan's seafood has been banned by the EU.

The EU decision came after more than a month its team visited Karachi fish harbour  to check on seafood quality and hygiene.

Warnings were issued to Pakistani authorities as early as 2005.

Exporters say they expect the worst during the June to September period, when the international market normally slows down due to breeding season of seafood and the industry may be hit badly.

Shrimp exports from Pakistan have been effectively halted as the EU was the only major buyer up until last week.