Frozen food exports to Russia resume

Frozen foods export to Russia has resumed recently as the country gave a go-ahead to four local processors for shipping shrimp to its territory, industry insiders said.

They said reopening of export, based on quality parameters of Russian authorities, has opened up scope for Bangladesh's frozen foods to diversify markets and reduce dependence mainly on EU and the US.

“It will enhance our exports and enable the sector to sustain. Opening of the Russian market will also increase our bargaining power with buyers,” said Masudur Rahman, director of Fresh Foods Ltd, one of the four companies that have got permission to open export to Russia.

Fresh Foods along with Bagerhat Sea Foods, Apex Foods and ARK Sea Foods got clearance to enter the Russian market based on an inspection report by a Russian veterinary team that had earlier visited Bangladesh's shrimp processing plants and looked into hygiene practices.

“We are extremely happy. We have started shipping consignments to Russia,” said Ashim Kumar Barua, director of Apex Foods Ltd, one of the new entrants to Russian market.

Until January, processors of frozen foods, the second biggest forex earners, were exporting to Russia.

But exports came to a halt in January after Russia imposed a restriction on entry of Bangladesh's shrimp on safety ground.

The restriction led to a 55 percent slump in export to the country to $14.78 million in fiscal year 2008-09 from $32.95 million a year ago.

The sanction forced Bangladesh to sign a bilateral understanding deal with Russia for facilitating frozen foods export to the country.

Officials of Department of Fisheries and other stakeholders said signing of the memorandum of understanding (MoU) would help open the market officially for Bangladesh's frozen foods.

“The MoU between the governments will further facilitate entrance of Bangladesh's shrimp. Entry to Russia will contribute to market diversification also,” said Syed Mahmudul Huq, chairman of Bangladesh Shrimp and Fish Foundation.

Insiders said exports of Bangladesh frozen foods, majority of which are shrimp, are mainly dependent on the European Union and the US markets. But any sanction by the authorities of these regions hurts the sector that offers jobs directly to more than 1 million people.

Leaders of Bangladesh Frozen Foods Exporters Association said exports to Russia would reduce dependence on EU markets and offer scope to explore other East Asian markets.

sohel@thedailystar.net