Inb_304_Assignment_01_L

1. Course: International Business
Course ID: INB304
Section: 1
Topic: Export of Frozen food from Bangladesh

2. TABLE OF CONTENTS
TABLE OF CONTENTS............................................................................................................................0
1 Introduction.............................................................................................................................................3
1.1 Frozen food......................................................................................................................................3
1.2 Significance of frozen food............................................................................................................3
1.3 Purpose of the report.....................................................................................................................4
1.4 Organization of the report..............................................................................................................4
2 Frozen food export level........................................................................................................................5
2.1 Frozen food export amount and value in the last year...............................................................5
2.2 Changes in amount and value over time.....................................................................................5
2.3 Reasons for increasing the frozen sector of Bangladesh..........................................................6
2.4 Future exportable frozen items.....................................................................................................6
3 Destination of exportable frozen food..................................................................................................7
3.1 Main Bangladesh destination for frozen food..............................................................................7
3.2 Frozen food products destination.................................................................................................8
3.3 Emerging opportunities..................................................................................................................8

3. 3.4 Probable causes for exporting in particular regions...................................................................9
4 Bangladesh Frozen Food Export Reasons.......................................................................................10
4.1 Trading foundation for Bangladeshi frozen food.......................................................................10
4.2 Competitors of Bangladesh regarding exporting frozen foods................................................11
4.3 Competitive advantages of Bangladesh....................................................................................11
5. Challenges faced in export of frozen food.......................................................................................11
5.1. Type of challenges facing Bangladesh in exporting frozen food.....................................................11
5.2. Demand side challenges..................................................................................................................12
5.3. Supply side challenges....................................................................................................................13
6. Suggestions to overcome challenges..............................................................................................15
6.1. What can be done to overcome challenges......................................................................................15
6.2. Role of government.........................................................................................................................16
7. Summary and conclusions................................................................................................................16

4. LETTER OF TRANSMITTAL
25th
July 2021
To,
Raisul Awal Mahmood
Course Instructor,
Independent University Bangladesh
Subject: Assignment on “Export of Frozen food from Bangladesh”
Dear Sir,
Here is the assignment that we assigned on the topic as per your request. The assignment has
been completed by the knowledge that we have gathered from the course “International
Business”.
We are thankful to all those persons who provided us important information and gave us
valuable advices. We would be happy if you read the report carefully and we will be trying to
answer all the questions that you have about the assignment.
We have tried our best to complete this assignment meaningfully and correctly, as much as
possible. We do believe that our tiresome effort will help you to get ahead with this sort of
venture. In this case it will be meaningful to us. However, if you need any assistance in
interpreting this assignment please contact us without any kind of hesitation.
Thanking you.
Yours obediently,
Ellen Hossain - 1830427
Mehdy Hasan Arpon - 1610190
Minhajul Akter Audri - 1730433
Md. Nafis Hasan Dastgir - 1810605
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5. 1 Introduction
1.1 Frozen food
It is preserved in freezing food from the moment it has been ready for consumption
[ CITATION DaW16 l 1033 ]. Farmers, fishers, and trappers have been conserving
grains in winter since early times and producing them in unheated structures. Freezing
food slows down the breakdown by converting leftover humidity into ice, which inhibits
the development of most bacterial species. There are two procedures in the foodstuffs
industry: mechanical and cryogenic (or flash freezing). The kinetics of freezing is crucial
to maintaining food quality and texture. Freezing quickly produces smaller ice crystals
and retains cellular integrity. Because of the extremely low liquid nitrogen temperature
-196 °C (−320°F), cryogenic freezing is the most rapid froster technique accessible. The
Hilsa Fish Frozen is one of the most popular and most desired seafood in the world.
There is a widespread appreciation for the flavor of the Frozen Hilsa fish and it is time to
make the most of the fish. kg.
