November 5, 2009

Frozen foods export to Russia has resumed recently as the country gave a go-ahead to four local processors for shipping shrimp to its territory, industry insiders said.

They said reopening of export, based on quality parameters of Russian authorities, has opened up scope for Bangladesh's frozen foods to diversify markets and reduce dependence mainly on EU and the US.

Fresh Foods along with Bagerhat Sea Foods, Apex Foods and ARK Sea Foods got clearance to enter the Russian market based on an inspection report by a Russian veterinary team that had earlier visited Bangladesh's shrimp processing plants and looked into hygiene practices.

Until January, processors of frozen foods, the second biggest forex earners, were exporting to Russia. But exports came to a halt in January after Russia imposed a restriction on entry of Bangladesh's shrimp on safety ground.

The restriction led to a 55-percent slump in export to the country to US$14.78 million in fiscal year 2008-09 from US$32.95 million a year-ago.

The sanction forced Bangladesh to sign a bilateral understanding deal with Russia for facilitating frozen foods export to the country.

Officials of Department of Fisheries and other stakeholders said signing of the memorandum of understanding (MoU) would help open the market officially for Bangladesh's frozen foods.

Insiders said exports of Bangladesh frozen foods, majority of which are shrimp, are mainly dependent on the EU and the US markets, but any sanction by the authorities of these regions hurts the sector.

Leaders of Bangladesh Frozen Foods Exporters Association said exports to Russia would reduce dependence on EU markets and offer scope to explore other East Asian markets.