Frozen shrimp exports showing signs of recovery

After declining for two consecutive years, frozen shrimp exports are beginning to recover from the brink.

Frozen shrimp exports returned to a positive trend in the outgoing fiscal year.

In the first three months of the current fiscal year (July–September), frozen shrimp exports grew by nearly 22 per cent.

However, by the end of October, covering four months, the growth had slowed to 10 per cent.

Several exporters said that during the Russia-Ukraine war, high inflation led to reduced demand for Bagda shrimp in the global market, while lower-priced Vannamei shrimp saw higher demand worldwide.

At that time, commercially viable high-yield Bagda shrimp farming had not yet begun in Bangladesh, resulting in lower frozen shrimp exports. However, last year, demand and exports of Bagda shrimp began to increase again.

Exporters further noted that while purchase orders remain strong, raw materials—particularly shrimp—are not being supplied in line with demand. Although small-scale Vannamei shrimp farming has started in the country, it is not yet being exported. As a result, it is unclear how sustainable the export growth will be in the future.

According to the Export Promotion Bureau (EPB), in the post-COVID fiscal year 2021-22, earnings from frozen shrimp exports increased by nearly 24 per cent, reaching $41 million. However, in the following year, exports plummeted due to the Russia-Ukraine war, falling to $30 million. In the 2023-24 fiscal year, exports further declined to around $25 million.

Nevertheless, thanks to increased purchase orders, exports rose by 19 per cent in the outgoing fiscal year, reaching $29.63 million.

In the first four months of the current fiscal year (July–October), $12 million worth of frozen shrimp has been exported. This represents an increase of nearly 10 per cent compared to the same period last year, when exports totaled $11 million.

In the 2022-23 fiscal year, the top five destinations for Bangladesh’s frozen shrimp, crab, and squid exports were the Netherlands, Belgium, the United Kingdom, Germany, and the United States. In the outgoing fiscal year, China emerged as the top destination, with exports worth $5.66 million. Other major destinations included the Netherlands ($4.75 million), the United Kingdom ($4.5 million), Belgium ($4 million), Germany ($2.96 million), and the United States ($2 million) for frozen shrimp, crab, and squid.

For a long time, exporters have been negotiating with the government for permission to cultivate Vannamei shrimp in the country. Initially, the Department of Fisheries did not encourage or grant permission, citing potential adverse effects on the environment. Finally, in September 2019, the government allowed experimental cultivation of this shrimp. However, the process was delayed due to the COVID-19 pandemic.

In 2021, experimental Vannamei shrimp farming began at the Lonapani Research Centre in Paikgachha Upazila, Khulna. The following year, eight institutions received experimental cultivation permits in the first phase, and later four more institutions were granted permission. Last year, various organisations started commercial production.

Currently, high-yield Vannamei shrimp are being farmed intensively at a farm in Cox’s Bazar. Salahuddin Ahmed, quality control officer at the company Seemark (BD), said that this year, their farm exported 75 tonnes of Vannamei shrimp to the United Kingdom in three batches.

Leaders of the Bangladesh Frozen Food Exporters’ Association (BFFEA) stated that currently, 50–60 small and medium-sized enterprises are cultivating Vannamei shrimp, and production is at a satisfactory level.

Shyamal Das, MD of MUC Foods, said, “Orders for Bagda shrimp are good. However, we are not receiving raw materials according to demand, so we cannot say whether export growth will be sustainable.” He added that production of Vannamei shrimp must be increased to make frozen shrimp exports sustainable.