1.2 Significance of frozen food
The worldwide food industry's value is between USD 15 billion and 16 billion, with the
contribution of Bangladesh amounting to USD 600 million [ CITATION DaW16 l 1033 ].
The frozen food industry generated a total export value of USD 337.33 for 2019-20
(July-January), 1.47% of its entire export value, and exceeded the exportation of cotton
and cotton, leather, and plastic goods. Shrimp is included in 73.4 percent of the
shipment of frozen food. In Japan, the EU, and the USA, the company has huge
consumer bases, and rising demand in other places too. The shrimp cultivation (Galda
and Bagda) across the nation has reached 300 tonnes/hectare, said Bangladesh Frozen
Food Exporters Association (BFFEA). Owners attempt, however, to improve their
production efficiency by employing technology and innovations such as semi-intensive
culture methods to match the efficiency of nations such as China, Vietnam, and
Thailand that produce about 2500 tonnes/hectare of shrimp. In addition to shrimp,
processed foods are also a significant part of the export industry. The category of food
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6. processed is based on agro-based goods, such as inland water (dry and frozen fishes),
processed animal and poultry meat (beef, foul, and moths), the fruit of the season, and
other things. Bangladesh still has a very long way to go to ensure that the worldwide
demand is met with extensive freezing and processing facilities. Foreign and local
investors, therefore, strive to set up freezing and transformation industries in the nation.
It is predicted that the frozen Bangladeshi food industry would reach USD 420.48m by
2024. The quick range of urban life, increasing availability revenues, the choice of
nuclear families with working parents, less time and trouble in cooking with the use of
frozen food, etc. are major contributing factors to the increased popularity of 'ready to
cook' meals. With rising demand, prominent firms such as Golden Harvest, Kazi Farms,
and Pran have developed new methods to extend their position on the market by
entering the frozen category of foods. Demand for other products is also growing, apart
from frozen fish and meat. The most fast-growing categories are projected to include
frozen food offered online. This was a tiny part of the market but the city population
progressively started to favor online channels since it is easy, time-consuming, and
gives a wider choice of items without much physical effort. The frozen food market in
Bangladesh has been strengthened. Local and global players are there. Golden harvest,
Pran RFL Group, Bengal Meat, AG Foods Ltd, Kazi Farms Group, and McCain Foods
are among the industry's leading companies. Golden Harvest has a 23% market share
in the local market, followed by Lamis. The cheap switching costs led to the increased
sales of these firms, with the product availability at neighboring retail locations, online
platforms, and department stores. In addition to manufacturing, primarily farmers and
other intermediaries are providers of raw materials. Their task is to transfer agricultural
goods to producers.
1.3 Purpose of the report
Purpose of the report: In terms of foreign currency gain from exports and job creation,
the Frozen food business remains the most critical component of Bangladesh's
agriculture industry [ CITATION DaW16 l 1033 ]. Various global studies have estimated
that because of its available cheap cost labor and other manufacturing characteristics,
Bangladesh will be the next source of clothing for the Chinese market. This study seeks
to demonstrate China and Bangladesh's relative competitive position in the worldwide
composite apparel market for the Frozen food sector, and how its design evolved
throughout the period 2016–2020.
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7. 1.4 Organization of the report
In the first part of the report in the Introduction part, frozen food’s introduction has been
entailed as well as its importance in national exploring basket [ CITATION DaW16 l
1033 ]. In part 2 frozen food’s exporting details have been construed including the data
and change in number along with the reasons. In part 3 detailed destination of the
frozen product including the countries and regions have been construed. In part 4
Bangladeshi frozen food’s quality price, competency and the competitive advantages of
Bangladesh have been delineated.
