Prices of Bangladeshi shrimp have declined by an estimated 24 per cent recently due to the impact of the long-running Russia-Ukraine war on international markets, according to exporters.
They analysed that the demand for other fishes, including shrimp, has decreased significantly due to the ongoing global economic recession.
Factors like lack of supply of the required volume of fish, product varieties and creation of new markets have long acted as deterrents to this decrease in export volume and income.
Bangladesh earned $422.28 million from frozen and live fish export in fiscal year (FY) 2022-23 against $532.94 million in FY22.
On the other hand, export earnings from frozen shrimp, which is the key item of the sector, were $300.26 million in FY23 and $407.25 million in FY22.
This downtrend persists in FY24 as the sector earned $29.40 million in July 2023 against $36.03 in July 2022, posting 18-per cent lower earnings from fish items.
The same thing happened in shrimp export as earnings dropped over 33 per cent in the first month of FY24.
It could earn $20.55 million in July 2023 against $30.85 million in July 2022, according to data available with the Export Promotion Bureau.
In a recent review meeting, organised by commerce ministry, the Bangladesh Frozen Foods Exporters Association (BFFEA) highlighted different problems regarding production and export earnings.
No significant steps have so far been taken to increase shrimp production.
In most cases here, shrimp farming is currently done in the traditional way, so production is only 300-400 kg per hectare, which is the lowest in the world.
However, if shrimp farming is done scientifically, the production will be 3.0-4.0 tonnes per hectare, which has not been possible to expand so far.
Unlike leading exporters China and Vietnam, Bangladesh is still unable to produce higher value-added frozen shrimp products, which are in great demand abroad.
The machinery required to produce such products needs a lot of investment, according to exporters who spoke about skilled workers required for this job.
If higher value-added products could be exported, they observed, it was possible to earn five times more from this sector than now.
Some 70 per cent of frozen fish units make products through an 'individual quick freezing' process while 30 per cent prepare value-added or ready-to-cook items.
But now the demand for ready-to-eat fish is increasing among buyers.
BFFEA president Kazi Belayet said exports have been decreasing since 2015 for a shortage of required fish.
"But exports have further decreased due to the Russia-Ukraine war, as the main buyers of our products are European countries," he added.
Export earnings were 20-22 per cent less than the target every year, but in last fiscal year, it decreased to about 40 per cent, said Mr Belayet.
"We're also facing various challenges such as not being able to manufacture higher-value-added products due to a lack of necessary machinery and skilled workers."
"In this case," said Mr Belayet, "the government's cooperation is needed for this sector."
The government has made 100 economic zones for traders. It can also make such zones for fish exporters.
If done, the trade leader said it would woo domestic investment as well as foreign investment, produce higher value-added items and create skilled workers.
When asked, Mr Belayet said if the production of vannamei shrimp starts completely, the shortage of raw materials will be met significantly and export earnings will increase again.
The Department of Fisheries has given permission for commercial production of white-leg shrimp in Bangladesh this March following a demand from shrimp exporters.
The government has also allowed for trial production of vannamei shrimp fry to meet the demand for quality post-larvae of the fish for cultivators.
More than 60 countries, including China, India, Vietnam, Thailand, Indonesia, Malaysia, Ecuador and Mexico, are producing vannamei, meeting about 80 per cent of the total shrimp demand in the world.
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