Shrimp export from the country has been experiencing a robust growth in the last six months (July-December 2021) of the current fiscal. No doubt a rebound of unlikely kind amid the fallout of the pandemic, this surge - more than 38 per cent compared to the corresponding period of the previous year - is however attributed to the rise in market prices of Bangladesh's prime variety of shrimps, namely Bagda (Bengal tiger prawn). Soon after the Covid-19 began to devastate life and livelihood all over the world around two years from now, export of Bagda shrimp had come almost to a halt due to low prices. Since mid 2021, surprisingly, the situation changed with prices rising and exporters enjoying high sales.
However, given the shift to the advantage of Bangladeshi exporters, one can not rest assured that market for this prime variety of shrimp will continue to be bullish. This is because consumer tastes and preferences keep changing and exporters have to remain continually tuned to the market behaviour and when necessary, change marketing strategy by way of new product development and adaptation. It is here that the need for introducing newer varieties of shrimps in line with market demand is extremely important. Otherwise reliance on a costly and prime variety such as Bagda may not be the best practice to stick to. According to Bangladesh Frozen Food Exporters Association (BFFEA), 85 per cent of the shrimp exported from Bangladesh goes to European countries, while 15 per cent goes to America, Japan and other countries. According to Export Promotion Bureau (EPB) data, Bangladesh's share in the world shrimp market has decreased from 4.0 to 2.0 per cent in the five years till 2018-19. During this time, shrimp export has fallen by 33 per cent and production has shrunk by 28.5 per cent. As a result, frozen food - comprising mainly shrimp - once the third major export item of Bangladesh next to RMG, jute and jute goods, has now dropped to seventh position.
Export is believed to have been hit by undiversified product range that adversely affected marketing. According to industry insiders, Bangladeshi shrimp, recognised as a delicacy as well as a high-priced kitchen item overseas, is struggling to retain its market share amid uneven competition with low priced varieties from other sources.
One of the reasons for not being competitive is attributed to the low price of a shrimp variety called Vannamei (or white-leg shrimp), a disease-tolerant and high-yielding variety. The Vannamei variety, because of its high yield and low production cost, has already gained wide popularity capturing 77 per cent of global demand, according to reports. However, this variety is not officially approved for cultivation in Bangladesh, presumably because of its low quality compared with the better and high priced varieties cultivated and exported from the country. Since it is a policy decision not to allow cultivation of this variety, the authorities may like to revisit the issue-- given the need of the time. Needless to say, it is the consumers' choice that dictates the market.