2 Frozen food export level
2.1 Frozen food export amount and value in the last year
Exports of the frozen food sector amounted to $290 million in July-December 2020
[ CITATION DaW16 l 1033 ]. The most significant value gain was found in shrimps,
which had a 35% growth in exports at more than $331 million compared with $2 46
million in 2020, according to the Exports Promotion Bureau. Frozen fish fell 14% to 25
million dollars, compared with 29 million dollars in the previous year. Frozen exports of
goods in 2019-20 decreased 9 percent to 544 million dollars, mainly to the drop in fish
output due to crawling sickness. The imposition of further US Government taxes on
imports of shrimp from five competitive nations, including India and Vietnam, has helped
to expand Bangladeshi exports. More than 95% of total fish exports are imported by the
EU, the USA, and Japan from Bangladesh. The remainder is sold to South East Asian
and Near East nations. In 2003, shrimp exports to the EU amounted to 52,1% of the
entire market, compared with 38,6% of the US and 4,5% of Japan. The EU market is
highly important for Bangladesh's specific export industry. Any market interruption has a
serious and substantial influence on this country's export industry and a negative
multiplier effect on the national economy. During 2018-19, Shrimp earned US$ 378
million. Over the last 10 years, Bangladesh has achieved a worldwide reputation by
addressing its destinations' food safety and quality needs, in particular in the United
States and the countries of the European Union. The European Commission has
authorized 65 processing units for the export to the Member States of the European
Union of shrimp and fish products. Receiving 'traceability' laws in the EU, Bangladesh
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8. has also recently launched programs. Bangladesh also concentrated on organic shrimp
cultivation. This program is supported by the Swiss Import Promotion Program (SIPPO).
2.2 Changes in amount and value over time
Fiscal year Items Amounts (in million
pounds)
Value in million-
dollar
2019-20 Fish & Shrimp 112.15 490.5
2018-19 Fish & Shrimp 106.77 515.32
2017-18 Fish & Shrimp 107.86 459.11
2016-17 Fish & Shrimp 96.11 420.74
0
100
200
300
400
500
600
Amounts (in million pounds)
Value in million-dollar
2.3 Reasons for increasing the frozen sector of Bangladesh
The fast-paced urban life, increasing disposable money [ CITATION DaW16 l 1033 ],
desire for nuclear families with working parents, less time and effort necessary to make
frozen meals, etc. all contribute significantly to this growing acceptability for foods that
are ready to prepare for cooking. Besides: A major food processing company claims that
frozen food has the potential to overtake ready-manufactured clothing as the number
one export commodity. Ahmed argues that the European countries buy Brazil raw
ingredients for chicken goods from Australia and New Zealand in a joint venture and
meat. As the country is still developing cattle-farming infrastructure and factories at the
international level, Europe still fails to permit beef from Bangladesh. The Bangladeshi
Seamark (BD) President said that a system to promote the export of shrimp is in place,
and poultry or cattle also require such a mechanism. The frozen food industry has an
enormous perspective here, and the NRBs in the UK may make a significant
contribution to the Bangladesh economy if the friendly climate of investment is prevalent.
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9. 2.4 Future exportable frozen items
 Frozen shrimp and crevasses.
 Frozen fish. Frozen fish.
 Chilled and fresh seafood.
 Frozen fish fillets and steaks, shark skates and rays.
 Fish maws and shark fins.
 Fish that is salted and dehydrated.
 Dried fish. Dried fish.
 Live crabs and turtles.
 Fish foods & snacks.
 Shrimp and fish products increased value.
