July 4, 2012

 

Bangladesh shrimp exporters in dilemma due to price fall

 

 

Due to price drop in the international market especially in the EU, Bangladesh shrimp exporters are in dire difficulty, sources said.

 

"The price of one pound black tiger shrimp is now maximum US$4.60. It was sold US$5.50-6 one month back. The price of one pound black tiger contains 16-20 pieces," Lockpur Group senior executive director Khan Habibur Rahman told the FE.

 

Already, some 10-12 foreign buyers told us for renegotiation of their consignments. And after the re-fixation of black tiger price, we have to count a big amount of loss." Rahman said.

 

"More than 80% of the total shrimp exports go to the EU. To reduce dependency on one market we have to look for new markets and the government has to come forward to save the industry," He said.

 

Exporters might be able to export shrimp worth US$610 million while the target was US$725 million, according to the Bangladesh Frozen Food Exporters Association (BFFEA) sources.

 

Shrimp export during July-May period of the current fiscal year (FY 2011-12) registered a 12.13% negative growth against the target of US$549 million export, according to the Export Promotion Bureau data.

 

BFFEA vice-president Maksudur Rahman said, "The main problem is that one pound of black tiger that contains 16-20 pieces has lost the demand in the EU countries."

 

"On the other hand, EU and US buyers are very much interested in vannamei shrimp due to financial crisis whereas Bangladeshi exporters cannot send those as there is government ban on it."

 

He said that the foreign buyers are demanding to reduce the price of black tiger to the level of vannamei. This is not possible as the production cost of black tiger is much higher than vannamei.

 

According to a website report, over 36 countries of the world including India, Vietnam and Thailand in the meantime have started production of the vannamei species and are earning an increasing amount of foreign currency through shipment.

 

BFFEA vice president Rahman said, "We can produce only 220 kilogrammes of black tiger shrimp in one hectare of land whereas we can produce 8-10 tonnes of lower cost vannamei shrimp in the same land."

 

He also said, "The government has to allow vannamei shrimp cultivation. There is no other option for the local exporters to survive in the global market."