Shrimps, often dubbed "white gold" for being one of Bangladesh's most valuable export items, are experiencing a decline in export performance.
This downturn is due to several factors, including a lack of sufficient fish supply, limited product variety and challenges in creating new international export markets.
The decline in Bangladesh's shrimp industry is primarily attributed to the global market slowdown, which has reduced international demand and negatively impacted exports. Internal challenges, such as mismanagement in shrimp farming, have further exacerbated the industry's difficulties.
The situation is expected to worsen as Bangladesh is set to graduate from Least Developed Country (LDC) status in a couple of years. This transition will increase competition, result in the loss of tariff preferences and gradually phase out export subsidies from both the government and importing countries.
Drop in export
According to data from the Export Promotion Bureau (EPB), the country's shrimp exports were recorded at $509.72 million in FY15, but it dropped to $300.26 million in FY23, representing an almost 50 per cent decline in just nine years. During the July-May period of the outgoing FY2023-24, shrimp export earnings further fell to $226.59 million.
The sharp decline in shrimp export performance is not sudden. Each year, the industry's export figures have been decreasing. During the July-May period of FY2022-23, shrimp exports totalled $283.55 million, approximately $57 million higher than the same period in FY24.
After the Covid-19 pandemic, exports rose significantly from $289.24 million in FY2020-21 (July-May) to $374.20 million in FY2021-22 (July-May). However, when Russia invaded Ukraine in February 2022, escalating the conflict that began in 2014, the resulting international political and trade turmoil further hindered the shrimp industry, leading to continued declines in export performance.
Cyclone Remal's impact
Adding to the woes of the already struggling shrimp industry, cyclone Remal which hit the Bangladesh coast in May, caused extensive damage to shrimp farms and infrastructure, further exacerbating the sector's difficulties.
Khalid Hasan Himel, who owns eight fish enclosures (locally known as "ghers") in Sundarban Union of Mongla Upazila, said, “Many people are now shifting from shrimp cultivation to farming. We lost about Tk 40 lakh in our ghers due to cyclone Remal. Those with smaller enclosures have lost almost everything.”
“Shrimp cultivation is not easy. We collect shrimp fries from the channels of the Sundarbans and Pasur River. Due to high temperatures, the shrimp get infected with viruses and turn red. Sometimes the entire gher becomes infected and unusable,” he added.
According to the Department of Fisheries, the severe cyclonic storm Remal caused a financial loss of Tk 858.67 crore to the fisheries sector, including the inundation of ponds, enclosures, hatcheries, fisheries, shrimp, fish fries, and crabs due to heavy rain, floods and tidal surges.
The recent cyclone Remal affected over 7,943 tonnes of shrimp, costing over Tk 339.29 crore in financial loss. Over 100 shrimp enclosures in Khulna's Koyra, Dakop, and Paikgasa upazilas were washed away by tidal surges after the cyclone struck the Bangladesh coast.
Challenges and potential in shrimp farming
Shrimp farming in Bangladesh still relies on traditional methods, resulting in a production rate of only 300-400 kg per hectare, the lowest in the world. However, scientific farming methods could increase production to 3-4 tonnes per hectare, which has yet to be achieved.
Experts attribute the decline in shrimp exports to a lack of proper farming environments, quality hatcheries, and adequate care. Climate change is also a factor, with rising temperatures increasing the prevalence of shrimp diseases caused by viruses.
Additionally, cultivating non-native shrimp like vannamei (whiteleg shrimp) requires proper management and investment.
Expert insights
Dr Md Latif ul Islam, chief scientific officer and station chief at the Brackish Water Station in Paikgasa, Khulna of the Bangladesh Fisheries Research Institute (BFRI), said, “The production of vannamei shrimp is good, but it requires more care than native shrimp to cultivate it. One hectare of area can produce 6-8 tonnes of bagda, but the same area can produce 10-11 tonnes of vannamei. However, the machinery required for such production demands significant investment and skilled workers.”
More than 60 countries, including China, India, Vietnam, Thailand, Indonesia, Malaysia, Ecuador, and Mexico, produce vannamei, meeting about 80 per cent of the world's shrimp demand.
Dr Md Latif ul Islam emphasised, “We need long-term plans for shrimp cultivation. A 30-year project could be implemented, focusing on research into shrimp farming, fry production, and disease eradication. Exporters would participate and invest in this project if necessary.”
Call to facilitate vannamei cultivation
In March, the Department of Fisheries approved the commercial production of whiteleg shrimp in Bangladesh, following demands from exporters. The government has also allowed trial production of vannamei shrimp fries to meet the demand for quality shrimp.
Ashraf Hossain Masud, senior vice president of the Bangladesh Frozen Foods Exporters Association (BFFEA), said, “Export performance has been declining for the last few years. The situation is dire, and we are now trying to survive by cultivating vannamei shrimp due to its higher demand compared to our native species.”
“Vannamei shrimp is more temperature tolerant than bagda. Bagda shrimp lives at the bottom of the gher, making it less profitable due to space limitations. Vannamei can utilise the entire enclosure, making it more profitable to cultivate. However, proper farming space, skilled technicians, good feed, and quality fry are needed to grow vannamei commercially, which requires investments,” he said.
“We need more government support, such as agricultural loan facilitation, encouraging farmers to cultivate vannamei, access to finance, infrastructural development, and more research and development to revive the once-thriving export industry,” he added.