3 Destination of exportable frozen food
3.1 Main Bangladesh destination for frozen food
Around 84% of frozen shrimp was shipped to the global market from Bangladesh during
the fiscal years 2019-2020, but in the same fiscal year, just 16% of frozen fish were
exported [ CITATION DaW16 l 1033 ]. In that year, the UK and Belgium constituted 28
percent of total exports to the highest market for Bangladesh's frozen food. The second
figure is likewise from EU nations, Germany and the Netherlands, 20 percent of
Bangladesh's overall export of frozen food. For the fiscal year 2019-2020, the new rising
markets were the US, Russia, and France in 2014-2015 from July-December, which
exported US$20,488,000.00, US$18,964,000, and US$16,910,000. In the fiscal year
2018-2019, there has been no space for Canada mong thirteen frozen food export
destinations, presently there has been the exportation of a new market for 3,068,000
US$ from July-December in the year 2016-2017. The Export Promotion Bureau reports
that the maximum frozen food export area for the world market from Bangladesh during
the period amounted to 80518 thousand US dollars for Belgium, 62132 thousand US
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10. dollars for the Netherlands, 55742 000 USD for the UK, 38785 000 US Dollars for
Germany, 20488 billion US dollars for the USA, 18964 thousand US dollars for Russia,
16910 thousand USD for France. China, with 7306,000 USD, Denmark, 5717,000 USD,
Saudi Arabia, 5163,000USD, Portugal, 5015,000 USD, Hong Kong, 3443,000 USD, and
UAE, 3392,000USD were the other thriving markets for frozen food and exports. This
industry thus has a high chance of establishing a new market.
3.2 Frozen food products destination
The Shrimp business has recognized the Bangladesh Food Exports Association
(BFFEA), under the second Five Year Plan (FYP), beginning and starting [ CITATION
DaW16 l 1033 ]. The BFFEA is the sole commercial organization in Bangladesh for
members of fish processors. From the very inception of BFFEA, Frozen food processors
and packers and country exporters have worked to promote and safeguard the interests
of Frozen food processors. BFF is also committed to building and maintaining a cozy
relationship with the future international purchasers, corporate associations and the
trade and industrial chamber to grow its export marketing to world markets. Frozen
Foods The exports to the European Union, America (North and South America), Russia,
the Middle East, and Asia are largely made from 10 frozen food products from
Bangladesh. Private and governmental exports of frozen food. Frozen food name:
 Shrimp and Prawn frozen.
 Frozen fish. Frozen fish.
 Chilled Fish & Fresh Fish.
 Sharks Shells Skates and Rays Frozen Filets & Fish Steaks.
 Fish Maws & Shark Fins.
 Fish dehydrated and salted.
 Live Crabs and Tortoises Dry Fish 8 Live.
 Meals of fish & crushed. meals of fish.
 Shrimp & Fish Product Value Added.
The primary goods and the second biggest export items from Bangladesh are frozen
shrimp and frozen fish. Around 84% of frozen shrimp was shipped to the global market
from Bangladesh during the fiscal years 2019-2020, but in the same fiscal year, just
16% of frozen fish were exported.
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11. 3.3 Emerging opportunities
Frozen food is Bangladesh's second-largest exporter with a total value of Tk4731.76 in
2019-20. Commercial shrimp cultivation in the Bangladesh Coastal Belt developed fast
and was transformed in various phases [ CITATION DaW16 l 1033 ]. In recent decades,
a worldwide reputation has been gained by Bangladesh in responding, mainly in the
United States and in the European Union, to food safety and quality standards for its
destinations. Continuous investment has made it possible for the industry to progress in
other nations' fangs of competition. A rising number of individuals lead a hectic daily life,
leaning increasingly towards frozen meals. This is a good chance for Euro Food to
advertise its product line. Other items including singara packed, samosa, and seafood
have been marketed by the firm for some time. Euro Food exports 95% of its goods. Of
the 300 goods produced by the firm, just 30 are offered across the city in different mega
stores. Many additional firms display their selection of frozen food goods. On the first
day of the exhibition, customers have been made popular with packed frozen paratha,
roti, chicken roll, chicken nugget, popcorn, Samosa, singara, and other varieties of
pithas. In addition, several Chinese, Vietnamese, Thai, and Malaysian firms
demonstrate their industry-related technologies. Employers claimed that using this
technology will contribute to improved quality production in Bangladesh. Bangladesh
Chairman of the Bangladesh Food Safety Authority Syeda Sarwar Jahan urged
everyone not to use chromate in turmeric powder, "Health-harmful ingredient must not
be utilized in food items.
