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Economic Study on Production and Marketing of Shrimp and Prawn Seed in Bangladesh

M. S. Islam
Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh-2202, Bangladesh

M. S. Rahman
Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh-2202, Bangladesh

M. M. Haque
Graduate Training Institute, Bangladesh Agricultural University, Mymensingh-2202, Bangladesh

S. Sharmin
Department of Rural Sociology, Bangladesh Agricultural University, Mymensingh-2202, Bangladesh

Abstract/ Executive Summary:

Shrimp farming and related activities contribute significantly to the national economy of Bangladesh. Successful shrimp culture depends mainly on the availability of healthy and quality shrimp seeds. The present study was designed to analyze the production and marketing system of shrimp seed in Bangladesh. A total sample of 80 stakeholders comprising each of 20 operators of bagda and golda hatcheries, and each of 20 shrimp seed traders and faria (bapari) were selected purposively. Data and information mainly on shrimp seed production and marketing were collected for 2009-2010 from Cox’s Bazar and Jessore districts depending upon the concentration of hatcheries established for shrimp seed production. In most cases tabular method of analysis and flow diagram were used. The average sizes of bagda and golda hatcheries were 2.6 and 2.9 acres and the corresponding productions were 430 and 250 million PL per year in Cox’s Bazar and Jessore districts respectively. Per hatchery per year total costs, gross returns and net returns were Tk 50.2 and 19.6 million; Tk 90 and 56.3 million; and Tk 39.6 and 36.7 million in Cox’s Bazar, and Jessore districts respectively. Shrimp seed production is capital intensive and it is risky business. Although shrimp seed production cost is very high but the farm could earn higher profit by ensuring better culture and management. Marketing channel and distribution system of shrimp seed were identified in the present study. Shrimp seed passed from hatcheries to shrimp farmers followed by sequence of intermediaries. Hatcheries directly sell about 80% shrimp seed to aratdar and rest 20% to shrimp seed traders but in case of shifting shrimp seed by cargo plane almost all are sold to aratdar in sale centre. The aratdar is a commission agent who has a fixed establishment and helps the traders (beparies) to sell their products and usually charges a fixed commission of Tk 25-30 per 1000 PL sales revenue. However, less number of intermediaries was involved in shrimp seed marketing.

Keywords: Shrimp seed production, Stakehold, Involved, Capital investment, Marketing channel

Location: Cox’s Bazar and Jessore districts.

Start Date: 00-00-2009

End Date: 00-00-2010

Program Area: Socio-economic and Policy

Non-commodity: Market analysis

Objectives:

To analyse the production and marketing system of shrimp seed in Bangladesh.

Methodology:

Selection of stakeholders involved in shrimp seed production and marketing: Production practices in producing shrimp seed and management of shrimp seed farms (SSFs) is very important to have higher production and economic returns. There are 58 bagda hatcheries and 35 golda hatcheries in Bangladesh. Considering the salinity, most of the bagda hatcheries are established in Cox’s Bazar district and very few (4) are in Khulna district. On the other hand, golda hatcheries are mostly located in grater Jessore district and to some extent, other areas in Bangladesh. However, to know the production practices and input used in producing shrimp seed (bagda and golda), operators of bagda shrimp farm (SSF) and golda SSF were selected. For shrimp seed producers and shrimp seed distributors, a total sample of 80 stakeholders comprising each of 20 operators of bagda hatcheries and golda hatcheries, and each of 20 shrimp seed traders and faria (bapari) were selected purposively. Shrimp seed traders and faria (bapari), and the related market participants are directly involved with supply chain and marketing system of shrimp seed. All these sample stakeholders were selected depending on concentration and availability in different locations. In selecting these stakeholders, purposive random sampling was followed. Data collection and analysis: The production process and costs incurred for producing shrimp seed aims at making use of primary data which were collected from selected locations depending upon the concentration of hatcheries established for shrimp seed production. Since the SSFs are concentrated in Cox’s Bazar and Jessore, both hatcheries and hatchery operators of bagda and golda were selected from these areas. As the shrimp seed production and its stocking suffer from seasonality, data were collected for one year period during 2009-2010. SSFs were considered as the unit of analysis to determine the production practices and quality of shrimp seed produced in government and private SSFs. Secondly, nurserers and PL trader, as well as faria (bapari) were selected to examine the marketing system and supply chain of shrimp seed. The present study collected data and information mainly on shrimp seed production and marketing. For shrimp seed production and marketing, hatchery operators, and traders involved in marketing channel were identified, and economic returns of shrimp seed production, and marketing participants were determined by using tables and flow diagram. Data were collected from respondents by using semi-structured interview schedule and conducting PRA for group information. In most cases tabular method of analysis was used to determine the cost, returns and profitability of shrimp seed produced and to assess the marketing system and supply chain of shrimp seed.

Source of Information: J. Bangladesh Agril. Univ. 9(2): 247–256, 2011 ISSN 1810-3030

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

Shrimp seed production is capital intensive and it is risky business because the survival of PL depends on many other things.
Due to unavailability of in country technical hand, still foreign experts are employed to produce shrimp seed.
Production cost is very high but the hatchery can earn higher profit by ensuring better culture and management to produce PL and marketing it.
Less number of intermediaries are involved in shrimp seed marketing and due to that shrimp farmers could have shrimp seed in lower price.
Shrimp seeds are produced in Cox’s Bazar but about 80-90% shrimp seeds are used in Khulna region. So, it involved lot of marketing cost to carry it from Cox’s Bazar to Khulna region.

Knowledge Management: Journal