For a more paying seafood industry
Saturday, 22 November 2008
M.H. Bari
The status of seafood, a non traditional item until independence has undergone a sea change. In fiscal year (FY) 1972-73 seafood items worth US$ 3.06 million were exported. It rose to $515.32 million in FY 2006-2007. With the introduction scientific methods of culture for shrimp and fishes, it is expected that production will increase manifold in the near future. This indicates a bright future for Bangladesh seafood in the international market.
Already, the second largest export sector in Bangladesh, the seafood industry, lacks proper literature and export guides. The international buyers do not get the needed information about Bangladesh seafood products.
The Bangladesh seafood industry is passing through a critical juncture with the US market slowing down and the EU putting non-tariff barriers. Strongly enough, Bangladesh is showing no interest to find new markets, although its seafood industry, strained by global recession, is facing stiff competition.
The government and its relevant departments need to wake up to energise the potential seafood industry. Bangladesh needs to increase productivity to be competitive. For the augmentation of productivity, there is no alternative to scientific shrimp culture. Shortage of skilled manpower and efficient management keeps Bangladesh behind its competitors, in terms of per hectare shrimp production.
Lacking their own source of raw materials, the entrepreneurs connected with seafood industry of Bangladesh has to depend on culturists or shrimp traders for their supply. For this they have a limited or no control over the quality of the raw materials. It may be a good idea for the government to allot each seafood industry a minimum of 200 acres of khas land for semi-intensive shrimp culture, to ease the problem of scarcity of raw materials. The government could set up a "Chingree (Shrimp) Board" for promoting shrimp culture in the country.
Complaints from overseas customers regarding blending sizes, short weight, and product freshness need to be swiftly addressed. The country needs to introduce seal of quality to ensure strict adherence to sanitary, environmental, social and human rights standards in order to get a quarter access for the Bangladeshi items to the world shrimp market. Product standardisation would eliminate the possibility of facing sanctions from buyers because of pathogens in shrimp. It would help the industry live up to internationally acceptable environmental, social and human rights standards.
Lack of modern technology prevents the Bangladeshi seafood exporters from diversifying their products. This deprives them of much higher potential earnings from the exports. The value addition of their products is much less compared to the diversified products exported by other countries using modern processing facilities and technology.
Globally speaking, Bangladesh, with around 4.0 per cent share in the international markets, remains a small producer of seafood. Hence, the produces in Bangladesh are badly affected by the price fluctuations of shrimps, from time to time. The world market, at times witnesses sharp fluctuations up to 30-40 per cent. Shrimp prices in the international market fell drastically in recent years. For example, the block size 16/20 of Bangladesh, sold for $5.60 or 5.70 per pound last year, now fetches $4.10 or 4.20 per pound. Though food prices in the world market increased, but shrimp prices fell. As the Bangladesh seafood exporters do not have proper pricing strategy to face the erratic market, they incur heavy losses.
International-marketing activities should be properly coordinated for competitive advantage. For competitive advantage, Bangladesh seafood industry should use methods followed by other countries, for standardisation. Other strategies should include branding, product positioning, service improvement of service standards, warranties, and advertising theme, through coordination.
Bangladesh needs to bring in marketing know-how and skills learning from the market entry strategy adopted by more successful nations. It needs to focus on customer and market information to remain abreast with shifts in buyer purchasing patterns, recent trends in technology, lifestyle changes, successful new product or feature introductions, new promotion ideas, and early market signals by competitors.
Sequencing of marketing programmes by other countries should be of interest to reap the benefits by creating organisational mechanisms to push product lines overcoming resistance to change in importing countries. Bangladesh also needs to manage relationships with important multinational customers, often called international account management.
Limited to the European Union (EU), USA and Japan, the Bangladesh seafood export market is shrinking. Exports to Japan is falling due to quality problems. The US market is going slowing down. The BFFEA (Bangladesh Frozen Foods Exporters Association), in collaboration with Export Promotion Bureau (EPB), could make serious efforts to widen and otherwise shrinking market and also to find new markets.
The government could set up a "National Task Force" to oversee the seafood export business. Qualified and experienced people in the trade could be included in such a task force.