3.4 Probable causes for exporting in particular regions
Worldwide, the cold chain sector grows quickly [ CITATION DaW16 l 1033 ]. There is
increasing urbanization in the world which promotes the commodity culture of food.
Around 4 percent increase in 2010 above $192 billion as reported by the worldwide
frozen food sector. The market is anticipated to grow by 19% by the end of 2015 more
than 228 billion dollars over the following five years. The market is anticipated to
increase by more than 14% over the same period to approximately 43,5 billion kilos in
terms of volume. Reasons:
 Although comfortable and easy to use, many customers are still unable to rely
entirely on frozen food because of a lack of monitoring and quality regulations
[ CITATION DaW16 l 1033 ]. Although authorities may conduct various mobile
tribunals sometimes, the standardization of processed, frozen food items still has
to come under their control by either the Bangladesh Standards and Testing
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12. Institution (BSTI) or the Bangladesh Food Safety Authority. In this situation,
consumers must depend exclusively on assurances from the frozen food
companies which state that they have their quality assurance process. ISO,
HALAL, are some certificates requested by frozen food producers.
 The absence of dependence on messaging and delivery services with increasing
popularity has increased simultaneously [ CITATION DaW16 l 1033 ].
 A 12-month shelf-life of frozen food should be cooled at -18 degrees Celsius
[ CITATION DaW16 l 1033 ]. The merchants have problems regularly maintaining
a suitable temperature once they get the products from the firm that impact the
quality of the product.
4 Bangladesh Frozen Food Export Reasons
4.1 Trading foundation for Bangladeshi frozen food
The stress on export expansion in manufactured nations has its roots in the notion that
manufactured items have certain fundamental qualities that lead to greater growth
performance in comparison to basic commodities [ CITATION DaW16 l 1033 ]. As such,
the terms of trade advantages, know-how, and technological depletion are among the
most highlighted features. However, in general, based on conventional trading theory,
the employment potential of resource-based manufacturing is that an abundance of
labor is not one essential factor in the international production of comparative
advantage. Bangladesh's overall area is 147,570 km2, and the population is 160 million.
Bangladesh Frozen Foods Export Association (BFFEA, 2014) reports that there are
1,60,13,000, directly and indirectly, dependent on the industry, i.e. shrimp and fish
farmers, for a 5-fold increase. In Bangladesh, there are two kinds of fish stocks: In terms
of capacity testing of frozen products from Bangladesh, it begins with the Fish
Inspection and Quality Control Ordinance, and the fisheries department is starting to
operate as a regulatory agency. Three microbiological laboratories were set up in
Dhaka, Khulna, and Chittagong. This sector had difficulty since there was no HACCP-
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13. based quality system. The processing facilities have thus been updated and the quality
control system enhanced. Efficient chemical testing installations have been
implemented and the first LC-MS-MS system in a Dhaka laboratory has been
established, followed by chemical analysis in the early stages of Dhaka laboratories, to
meet EU standards. Exporting companies have gained credence and confidence in the
global market and dedicate themselves to retaining a competitive edge in product
quality. The industry's plan to address the difficulties of international commerce in
prices, quality, time, and service remains at the forefront of ongoing investments in
technology, marketing, and quality.
4.2 Competitors of Bangladesh regarding exporting frozen foods
In this industry, there are no foreign investors [ CITATION DaW16 l 1033 ]. Bangladesh,
with enormous human resources and a cheap labor cost, may entice international
companies to invest in Bangladesh. The government can thus play a crucial role in
attracting international investors to this industry. They issued a study in 2019 stating that
Bangladesh is the second-largest country in the world in terms of investment. The major
reason why manufacturing costs are cheaper is that the competing nations' workers'
salaries are lower. In addition to the other competing nations such as Japan, Thailand,
Indonesia, India, China, Vietnam, and Sri Lanka, Bangladesh will also maintain the top
priority, based on manufacturing costs. The research shows the lowest production costs,
which is just 48.7 percent, in Bangladesh. Where Sri Lanka remains at 70,8% of the
nearest competitive cost of manufacturing. In comparison to productive Bangladesh
costs, Sri Lanka is nearly more than 22 percent more. Production costs are 78.5% in
India and Indonesia, 77.8% in China, and 73.2% in Vietnam compared with Japan.
