Welcome to the Presentation Group I

1. Welcome to the PresentationGroup I Presented By Sk. Faijan Bin Halim (MSS 151510) Economics Discipline Khulna University Khulna Special Thanks To NishadNasrin Assistant Professor Economics Discipline Khulna University Khulna

2. Group I Shrimp Industry Study: Problems, Prospects and Intervention Agenda A Paper By ATDP Research Team September 18, 2005

3. Acronyms and Abbreviations ATDP = Agro-based Industries and Technology Development DANIDA = Danish International Development Agency EC = European Commission EU = European Union Govt. = Government ha = Hectare mt = Metric Ton PL = Post Larvae R&D = Research and Development SPS =Sanitary and Phyto-Sanitary SSOQ = Shrimp Seal of Quality USAID = U.S. Agency for International Development WTO = World Trade Organization

4. Terminology • Antibiotics: Generally used for the treatment of a bacterial infection. • Bio-security: Bio-security is a set of measures designed to protect a property from the entry and spread of pests and diseases. • Brackish Water: Normally known as brack water. It is salt water and fresh water mixed together. It is saltier than fresh water but not salty as sea water. • Brood Mother: Brood mother is a specific pathogen free variety of shrimp for commercial aquaculture today. This ultimately helps the marginal farmers and increase export. • Greater Noakhali Agriculture Extension Project (GNAEP): A fisheries management model developed and tested for fisheries, giving genuine fisherman access to fishing rights direct from the government and aiming at a sustainable utilization of resources. It was first started in July 1998, with a project duration of 7 years. • Hatchery: A place where the hatching of fish is artificially controlled for commercial purposes.

5. Terminology (cont…) • Hazard Analysis Critical Control Point (HACCPP): It is a systematic preventive approach for food safety from biological, chemical and physical hazards that can make the finished product to be unsafe, and designs measurement to reduce these risks to a safe level. • Land Grabbing: Land grabbing means buying or leasing of large pieces of land in developing countries by domestic and transnational companies, government and individual. • Mortality Rate: The number of deaths in a given area or period, or from a particular cause. • Post Larvae: Hatcheries sell two products. One is nauplii (tiny, newly hatched and first stage larvae) and post larvae means which have passed through three larval stage. • Sanitary and Phyto-sanitary (SPS): SPS measurement enteed into force with the establishment of WTO in 1995. SPS measurement sets out the basis rule for food safety, and animal and plant health standard. It allows countries to set their own standard.

6. Terminology (cont…) • Shrimp Seal of Quality (SSOQ): SSOQ prepares certification standard pertaining to food safety, quality assurance, environmental sustainability and social responsibility in the Bangladesh shrimp sector. These standards apply to all operators in the shrimp sector. • Tax Holiday: It is a temporary reduction and elimination of tax. Government usually creates tax holidays as incentives for business investment. • Value Chain: A value chain is a set of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market. • Wild Fry: Wild fry is also known as wild post larvae. There are abundant supply of naturally occurring post larvae therefore there is no need to develop hatchery technology.

7. Summary of The Study • Shrimp is one of the leading export items of Bangladesh and accounts for roughly 2.5 percent of global exports and fetches a fair amount of foreign exchange ($250-330) million for last three years. • It has ample demand in international market and Bangladesh is blessed with an environment congenial for shrimp production. • A primary study was undertaken to detect the problems plaguing the different levels of the value chain of shrimp in the country. Motive of the Study • This study aims to identify obstacles to the growth of the industry and develop some intervention strategies that would help eradicate these obstacles and begin to develop a strategic model to achieve an export target of $1 billion by 2010.

8. Problems of the Study • Inefficient Management • High Mortality Rates • Low Quality Shrimp • Negative Country Image Abroad • Indiscriminate Catching Brood Mothers • Lack of Integrated Agriculture Policy • Inadequate Sanitary and Phyto-Sanitary Measures • Lack of Standard • Virtual Competition Among Different Actors • Lack of Coordination among Donor Agencies • Lack of Awareness • Unfair Practice by Agents • Non-existent R&D endeavor

9. Intervention Strategies Towards Achieving Target • The study strongly recommends an integrated model for both Golda and Bagdaprojects. • Strategic business units can be cooperative based, where groups of farmers work together under a commercial umbrella and disseminate technical information and training to their farmer clients • Dialogues and forums should be held regularly with exporters and importers to raise and address questionable trade practices and standards. • The government must formulate an integrated agricultural policy to ensure sustainable development in this sector. • Instead of working in isolation, the donors should address these problems collaboratively so that transfer of learning and experience is ensured.

10. Intervention Strategies Towards Achieving Target (cont….) • Donors should also formulate smooth exit strategies whereby projects are handed over to the private sector after completion. • Ecological protection and gender equity issues can be controlled by working with the aforementioned strategic units to prohibit certain dangerous practices like land grabbing, indiscriminate catching, child labor and participation of women across the value chain, etc. • Mass awareness can be generated on such issues as bio-security by again working through the established industry channels that will benefit from them. These again are the business units and association groups. • The SSOQ and DANIDA models can be applied in this area. The positive aspects of both the models may be applied in the value chain. • It is found that such intervention can be done quite possibly if all the stakeholders confront them jointly in an integrated fashion.

11. Shrimp Industry in Bangladesh • Largest export commodity of the country. • Bangladesh Produces 2.5 percent of the global production of shrimp generating more than US$ 300 million annually. • Main cultured species is the tiger shrimp (bagda shrimp) a marine shrimp and mainly cultivated in brackish water.Around $250 million contributed from Bagda alone. • Next cultured species for export is the fresh water variety locally called golda. • Shrimp industry provides direct employment to over 6,00,000 people who in turn support over 3.5 million dependents. • Suffers from lack of vision and strategic direction.

12. Shrimp Sector Contribution Japan, EU and USA are the main importer of Bangladeshi shrimp

13. Shrimp Culture • Follow traditional method and annual yield is 250-300 kg/ha • Total Shrimp farming area-2,76,000 ha • Marine Shrimp-195000 ha and Freshwater Shrimp-86,000 ha • District involved-20, Upazila-52 • Bangladesh captured only 2-3 percent of world production of shrimp. • Shrimp sector contributes 84% share of total fishery export in Bangladesh (2012-13). • Country-wise Share USA-26%, Belgium-21%, UK-13%, Netherland-5%, Germany-8%, Japan-4%, Russia-3%, Others-20% Supply Chain of Shrimp Culture Supplier Boat, Rickshaw Agent Boat, Truck Depot Commission Agent Factory

14. Objective of the Study The objective of this study is to identify the industry-embedded problems and then to layout intervention strategies at each step of the value-chain to address the same. • Ultimate Goal of the Study The ultimate goal of the research is to assess the possibilities of developing a strategic business model that can help achieve an export target worth US$1 billion by 2010. • Methodology of the Study • The methodology entailed both secondary and primary qualitative study. Secondary research included both local and international studies conducted on the subject. Primary study involving depth interviews of actors across the value chain. • The findings of the first phase of the study was validated in a stakeholders workshop focusing on problems outlined by the members of the value chain and the intervention strategy developed based on the outcome of the study

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