Exporters of frozen black tiger shrimp in Bangladesh report that the price they are getting for 16-20 count size product has fallen by 42% to $5.25 since August of 2014. The drop in value of the euro and Russian ruble against the US dollar has been a factor, as pricing is in greenbacks.
“We are forced to sell at lower prices to retain our international buyers. Exports to Russia have dipped to almost zero, while the demand for shrimp also fell in Europe because of an economic slowdown there,” S. M. Amzad Hossain, president of Bangladesh Frozen Foods Exporters Association, said during a press conference in Dhaka on March 3.
Bangladeshi exporters earned $638 million for 55,074 tons of frozen food sales during 2013-14. Most of the value was attributed to shrimp, and approximately 70% of the exports went to European Union and Russia, according to a report in the Daily Star.
The newspaper went on to point out that shrimp shipments declined 5% year-on-year to 32,800 tons in July-January of this fiscal year. Earnings dropped 5% to $397.6 million during the period from the same period a year ago, according to the Bangladesh Export Promotion Bureau.
“New orders are not coming, while many buyers have cancelled orders. As a result, we are being forced to sell shrimps at low prices,” said Hossain. “This will affect our purchase [from farmers] in the next harvesting season.”
The Daily Star reported that ongoing political turmoil in Bangladesh has “dealt another blow to the frozen food processors by affecting transportation of raw and processed shrimp and fish. As a result, production in factories has also dropped.”
Considering the pressure that value-added shrimp producers are under, the Bangladesh Frozen Foods Exporters Association is asking the national government to boost the subsidy for frozen food exports from the current 10% rate to 25% as soon as possible.
