09 Aug The competitive vannamei shrimp market is devaluing frozen fishery products from Bangladesh
The vannamei or Whiteleg shrimp is a type of shrimp produced in aquafarms in the South Pacific or Central America, with whitish legs, no cross-stripes and a pink body. Aquaculture is the sustainable way of raising fish of different species, with all kinds of professionals working to meet the strict controls that they need to undergo before being marketed for consumption. This type of shrimp has a very tempting price and the demand is high, and this has been affecting traders in the fish sector in Bangladesh.
The Whiteleg shrimp has forced frozen product exporters in Bangladesh to lower their prices in order to continue selling their products. The high demand for this type of shrimp at such an attractive price on the international market has pushed all those products that are sold frozen into second place, and, despite the good quality of the latter, the price of this shrimp has devalued them completely.
Given its low cost, countries like Russia or the United States have decided to opt for this type of shrimp compared to the higher priced tiger prawn.
Faced with this devaluation, an effort is being made to promote the sale to external buyers in order to continue offering good quality at a somewhat lower price, but achieving returns as before, albeit somewhat less.
For example, the sales of tiger prawn sold in Bangladesh were falling on the world market, and despite attempting to recover sales with their price offer, it still fails to match that of Whiteleg,
due to the fact that this year countries like India, Thailand or Vietnam are leading the shrimp market by selling Whiteleg. Faced with this situation, exporters have had to ask the government to take certain measures, such as increasing subsidies.
Faced with this decline in the consumption of frozen products in Bangladesh, exporters demanded direct and rapid approval to cultivate this type of shrimp in order to safeguard the industry. Currently there is a legal restriction on cultivating Whiteleg in aquafarms, which is why traders struggle every day in an attempt to regulate the losses that are piling up day by day.
The financial advisor requested the possibility of cultivating it at least experimentally, with the support of the shrimp research centre. After demonstrating that an absolute and effective control of this activity could be assured, a pair of aquafarms could be implemented for their production.
When buying fish you have to take into account where it comes from and how it is produced, and while obviously as a customer you always look for the best price for the product, you should bear in mind that there are frozen seafood products that due to their treatment or limited production because the species is not common, cannot reduce the price to a level similar to that of the Whiteleg shrimp. The balance is a complicated one, and at the moment this shrimp is winning the game, although little by little attempts are being made to make things fairer, at least so that it can be produced in Bangladesh as it is in other places.