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Facilitating frozen food exports

Tuesday, 18 March 2014


Of all the export-oriented sectors, frozen food (predominantly shrimps) is perhaps the only one to suffer setbacks due to restrictions/embargoes slapped, in one form or another, on its import by the importing countries. Meeting compliance requirements of the European Union (EU) and the US - namely the EU regulations and HACCP (hazard analysis at critical control points) respectively - had been a tormenting experience throughout the nineties. However, the country's exporters, despite severe constraints, were able to come to terms with the required standards not just in terms of attaining the desired quality but also fulfilling an elaborate, step-by-step processing requirement, from harvesting to shipment.
Those were the difficult days for the sector that almost cost its survival. But the difficulty this sector is currently faced with is altogether different in that it is due to a change in the consumption pattern in the major destinations of its exports. A fall in the market share of Bangladeshi shrimps in the recession-struck West is caused by the fact that the consumers there are opting for cheaper varieties that are exported from Thailand, India, Vietnam and Mexico. Instead of the prime variety of Bangladeshi Black Tiger, mass consumers are going for the far cheaper white shrimp (Vennfmi variety), exported mostly from Thailand and Vietnam.
Added to this is the prevailing embargo on export of shrimps to the Russian Federation. The Russian market for shrimp is a highly prospective one, and although exports in recent times were to the tune of around 7.0 per cent of the country's total export of shrimps, the potential for growth is perhaps more than other major shrimp export destinations. There is reportedly a stimulus in selling to the Russian buyers in terms of price and payment mechanism. The Russian buyers do reportedly offer for Bangladeshi shrimps 10 to 20 cent higher price than those of the EU and the US. Oftentimes, the contract between the buyer and the seller includes 30 per cent advance payments prior to shipments, a respite for the exporter from high rates of bank interest charges. But the problem that has virtually stalled exports to Russia is the stringent phytosanitary requirement in terms of microbiological standard, which is considered exceptional if compared to those in the EU, US, Japan and other export markets.
Compliance with the requirement applied to import of shrimps into Russia appears to be a difficult one. Industry insiders say that most importing countries follow the ICMSF (International Commission for Microbiological Standards for Food) standards relating to bacterial load while importing food items. But Russia follows its own standard in this respect. Reports published in this newspaper say that as per the ICMSF standards, 1.0 million CFUs (Colony Forming Unit) are allowed in 20 grams of fish for human consumption. But Russia allows 0.1 million CFUs in 20 grams as per its own (cold-water region) standard. Whatever has come up in the newspapers about the Russian compliance requirements is but one side of the picture. It is thus a matter of great importance that the government and the respective association put their heads together in an attempt to find a solution to the problem.