Frozen food export to US market records 60pc decline
Thursday, 4 October 2007
Doulot Akter Mala
Export of country's frozen foods to the US market has dropped by nearly 60 per cent recently.
Exporters claimed that the overall export showed a sluggish trend, specially to the US market, as they were facing stiff competition from international suppliers like Vietnam, Thailand and Indonesia.
The export of frozen foods also showed a downward trend in its largest exporting destination, the European Union (EU).
Exporters feared that they might have to incur losses of about Tk 5.0 billion in the current fiscal due to such sluggish trend in export.
Last fiscal, the sector fetched US$ 175 million by exporting to the US market alone.
The exporters claimed that the world economic fallout, the increase in fuel oil prices and supply of shrimp and frozen foods by other competing countries at lower prices have hindered the frozen foods export in the peak season.
"Generally, we export major portion of our products during this season ahead of Christmas and New Year celebrations. But this year, surprisingly, we are noticing a significant decline in export," said Touhidur Rahman, senior vice president of the Bangladesh Frozen Foods Exporters Association (BFFEA).
If such sluggish trend continued, the exporters will not be able to achieve their target set for the current fiscal, he said.
"After 9/11, we did not see any substantial decline in export orders of our products," he said.
The frozen fish products worth Tk 3.0 billion is now stuck up in the port as there is no demand from the buyers end.
"I have visited the US market recently and found the importers were facing problems with the imported products in their market," Rahman said, who is also owner of an exporting company---Fresh Foods.
The overall sale of such products dropped by 60 per cent in the US market.
"In fiscal 2006-07, I exported frozen foods worth Tk 1.96 billion in US and EU markets," he said.
He, however, feared monetary loss in this fiscal due to sluggish trend in export.
Asked whether the recent petitions lodged in the USA for withdrawal of GSP facility from the Bangladeshi products undermined the image of Bangladeshi goods, he said: "The petition, filed by a US NGO, is based on wrong information so it has no impact on our products."
"There is no involvement of child labour in our industry as the US NGO has blamed," he said.
This is nothing but propaganda by the international competitors to affect the booming sector, he said.
Rezaul Huq, a leading exporter of such foods, said: "our competitors from Vietnam, Thailand and Indonesia have been supplying hybrid quality of shrimps---Venami---at a lower price compared to black tiger shrimp supplied from Bangladesh."
"We are facing tough price competition in the international market as such variety is not available in the country and production cost of black tiger is much higher than that of Venami," he said.
Annual export of frozen fish from his company--- Modern Sea Foods--- accounts for nearly $150 million.
Around 20 consignments of his company are now piled up at the port for export.
"We are also facing problems to pay the farmers as their products are stuck up at the port," he said.
"Our value added products had been getting huge response in the US market, but during the last two months it showed a sluggish trend," he said.
Export of country's frozen foods to the US market has dropped by nearly 60 per cent recently.
Exporters claimed that the overall export showed a sluggish trend, specially to the US market, as they were facing stiff competition from international suppliers like Vietnam, Thailand and Indonesia.
The export of frozen foods also showed a downward trend in its largest exporting destination, the European Union (EU).
Exporters feared that they might have to incur losses of about Tk 5.0 billion in the current fiscal due to such sluggish trend in export.
Last fiscal, the sector fetched US$ 175 million by exporting to the US market alone.
The exporters claimed that the world economic fallout, the increase in fuel oil prices and supply of shrimp and frozen foods by other competing countries at lower prices have hindered the frozen foods export in the peak season.
"Generally, we export major portion of our products during this season ahead of Christmas and New Year celebrations. But this year, surprisingly, we are noticing a significant decline in export," said Touhidur Rahman, senior vice president of the Bangladesh Frozen Foods Exporters Association (BFFEA).
If such sluggish trend continued, the exporters will not be able to achieve their target set for the current fiscal, he said.
"After 9/11, we did not see any substantial decline in export orders of our products," he said.
The frozen fish products worth Tk 3.0 billion is now stuck up in the port as there is no demand from the buyers end.
"I have visited the US market recently and found the importers were facing problems with the imported products in their market," Rahman said, who is also owner of an exporting company---Fresh Foods.
The overall sale of such products dropped by 60 per cent in the US market.
"In fiscal 2006-07, I exported frozen foods worth Tk 1.96 billion in US and EU markets," he said.
He, however, feared monetary loss in this fiscal due to sluggish trend in export.
Asked whether the recent petitions lodged in the USA for withdrawal of GSP facility from the Bangladeshi products undermined the image of Bangladeshi goods, he said: "The petition, filed by a US NGO, is based on wrong information so it has no impact on our products."
"There is no involvement of child labour in our industry as the US NGO has blamed," he said.
This is nothing but propaganda by the international competitors to affect the booming sector, he said.
Rezaul Huq, a leading exporter of such foods, said: "our competitors from Vietnam, Thailand and Indonesia have been supplying hybrid quality of shrimps---Venami---at a lower price compared to black tiger shrimp supplied from Bangladesh."
"We are facing tough price competition in the international market as such variety is not available in the country and production cost of black tiger is much higher than that of Venami," he said.
Annual export of frozen fish from his company--- Modern Sea Foods--- accounts for nearly $150 million.
Around 20 consignments of his company are now piled up at the port for export.
"We are also facing problems to pay the farmers as their products are stuck up at the port," he said.
"Our value added products had been getting huge response in the US market, but during the last two months it showed a sluggish trend," he said.