Starting December 1, 2024, Bangladesh will gain 100% duty-free access to Chinese markets, following a recent announcement from the Chinese Embassy in Dhaka. This initiative, set to coincide with the anniversary of Bangladesh-China diplomatic relations, promises transformative benefits for Bangladesh’s seafood industry, especially for black tiger shrimp exporters.
New Horizons for Black Tiger Shrimp Exports
Bangladeshi shrimp sector, long recognized for producing premium-quality black tiger shrimp (locally known as “Bagda”), has captured the interest of Chinese investors. Notably, Cheng Ma, co-founder of Dhaka-Taka (Beijing) Trading Corporation Ltd., is spearheading this interest, with plans to invest in shrimp farming and processing. This collaboration could enhance shrimp exports from Bangladesh to meet the growing demand in China, where consumers spend approximately $2 billion on black tiger shrimp annually.
During his recent visit to Khulna, a prominent shrimp-producing region, Cheng Ma observed local farmers using natural feeding methods and traditional lunar cycles to raise shrimp, distinguishing Bangladeshi black tiger shrimp as a premium product in the global market. He aims to modernize local shrimp farming with technology like solar-powered stations, aiming to improve efficiency and reduce costs for Bangladeshi farmers.
Expanding Production and Export Potential
Bangladesh’s shrimp industry plays a pivotal role in its economy, with around 180,000 hectares dedicated to shrimp farming, primarily in the southern region. Currently, 59% of Bangladesh’s shrimp exports are destined for the European Union, but the duty-free access to China is expected to boost overall exports and expand market diversification for Bangladeshi shrimp.
The Export Promotion Bureau (EPB) has highlighted the increasing global footprint of Bangladesh’s shrimp sector, driven by quality processing facilities across the country, including 40 hatcheries in Cox’s Bazar and 24 shrimp processing plants nationwide. The anticipated rise in exports will not only strengthen Bangladesh’s economy but also create enhanced employment opportunities for local communities dependent on shrimp farming.
Heritage Certification and Sustainable Development
In 2022, Bangladesh achieved heritage certification for black tiger shrimp, underscoring its premium status on the international market. This certification complements efforts to position Bangladeshi shrimp as a top choice for global consumers, especially with growing demand in China. However, attaining premium pricing will require adherence to traceability standards, sustainable farming practices, and eco-friendly processing methods to ensure minimal environmental impact.
Dual Paths for Bangladesh’s Shrimp Industry
As Bangladesh’s shrimp industry grows, stakeholders are considering two paths: expanding production of Vannamei shrimp for volume or focusing on Monodon shrimp as a high-value, natural product. The decision will significantly impact future trade dynamics, environmental sustainability, and market positioning in the global seafood sector. Industry experts emphasize the need for close collaboration between policymakers, investors, and development partners to maximize the sector’s potential.
