May 14, 2010

Bangladeshi shrimp exports face setbacks due to EU mandatory testing

The EU authority is now requiring mandatory testing of at least 20% of each sweet-water prawn container in Bangladesh as per the recommendations of the Food and Veterinary Office (FVO).

Syed Mahmudul Huq, chairman of Bangladesh Shrimp and Fish Foundation, said "The EU authority has issued a circular at the end of April to the EU members, as the FVO mission did not find adequate lab facilities in Bangladesh."

He said, "The EU authority is trying to create a legal framework in this regard, and the provision might be imposed in the next fiscal (year). Then, Bangladesh could be the last choice of the importers, as the proposed testing would be a time consuming process."

Maksudur Rahman, vice-president of Bangladesh Frozen Foods Exporters Association, said, "Normally the entire process of sweet-water prawn's shipment to cold storages takes one month. But after imposing the provision it will take 15-30 days more."

"Earlier prawn testing was not mandatory, and the EU authority tested the shipments on a random basis. For this reason, it can create some hazards, like increasing bank interest and storage time, which would ultimately make the entire export process uncertain." One container has 14-18 tonnes of sweet-water prawns sold at US$6-US$6.5 per pound. Bangladesh annually exports a total of 45,000 tonnes of sweet-water prawns and black tigers worth BDT35 billion (US$500 million), and at least 40% of shrimp goes to the EU.

He said, "Our sweet-water prawns have a great demand in the EU countries because of their taste. We are hopeful that we won't lose our market. But if the EU countries impose this mandatory checking system, we might have to sell our products at cheaper rates."

The export of frozen food, mainly shrimp, slumped by more than 18% than its target during the July-February period of 2009-10.

"The second largest export earning sector will face difficulty to fetch the targeted US$468 million in the fiscal (year), and the negative growth might reach 20-25%," he added.