After hitting a five-year low in the last fiscal year, Bangladesh shrimp export sector is showing signs of recovery, buoyed by renewed international demand. However, industry insiders warn that a persistent shortage of quality shrimp seed and raw materials could hamper long-term growth.
According to the Bangladesh Export Promotion Bureau (EPB), frozen and live fish exports, including shrimp, rose by 14.45% in the first eight months (July–February) of FY2024-25, reaching USD 316.2 million. Of this, shrimp exports alone surged by 17.06%, hitting USD 215.9 million. February marked a particularly strong month, with export growth of 23.25%. Bangladesh’s main export destinations are mostly UK and EU countries.
The upward trend has continued for six consecutive months, from September to February. Despite this, many processing plants in key hubs, Khulna and Chattogram remain closed due to a shortage of raw materials, financial constraints, and high operational costs.
Industry leaders state that the sector was severely disrupted during student protests in July–August last year. Yet, EPB data suggests that shrimp exports have been gradually increasing since the fall of the previous government.
Recently elected as the Senior Vice President of the Bangladesh Frozen Foods Exporters Association (BFFEA), Md. Tarikul Islam Zaher, Managing Director of Achia Sea Foods, said:
“We’re getting a significant volume of export orders, and global demand for shrimp has risen considerably. However, the raw material shortage poses a serious threat to sustainable growth.”
Zaher added that most shrimp producers are struggling due to multiple challenges, resulting in the shutdown of many processing factories. Of BFFEA’s 200 member companies, only about 25% are currently operational, while 75% have suspended activities.
Even in Khulna, where nearly 30 factories remain technically open, only 10–12 are functioning steadily. The situation in Chattogram is reportedly just as grim.
Mixed Performance Among Listed Shrimp Exporters
While the export numbers show positive signs, the financial performance of publicly listed shrimp companies on the Dhaka Stock Exchange (DSE) tells a mixed story.
Apex Foods, one of the largest listed exporters, saw its revenue drop by 2% and profits decline by 20%, according to unaudited financials. Meanwhile, Gemini Sea Foods suffered substantial losses due to reduced revenue and shrinking profit margins.
Calls for Policy Support
Exporters and processors are urging the government to extend financial incentives, improve infrastructure, and offer policy support to help smallholder farmers restart operations. Industry insiders believe such measures will not only sustain the current growth momentum but also enhance overall export earnings.
European and Middle Eastern markets are showing robust demand, and Bangladesh could significantly increase its seafood exports with the right support. However, the shortage of shrimp seed and raw material remains a critical bottleneck.
Focus on Vannamei Shrimp
Sheikh Kamrul Alam, Managing Director of Rupali Sea Foods Ltd. and BFFEA Vice President, blamed the previous government’s restrictive policies for factory closures. Still, he remains optimistic about the future, especially with the growing interest in Vannamei shrimp farming.
“Vannamei shrimp is highly profitable for processors, but approval for farming was delayed. Now that it’s been allowed, we’re seeing encouraging results,” Kamrul said.
Vannamei shrimp—also known as Whiteleg shrimp or Pacific white shrimp—originates from the Pacific coasts of Mexico and Central/South America. In Bangladesh, trial farming began in 2021 under the Bangladesh Fisheries Research Institute (BFRI) in Paikgacha, Khulna.
Following early success, the government authorized 12 companies to commercially farm Vannamei in 2022. These ventures have reported promising yields, signaling a bright future for commercial Vannamei farming in Bangladesh.
Kamrul added,
“Vannamei can yield 8,000–10,000 kg per hectare, compared to just 1,000 kg from traditional Bagda farming (Black Tiger shrimp). If we invest in production and scale up, shrimp exports can skyrocket, significantly boosting the country’s foreign exchange reserves.”
While vannamei shrimp may seem like a promising addition to Bangladesh’s aquaculture export basket, the reality on the ground tells a different story. Bangladesh’s shrimp sector is still heavily dependent on extensive aquaculture, where average Black Tiger shrimp (P. monodon) yields are less than 300 kg per hectare.
Even after years of commercial farming, local Monodon hatcheries continue to fall short of the mark—lagging in traceability, technical standards, and the consistent production of quality post-larvae (PL). As a result, the sector relies heavily on wild-caught PL to fill the demand gap, a practice that’s further depleting the country’s already stressed natural shrimp stocks.
On top of that, a large portion of Bangladesh’s shrimp farmers are smallholders who are deeply accustomed to the low-input, low-cost farming practices of native Black Tiger shrimp. For these farmers, transitioning to vannamei—which demands higher biosecurity, hatchery-sourced SPF stock, commercial feed, and controlled water systems—is not only unfamiliar but also financially burdensome. Without significant support systems and reliable inputs, it’s unlikely these farmers will be able to adapt quickly or sustainably.
In this context, if we haven’t been able to build a resilient and sustainable system around our native species after many decades of commercial farming, it’s unrealistic to assume we can suddenly succeed with vannamei—a species that demands far stricter management, infrastructure, and compliance.
And beyond our borders, the vannamei shrimp market is already intensely competitive and nearing saturation. Countries like India, Ecuador, Vietnam, and Indonesia—who are decades ahead in vannamei farming—are dominating global supply chains with economies of scale, integrated systems, and strong government support. Bangladesh, by contrast, is just starting out, with no foothold yet.
So the question remains—should we chase a crowded market we’re not ready for, or double down on our strength?
Vannamei of course hold the long-term potential, but in the present context, betting big on Black Tiger shrimp remains the most strategic, realistic, and sustainable path forward—for both the industry and the tens of thousands of farmers who rely on it for their livelihoods.