4.3 Competitive advantages of Bangladesh
The country's comparative advantage would appear to be the strongest explanation of
competition from frozen food producers from Bangladesh [ CITATION DaW16 l 1033 ].
It is a workforce with a wide base of unqualified and partly qualified workers with very
low salaries. It has gained skills in the frozen industry, particularly CM in the previous
three decades. A relatively quick expansion in population has meant that there are
always a significant number of underemployed or jobless, preventing a rise in the wage
rate. The frozen producers of the country, therefore, have very low pay for their
employees. Bangladesh frozen sector workers have one of the lowest average hourly
income rates in the world.
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14. 5. Challenges faced in export of frozen food
5.1. Type of challenges facing Bangladesh in exporting frozen food
The water body in Bangladesh is suited for the production of fish, the most important
resource of the freshwater ecosystem. Bangladesh ranks third among the world's largest
inland fish producing countries after China and India. Fish is the prime resource of
animal protein consumption in Bangladesh contributing to about 60 percent of the per
capita animal intake in the diet of the people of Bangladesh. Total water area under
inland fisheries is about 5.3 Million hectors where 92.27 percent is inland open water,
7.73 percent is inland closed water. Actually, the frozen food is one of major contributor
to the overseas exchange incomes and is in the fourth position amongst the export
items in terms of total export earnings. In Bangladesh, frozen food used to be mainly
shrimp and fish, and shrimp contributed to the majority of earnings from the frozen food.
Export Trend (July-February, 2014-2015)
S
L
Items Exports Percentage Trends
1 Garment $16.55 Bn 2.56% Upwards
2 Jute & Jute goods $569.01 Mn 6.40% Upwards
3 Leather & Leather
goods
$740 Mn 0.54% Upwards
4 Frozen goods $429.35 Mn 6.32% Downwards
Nevertheless, in recent years, the frozen food business has become branch out, and
traditional thinking about it has also changed. In Bangladesh, it has been developing
based on the fishery along with processed meat and chicken. Frozen food has the
potential to overtake the number one export item of Bangladesh readymade garments. It
has the capacity to earn several times higher revenue than what the garments do.
People need at best two new shirts a month, but they take either meat or fish every day.
But there are challenges that the country has to face to export these frozen foods.
The challenges are two types:
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15.  Demand side challenges
 Supply side challenges
5.2. Demand side challenges
There can be different issues in the demand side. Some of which are competition,
health, hygiene issues etc.
 Competitions: the Bangladeshi frozen food market is combined. There are some
international and local players. Some of the noticeable players in the industry are
Golden Harvest, Pran Group, AG Group, RFL Group, Bengal Meat, Kazi Farms
and BRAC. In the homegrown market, Golden Harvest is leading with 23%
market share followed by, Pran, Kazi Farm, Rich Food and CP. Due to availability
of the products at nearby retail shops, online platforms, low switching cost and
department stores subsidized to the rising sales of these companies. Besides the
producers, suppliers of raw ingredients in the production chiefly include farmers
and other traders/middleman. Their job is to do the transmission smoothly from
farm supplies to the manufacturers.
 Hygiene: the Food Safety Hygiene Regulations, 2018 standardizes and guides
various sanitation and hygiene issues like hygiene of food processing
establishment, health guidance for health workers, rules of cleaning drainage
system, gears used for food processing, and storage. The regulation helps BFSA
to raise responsiveness about waste management at home and processing
industry, water supply to the food processing factory, food and food material
carriage, use of food wrapping and packing, controlling high temperature in food
preservation, and conditions applicable for selling street food.
