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Post Harvest Value Addition Process of Exportable Shrimp of Bangladesh

M.S. Palash
Department of Agribusiness and Marketing, Bangladesh Agricultural University, Mymensingh

S.A. Sabur
Department of Agribusiness and Marketing, Bangladesh Agricultural University, Mymensingh

K.T. Rahman
Department of Agricultural Economics, BSMR AU, Gazipur

Abstract/ Executive Summary:

The study was conducted in Jessore, Khulna and Cox’s Bazar districts during 2008 to identify the value chain and estimate marketing margin, cost and profits from post harvest level to until they are in the hand of foreign buyers. Purposive sampling method was used to collect primary data from value chain actor such as traders and exporter through pre-tested structured questionnaire. Value chain actors of shrimp identified in this study were fry collector, hatchery owner, nurserer, farmer, village traders, purchasing agents, depot owners and processing plants owner. The actors of value chain transport shrimp usually by van/rickshaw/pickup/boat from the farmlands to the processing plant after then they used ship/air to transport the shrimp to foreign buyer. It was found that many shrimp collectors/middlemen took loan from the depot owners in order to extend loan to the farmers. Packaging revealed the highest cost item for traders constituting one-third of total cost followed by transportation (23%), wastage (9%) and loading and unloading (8%). It is found that average gross margin was higher in peak period (Tk. 12667) against lean period (Tk. 11250). Exporters incurred highest 12% of total cost for wastage followed by 11% for bagging, 8% each for loading and unloading and clearing and forwarding and 7% for GSP certificate. As the marketing cost is same for all grades of shrimp, the highest difference between purchase and sale prices (gross margin) make C-grade more profitable to export. Therefore present finding ruled out the belief that higher profit can be earned for exporting big sized shrimp.

Keywords: Value chain, Marketing cost, Marketing margin

Location: Jessore, Khulna and Cox’s Bazar districts

Start Date: 00-01-2008

End Date: 00-12-2008

Program Area: Postharvest and Agro-processing

Commodity: Shrimp

Objectives:

1. To identify the value chain and estimating marketing margin, cost and profits from post harvest level to until they are in the hand of foreign buyers.

Methodology:

The study was based on both primary and secondary data. Jessore, Khulna and Cox’s Bazar districts were selected for collecting primary data based on the concentration of shrimp farms. Some exporters were selected from Dhaka district. For identifying the value chain and estimating marketing margin, cost and profits, data were collected from traders and exporters using pre-tested questionnaire in 2008. For this purpose, 60 traders and 30 exporters were purposively selected from Jessore, Khulna, Cox’s Bazar and Dhaka. Secondary data were collected from various published and unpublished documents of government and non-government organization through personal communication and telephonic discussion. The data and information from field surveys, interviews and discussions were summarized which were analyzed and used to write this paper.

Source of Information: J. Agrofor. Environ. 3 (2): 49-52, 2010; ISSN 1995-6983

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

The exporters’ marketing cost depends on foreign destination, volume of shrimp per shipment, items of shrimp, conditions of consignment etc. Marketing costs are different for different foreign destinations. Marketing cost of exporters included costs of transportation, loading and unloading, packing materials, grading and packing, carrying, clearing and forwarding, market toll, wastage and losses, rent of shop, bagging, commission, tips and donation, terminal and handling charge (THC), bank service, salary and wages, GSP charge, export spoilage, telephone, personal expenses, entertainment and miscellaneous. The average marketing cost of exporter was estimated at Tk 7214/m.ton. Exporters incurred highest 12% of total cost for wastage followed by 11% for bagging, 8% each for loading and unloading and clearing and forwarding and 7% for GSP certificate.

Knowledge Management: Journal