Print This Page

 

June 2, 2015

Bangladesh

Shrimp Farmers Turn to Local Markets

 

In the wake of slumping prices and weakening demand in international markets, farmers are selling their shrimp on the domestic market in a desperate attempt to recover production costs.

 

Exporters pay $4.24, at most, per kilogram for small to medium-sized whole shrimp, while locally traders, who market them in domestically, offer $4.40 to $4.82 a kilogram, said Shoyeb Mahmud, general manager of Jahanabad Seafood, Ltd.

 

Historically an expensive item for local consumers, giant tiger shrimp (Penaeus monodon) are selling well in local markets because of the rising purchasing power of Bangladeshi consumers.

 

Even with the new, local markets, it’s not enough to recover our investment, said Atiar Rahman, a giant tiger farmer in Bagerhat, one of the main shrimp farming regions in southwest Bangladesh.  “The situation is very bad this year,” he said, adding that prices this year are almost half of what they were a year earlier.  “None of us will be able to recover the production costs at the prices that we are getting wherever we sell,” said Rahman, who has also lost shrimp to disease.

 

The export prices of large black tiger shrimp, the major product for the European market, have slumped to $5,00 to $5.50 a pound from upwards of $9.20 a pound in the first quarter of the fiscal year, exporters said.  A host of factors—increased supplies of white shrimp (P. vannamei) from Ecuador, India, Vietnam and Indonesia, large inventories in the USA, depreciation of the euro and ruble—have caused the drop in shrimp prices.

 

Processors say the demand for small to medium-sized shrimps has fallen faster than the demand for larger sizes.

 

Export revenues from shrimp in the first ten months of the fiscal year fell 3.6 percent year-on-year to $440 million, according to the Bangladesh Export Promotion Bureau.

 

Source: The Daily Star.  Shrimp Farmers Turn to Local Markets to Recover Costs.  Sohel Parvez.  June 2, 2015.

Print This Page