Frozen foods export may miss target this FY

The target of frozen foods export might not be fulfilled this fiscal year (FY), 2014-15, as local exporters are getting very poor number of orders of black tiger shrimp from foreign buyers, said the industry insiders.
They said the exporters are facing trouble due to price fall of black tiger since October last. It happened mainly because of continuous devaluation of euro and ruble against US dollar as well as good supply of vennamie in the international market.
"The season of black tiger will start from March. But we are getting only five to ten per cent of its usual orders from the buyers," Bangladesh Frozen Foods Exporters Association (BFFEA) president Md Amin Ullah told the FE.
"Generally we get a good number of orders from the buyers. But this year the scenario has changed. It is an impact of devaluation of currencies, like - euro and ruble, against dollar, and good supply of vennamie in the international market."
This year the production of vennamie is better, as its cultivation has overcome the effect caused by the Early Mortality Syndrome (EMS) in 2013-14. The production of vennamie is around 2.5 million tonnes across the globe.
Its production in China, India, Vietnam, Thailand, Indonesia and Ecuador are far better than that of the previous year, according to different websites.  
At this moment around 11,000 tonnes of shrimps, including black tiger and fresh water prawn, and worth Tk 15 billion, are stockpiled in several fish processing plants across the country due to sloth in export.
Mr Amin said: "Not a single container of frozen food went to Russia in December and January. Besides, export to the US and the European Union is also sluggish."
Lockpur Group of Industries Deputy Managing Director Khan Habibur Rahman also said the new season of black tiger shrimp will start form March. But the local exporters are not getting adequate orders from the buyers, who are getting vennamie at lower rates in the international market.
"Buyers are seeking information from us. But when we are offering our prices, they are not replying."
He said the price of black tiger dropped significantly in last four and half months. The price of 16-20 count black tiger is now US$ 6.00 per pound, which was above $ 9.00.
"We are getting poor orders from the European and Russian buyers. They are buying dollar at a high rate during the last couple of months that has increased their expenditure."
He expressed apprehension that the price of black tiger might not go up in the upcoming days, if the devaluation of euro and ruble against dollar continues.
Besides, the BFFEA president said the exporters are incurring loss worth Tk 1.00 billion per day amid the recent political violence.
If transport disruption continues in the upcoming months, they will be more affected, as the black tiger season will continue from March to July, he added.
Bangladesh exported frozen foods worth $ 397.60 million in July-January of this fiscal, compared with $ 418.74 million in the same period of the previous fiscal, the Export Promotion Bureau (EPB) data showed.
The government has set a target of exporting frozen foods worth $ 731.08 million this fiscal.
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