Shrimp exports grow, but so do worries

[Bilal9]

According to data from the Export Promotion Bureau (EPB), foreign exchange earnings from shrimp exports in the last six months were $268.95 million, a jump from the $194.58 million registered in the same period of FY2020-21​

Infographic: TBS

Infographic: TBS

Despite the spectre of the Omicron hanging over their heads, shrimp exporters have been all smiles in the first six months of the fiscal year 2021-22 (July-December) as the value of exports have grown by 38.23% compared to the same period last year.

According to data from the Export Promotion Bureau (EPB), foreign exchange earnings from shrimp exports in the last six months were $268.95 million, a jump from the $194.58 million registered in the same period of FY2020-21.

Riding on high prices of Bagda prawn, export figures in the first six months suggest that shrimp exporters can beat last year's haul of $329m and perhaps even secure their highest earnings in a while after many years of consistent decline.

Crimson Rosella Seafood Ltd Managing Director Md Delowar Hossain told The Business Standard that after the emergence of Covid-19, exports of Bagda prawn had stopped, with low prices deterring farmers. In 2021, however, the business came roaring back and exporters enjoyed high sales.

He, however, cautioned that the spread of Omicron could undo all the good work. "Preparations for the new season are underway. If any major lockdowns happen, then all shrimp traders and farmers will incur losses," he said.

Kazi Belayet Hossain, president of the BFFEA, told TBS that it cannot be said that production was much higher than other years, but good prices for Bagda prawn (Black Tiger prawn) meant that export value was higher.

He also said that if restaurants in Europe begin closing again due to the Omicron variant, exports will be affected again, adding that they had already begun feeling the impact of the virus. Kazi Belayat urged the government to ensure that the global markets for shrimps are not closed off.

Sources at the BFFEA said 85% of the shrimp exported from Bangladesh goes to European countries, while 15% goes to America, Japan and other countries.

Besides shrimp, live fish exports have also grown by 34%, earning $4.41m. Frozen fish exports, however, have taken a hit, falling from $66.33m in the first six months of the FY2020-21 to $53.05m compared to the same period this year.

According to the EPB, Bangladesh exported a total of 41,236 metric tonnes of shrimp worth $455m in the FY2013-14. Since then, its exports began to shrink, along with production.

According to EPB data, Bangladesh's share in the world shrimp market has decreased from 4% to 2% in the five years till 2018-19. During this time, shrimp exports have fallen by 33% and production has shrunk by 28.5%.

Changing tastes, unaltered methods

Exporters say that the commercial production of Vannamei shrimp (White leg shrimp) has increased its presence in world markets, with India, Vietnam and Thailand, among others, becoming its suppliers.

Bangladesh, on the other hand, has yet to tap into this variety, preferring instead to stick to the Galda and Bagda prawns.

Vannamei shrimp, however, now accounts for 77% of the world's total shrimp exports, with Bagda capturing a comparatively negligible 11%. At present, the price of Bagda prawn is also $2 higher per pound than that of the Vannamei shrimp.

Kazi Belayet Hossain told The Business Standard that this hybrid variety of White Leg shrimp was high yielding and also cheaper, so many countries had begun to benefit from its production. "We are working on how to quickly move to commercial production of Vannamei shrimp," he said, adding that it took 20 years of lobbying before experimental cultivation of the variety was allowed.