Bangladesh shrimp export earnings have dropped in the first quarter of current fiscal year.

Shrimp accounts for most of the total exports of the fisheries sector. According to the data from the ministry, 74,042 tons of frozen and live fish were exported in the last financial year (FY20-21), of which 30,571 tons were shrimp. Shrimp sector alone earned $407.25 million from $532.94 million.

Now, considering the drop in purchase orders, overall export earnings from the shrimp sector may decline about 35% by the end of fiscal 2022-23.

To share his experience on the current situation Mr. Ullah went on saying, “Whereas we would previously get $200k for shipping a single container to the EU, we are now getting $150K for the same volume. The reduced demand comes down to the fact that people in the EU are unwilling to purchase luxury items such as shrimp considering the recent economic shocks.

Mr. S Humayun Kabir, chairman of Amam Seafood Industry Ltd, said although the sector’s performance in the first quarter of this fiscal year shows that earnings from shrimp exports have fallen by 18 per cent, overall exports have actually declined by at least 30 per cent.

He then reasoned that fluctuations in the US dollar exchange rate have given them a bit of relief as exporters are benefitting from the high dollar price against Bangladeshi taka.

About getting lower orders, he said the whole of Europe is now witnessing a silent financial crisis that has greatly contributed to the fall in export orders.

Besides, importers are offering at least 25-30% lower prices compared to last year, he added.

Kabir went on to say that local shrimp farmers are failing to secure adequate returns due to the low prices being offered in foreign markets, which will discourage them to keep continuing the business.

“The situation is so dire that many buyers are renegotiating the prices of previously placed orders and as such, stocks are piling up at almost every processing factory,” said Kabir, who is also vice-president of the BFFEA.

The volume of shrimp being exported from Khulna, a major producing region, declined by about 16% to 7,027 tons in the July-September period of the ongoing fiscal year, according to the BFFEA.

Mr. Shyamal Das, managing director of MU Seafood Ltd, said the demand for locally produced shrimp is declining abroad for its higher price compared to the cheaper Vannamei produced in other shrimp producing countries.

“It is a very bad situation as prices are falling fast while sales are down,” he said.

A kilogram of headless black tiger shrimp is now selling for $12 while it was $14 as recently as three months ago.

According to Mr. Das, the demand for shrimp in the EU has declined by more than 40%.

“As our black tiger shrimp is usually consumed as a luxury food in restaurants and hotels, EU importers are pushing back their shipment orders in fear of a recession,” he said.

we “Seafood Network, Bangladesh”, have accumulated country wise major shrimp export values for FY 22-23 of Q1, from the export promotion bureau. Now, let’s take a look into it.

Country names in alphabetic order and values are in USD.

Shrimp sector ensures the livelihood of more than 800,000 farmers, who collectively cultivate shrimp on 2,75,000 hectares of land in coastal areas of the southwest region of Bangladesh, according to the Department of Fisheries.