 Covid-19: The demand for frozen shrimp and similar food items has fallen
dramatically in western countries, Bangladesh's main export market, due to the
ongoing Covid-19 pandemic. Traders have been exploring Russia and China as
potential export destinations over the past few years but the Covid-19 outbreak
has laid waste to consumer demand in both nations. Not only did this lead to a
decline in shipments but also got international buyers, who were mostly
European, to either return or cancel several consignments of frozen food items
amounting to Tk 460 crore in value.
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16.  Health: according to the regulatory analysis of HACCP, the health and hygiene
practice abide by the worker of the visited areas are sometime not properly
maintain in some steps due to lack of knowledge and strong monitoring system.
The IQF Cooked Headless Shell-on Shrimp, Cooked PUD IQF Shrimp and
Shrimp Skewer maintain 92.29% of hygiene practice because they come less
time in contact of worker comparatively whereas Shell on Block Frozen Shrimp
are maintain 89.2%. The male workers are doing heavier work (receiving of raw
material, weighting, storing, shipment) and less sincere about the personal
hygiene (using aprons, cap, mask, hand gloves). In some cases, both male and
female worker are not only illiterate but also unconscious about personal hygiene,
standardization, food safety and quality.
5.3. Supply side challenges
Bangladesh is an proud agricultural country. Recently some agro-based industries have
been set up. Agriculture has always been given priority and as a result industries have
been ignored . There are some reasons for which the country has lagged behind in
heavy and medium-level Industries. Industrialization in Bangladesh faces some
challenges due to some structural constraints that hindered industrial growth. Let us
now consider the challenges faced by the supply side.
 Regulations: Bangladesh has Use of Food Additives Regulations, 2017, enacted
in February 2017 and over sighted by BFSA, Ministry of Food and Bangladesh
Standard and Testing Institute (BSTI), Ministry of Industry. The regulations
include a list of the positive additives that are permitted for use in food. The
authorized uses of additives are listed in English according to the category of
additives such as color, preservatives, flavor enhancer, antioxidant, stabilizer,
non-nutritive agent, sweetener, acid or acidity regulator, antifoaming agent,
foaming agent, firming agent, thickener, anti-caking agent, sequestrate, gelling
agent, emulsifier, bulking agent, flour treatment agent, glazing agent, humectant,
raising agent, and propellant. The level or amount of additive to be used in food
produced locally is approved by BSTI and they follow the Standards Catalogue,
2018 of BSTI, CODEX standard, and ISO standards. If new additives that are
used are not available in the Bangladesh Standards (Bangladesh Standards and
Testing Institution Ordinance, 1985, Section 2(1)(b)) or any other rules, then the
permissible level should be followed based on Codex Aliment Arius standards for
Food Additive 1992-1995 or other intentionally approved standards.
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17.  Lack of adequate capital: Bangladesh being a poor country, people’s saving is
insufficient. As saving is poor, investment is also low. Again people’s per capita
income is not adequate. So their consumption is also low. Consequently local
market oriented industries are also very thin here.
 Weak investment base: Due to long colonial rule, economic discrimination and
postliberation nationalization of industrialization, the growth of entrepreneurship
has been slow in Bangladesh. Besides, due to bureaucratic red-tapes and lack of
investment climate, capital investment has not been developed here.
 Insufficient Infrastructure: Infrastructural services in our country are
inadequate. Power supply, telecommunication, transport, gas, water supply etc. –
all facilities are not sufficient which have hindered process of industrialization in
Bangladesh.
 Shortage of Energy: acute shortage of energy and unreliable supply of power
and other utilities such as gas and water.