(The writer, once associated with the seafood industries of Bangladesh for a quarter century, is currently working for Global Marketing of Seafood from Bangladesh and can be reached at e-mail at ramim1994@yahoo.-com or bari1963@dekko.net.bd)
The status of seafood, a non traditional item until independence has undergone a sea change. In fiscal year (FY) 1972-73 seafood items worth US$ 3.06 million were exported. It rose to $515.32 million in FY 2006-2007. With the introduction scientific methods of culture for shrimp and fishes, it is expected that production will increase manifold in the near future. This indicates a bright future for Bangladesh seafood in the international market.
Already, the second largest export sector in Bangladesh, the seafood industry, lacks proper literature and export guides. The international buyers do not get the needed information about Bangladesh seafood products.
The Bangladesh seafood industry is passing through a critical juncture with the US market slowing down and the EU putting non-tariff barriers. Strongly enough, Bangladesh is showing no interest to find new markets, although its seafood industry, strained by global recession, is facing stiff competition.
The government and its relevant departments need to wake up to energise the potential seafood industry. Bangladesh needs to increase productivity to be competitive. For the augmentation of productivity, there is no alternative to scientific shrimp culture. Shortage of skilled manpower and efficient management keeps Bangladesh behind its competitors, in terms of per hectare shrimp production.
Lacking their own source of raw materials, the entrepreneurs connected with seafood industry of Bangladesh has to depend on culturists or shrimp traders for their supply. For this they have a limited or no control over the quality of the raw materials. It may be a good idea for the government to allot each seafood industry a minimum of 200 acres of khas land for semi-intensive shrimp culture, to ease the problem of scarcity of raw materials. The government could set up a "Chingree (Shrimp) Board" for promoting shrimp culture in the country.
Complaints from overseas customers regarding blending sizes, short weight, and product freshness need to be swiftly addressed. The country needs to introduce seal of quality to ensure strict adherence to sanitary, environmental, social and human rights standards in order to get a quarter access for the Bangladeshi items to the world shrimp market. Product standardisation would eliminate the possibility of facing sanctions from buyers because of pathogens in shrimp. It would help the industry live up to internationally acceptable environmental, social and human rights standards.
Lack of modern technology prevents the Bangladeshi seafood exporters from diversifying their products. This deprives them of much higher potential earnings from the exports. The value addition of their products is much less compared to the diversified products exported by other countries using modern processing facilities and technology.
Globally speaking, Bangladesh, with around 4.0 per cent share in the international markets, remains a small producer of seafood. Hence, the produces in Bangladesh are badly affected by the price fluctuations of shrimps, from time to time. The world market, at times witnesses sharp fluctuations up to 30-40 per cent. Shrimp prices in the international market fell drastically in recent years. For example, the block size 16/20 of Bangladesh, sold for $5.60 or 5.70 per pound last year, now fetches $4.10 or 4.20 per pound. Though food prices in the world market increased, but shrimp prices fell. As the Bangladesh seafood exporters do not have proper pricing strategy to face the erratic market, they incur heavy losses.
International-marketing activities should be properly coordinated for competitive advantage. For competitive advantage, Bangladesh seafood industry should use methods followed by other countries, for standardisation. Other strategies should include branding, product positioning, service improvement of service standards, warranties, and advertising theme, through coordination.
Bangladesh needs to bring in marketing know-how and skills learning from the market entry strategy adopted by more successful nations. It needs to focus on customer and market information to remain abreast with shifts in buyer purchasing patterns, recent trends in technology, lifestyle changes, successful new product or feature introductions, new promotion ideas, and early market signals by competitors.
Sequencing of marketing programmes by other countries should be of interest to reap the benefits by creating organisational mechanisms to push product lines overcoming resistance to change in importing countries. Bangladesh also needs to manage relationships with important multinational customers, often called international account management.
Limited to the European Union (EU), USA and Japan, the Bangladesh seafood export market is shrinking. Exports to Japan is falling due to quality problems. The US market is going slowing down. The BFFEA (Bangladesh Frozen Foods Exporters Association), in collaboration with Export Promotion Bureau (EPB), could make serious efforts to widen and otherwise shrinking market and also to find new markets.
The government could set up a "National Task Force" to oversee the seafood export business. Qualified and experienced people in the trade could be included in such a task force.
(The writer, once associated with the seafood industries of Bangladesh for a quarter century, is currently working for Global Marketing of Seafood from Bangladesh and can be reached at e-mail at ramim1994@yahoo.-com or bari1963@dekko.net.bd)