Shrimp exports bounce back

Shrimp exports picked up in the first quarter of fiscal 2016-17 after remaining on the downturn over the past two fiscal years thanks to lower production in the major producing countries, said industry operators.

Export earnings from shrimp rose 14 percent year-on-year to $124 million in the July-September period of the fiscal year, according to data from the Export Promotion Bureau.

“We have been seeing higher demand for black tiger shrimps in the last couple of months,” said Kazi Belayet Hossain, managing director of Sobi Fish Processing.

The demand for black tiger, locally known as Bagda, has particularly increased in the EU and the US, said Hossain, also a former president of the Bangladesh Frozen Foods Exporters Association.

In its recent market report on shrimp, Globefish, a unit of Food and Agriculture Organisation, said production was lower in the major shrimp-producing countries, particularly China, India and Vietnam.

Exports from China and India declined in the first quarter of 2016, the report said, adding that Chinese imports rose in the January-February period.

“Chinese traders have been active in Southeast Asia, buying directly from farms at strong prices. Meanwhile, raw material availability for export to traditional developed markets is low,” Globefish said.

The increased demand for shipment has enabled shrimp farmers to get better prices this year, said a manager of a depot at Rupsha, a shrimp-processing belt near Khulna city.

The domestic demand for shrimp is also growing in many producing countries, according to Globefish.

“The black tiger shrimp production in Bangladesh also found a growing local market, as exports suffered during the last two years with falling prices in the international market,” it said.

The availability of shrimp is not encouraging, said Md Golam Mostafa, senior vice-president of BFFEA. “There is a huge demand, but we do not have enough production.”

Bangladesh grows shrimp on 2.75 lakh hectares in its saline-prone southwestern coastal region, shipping over 45,000 tonnes a year, according to the Department of Fisheries.

Some 8.33 lakh farmers are engaged in producing briny water shrimp and prawn, harvesting 400-500 kilograms per hectare in each production cycle.

This is lower than in other shrimp producing countries in Asia, according to industry operators.

“It appears that production here is lower this year than in the previous year,” Hossain said, adding that the current prices of shrimp might persist until December because of the lower production outlook.

The price of shrimp now hovers around $6.5 per pound (16-20 pieces) from $5.5 a year earlier, he said.

The production forecast for farmed shrimp in Asia remains less promising for 2016 due to the ongoing disease problem in China and in some parts of Southeast Asia along with draught and a delayed monsoon in the region, Globefish said.

“Supplies in the coming months are likely to be lower than earlier predicted,” it said.

Globefish, however, said China, which is seeing rising demand, is likely continue to influence the global market and prices if its domestic production does not improve. 

The market will also depend on the supply situation in India and Vietnam, which currently does not have a promising forecast for the coming months.

“Thus, with low production and possible demand growth in Asia, the global shrimp market could see rising prices for the rest of 2016,” it added.