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18. 6. Suggestions to overcome challenges
6.1. What can be done to overcome challenges
The frozen food of Bangladesh has a challenge to keep its sustainable growth. To attain
the vision 2021 private, public and private-public sector should come forward to
overcome the present infrastructure crisis. However, due to overcome the challenge and
the crisis of the frozen foods of Bangladesh the following suggestion may consider:
• To create new policy, new exporting destination, introducing to the world market
as a new product,
• To find foreign investor for development of the sector, keeping stable political
atmosphere, development of pertinent infrastructure and introducing labour law
following by ILO and practice accordingly.
• The proper human resource management can play a vital role to take the sector
vibrant. Skilled, innovative and committed labour can make dramatic change in
the business performance and sustainability (Agarwala, 2011; Nankervis &
Compton, 2002). Labour satisfaction of this sector can play an important role for
higher growth and productivity (Rubel & Kee, 2013; Shabnam & Sarker, 2012).
An unhappy labour will never work for progress and prosperity however,
dissatisfied worker create unrest (Hossan et al., 2012; Noe et al., 2007). So,
satisfaction of frozen food worker is also important to overcome the challenges.
Adequate salary, bonus and admissible benefit may satisfy the shrimp and fish
worker. In order to ensure the frozen food worker safety and build their legitimate
rights telephone helpline may introduce for mitigate their grievance. Directorate of
Labour (DL) may open a new wing under the supervision of DL to receive
aggrieved worker complain call and can suggest accordingly. It will play a better
role for mitigate the grievance or workers.
• Introducing frozen food product i.e. frozen shrimp to the world market can play a
positive role for overcoming the existing challenge. As GSP facility has
suspended for readymade garment export from June 2013 to the American
market, frozen shrimp can take over the same market as a quality foods.
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19. 6.2. Role of government
Government of Bangladesh may consider funds in upcoming FY budget 2014-2015 for
financial assistance. In order to technical assistance and improve this sector
Department of Fisheries (DoF) also can play a vital role.
 Government subsidy can play a significant role model as a motivation of the
shrimp farmer.
 Government can allocate bank loan in a soft condition and lower rate like 6 to 7
per cent interest to the investor specially shrimp farmer. Even though, the bad
loan practices discourage bank authorities to sanction loan in favor of
businessman. According to Bangladesh Bank, in 2014, bank made operational
profit $212.65 billion (Tk. 21 265 crores). It was almost 17% profit dropped on
year-on-year in 2014 due bad lone practice. However, it should monitor that how
many shrimp farmer has been defaulting to pay bank loan.
 Reduction of electricity bill, exemption of tax and duty on shrimp feed and
introduction of cash incentive for shrimp farmers may consider for the sustainable
development of this sector.
7. Summary and conclusions
There are around two thousand species of the real shrimp are known in the world.
America is the biggest shrimp buyer in the world, importing more than 5 000 000
tones in a year. Japan imports around 250 000 tones and four European shrimp
importing countries are France, the UK, Spain and Italy together they import near
about 5 000000 tones annually. Thailand is the largest producer of shrimp in the
world. Bangladesh is also leg behind China, Vietnam and India in terms of shrimp
production. About 75 per cent of farmed shrimp is produced in Asia. The other 25% is
produced mainly Latin America, where Brazil is the biggest producer. The growth of
shrimp production in Bangladesh is not remarkable despite of huge demand and scope
of the world market. Notwithstanding the fact, however, it contributes to our poverty
mitigation, employment generation and export earnings. Among the various items of
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20. frozen foods, only shrimp item contribute about 90% of the total export earnings from
the frozen foods export of Bangladesh. In spite of positive contributions, the shrimp
industry is not beyond the criticisms- legal and social including labour issues,
environmental sustainability, and food safety i.e. farmer use unpreserved and
hazardous chemical highly risk for human health. So therefore, it is essential for
government and non-government to support such as soft loan, training, good
infrastructure, virus free fry and quality feed supply to ensure good harvesting. In
addition to identify and finding the lapse and lacuna of proper shrimp and fish
cultivation practice, effective strategy and awareness development among the
stakeholders as well as address national and inter criticism may keep this sector stable
and sustainable developed.
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