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Marketing System of Wild and Hatchery Reared Fry of Penaeus Monodon and Its Value Chain in Bangladesh

Sheikh Aftabuddin
Institute of Marine Sciences and Fisheries University of Chittagong Chittagong-4331 Bangladesh

Mohammad Zafar
Institute of Marine Sciences and Fisheries University of Chittagong Chittagong-4331 Bangladesh

Md. Abdul Kader
Institute of Marine Sciences and Fisheries University of Chittagong Chittagong-4331 Bangladesh

Abstract/ Executive Summary:

A study was conducted between January - August, 2006 concerning the Penaeus monodon fry marketing systems in Bangladesh based on the existing one and economic evaluation of marketing activities. In Bangladesh, P. monodon fry marketing of the wild and hatchery reared ones is almost exclusively handled by private entrepreneurs. The Government of Bangladesh has no command on this issue except the banning of wild fry catching. The market chain from fry catchers or fry producers to shrimp farmers passes through a number of intermediaries: fry faria, fry traders, fry commission agents and retailers. The existing marketing system is buyer-driven chains where producers that is shrimphatchery owners have little ability to influence the price, on the other hand, wild fry catchers or small farias dependent on the dominant buyers or larger arathdars. The fry value chain is complex, different intermediaries of each node of the chain is an important actor to determine the fry value. The price differences between hatchery fry producer and the shrimp farmers was 250 BDT while wild fry catcher and shrimp farmers was 450 BDT. The farias, arathdars, traders and commission agents purchase P. monodon fry from the fry catchers, hatcheries and from one another and they trade in different volumes across different regions. Moreover, these agents usually run on a commission basis and charged 50 BDT per 1000 fry selling while the price was higher than 250 BDT per 1000 fry and charged 20 BDT while the fry price is lower that is, below 250 BDT per 1000 fry.

Keywords: Shrimp fry, Arathdar, Faria, Marketing, Retailer

Location: Cox’s Bazar and Khulna district

Start Date: 00-03-2006

End Date: 00-08-2006

Program Area: Socio-economic and Policy

Commodity: Shrimp

Objectives:

To observe the marketing system of P. monodon fry, distribution chain, price determination and their ultimate impact on our shrimp industry.

Methodology:

The wild post larvae of P. monodon (local name Bagda) are available for about 9 months but the peak period is March to August. Fry catcher, collect the post larvae depending on low and high tide by using push nets and set bag nets. The present study was carried out in the coastal regions of Bangladesh. The selected sites were Kolatoly and Teknaf of Cox’s Bazar while Satkhira and Paikegacha were of Khulna region. Surveys were conducted with fry catchers, fry farias and fry traders. Considering the peak fry collection period, the 180 day study was conducted from March - August, 2006. A total of 25 fry collectors were interviewed at Cox’s Bazar and 15 fry collectors at Khulna region. The hatchery reared post larvae are available throughout the whole year but here in Bangladesh it is available from January to June due to salinity and temperature variation. Of the 40 operating hatcheries in Bangladesh 25 were surveyed. Information relating to the marketing system of wild and hatchery reared fry of P. monodon was collected based on structured questionnaire, direct observations, literature reviews and interviews with hatchery managers, fry traders, commission agents and shrimp farmers. This investigation was conducted during January - June, 2006.

Source of Information: African Journal of Marketing Management Vol. 1(5) pp. 122-127, August, 2009

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

One of the major problems of P. monodon fry marketing is that the fry collectors and hatchery owners are often deprived of fair prices for their catches and production. This is perhaps the effect of high price spread among the different market intermediaries. The high price spread enables the intermediaries to reap the maximum benefit from the marketing operation. At lower ends of the chain among fry collectors and faria, bargaining is limited but the arathdars, commission agents and big farm owners can bargain among themselves and get more profit. The price of fries is a sensitive issue and it affects the buying and selling process of shrimp fry marketing. Market margin is the gap between the price received by the fry catcher or hatchery owner and the price paid by the ultimate shrimp farm owners. If the fry producers or catchers would sell their product directly to the shrimp farmers, the price of the fry might go down compare to the existing market price. Thus, the production cost of shrimp would be lesser.

Knowledge Management: Journal