The shrimp industry is a major contributor to Bangladesh's economy, earning thousands of millions of dollars annually in exports. In 2005, shrimp was the fourth largest export, with a 7.3% share of total exports. By 2009, Bangladesh was exporting over 32,500 metric tons of shrimp valued at $363 million annually. However, the industry faces several challenges, including natural disasters that damage shrimp farms, bans by the EU, shortages of raw materials, economic recessions reducing demand, and disease outbreaks affecting consumer behavior. Despite obstacles, the industry has continued to improve practices with assistance from partners to strengthen its global competitiveness and position Bangladesh as a producer of quality seafood exports.

1. An Overview about Shrimp Industry of Bangladesh
Bangladesh shrimp industry is major contributor among the major products which give foreign
currency for Bangladesh. Every year this industry earns thousands of million dollar foreign
currency from the USA and European Union. In 2005, the fourth leading export item in
Bangladesh was frozen shrimp and fish, with a 7.3 percent share of the total export market.
Every year Bangladesh earns on an average of 456.48million (32559.32million taka) dollars
which the export of the shrimp to the foreign countries is the approximately 50% of the
Bangladesh export from Bangladesh’s exports, the United States at 23–38 percent, and Japan at
15–26 percent, depending on the year. By 2008, the Bangladesh shrimp processing industry had
invested $17.6 million in plant upgrades, the government had invested $382,000 in laboratory
and personnel upgrades, and outside partners had invested $72,000 in training programs in
Bangladesh. A collective effort by the industry, the Bangladesh Department of Fisheries, and the
Bangladesh Frozen Food Exporters Association has continued to strengthen the export-
processing sector. By 2009, out of 65plants licensed for export by the government, 48 plants had
EU approval. Improvements in food safety have thus set the stage for Bangladesh to become
more competitive in the global market for sea food. Moreover, improvements in the shrimp
sector have undoubtedly impacted the seafood and food-processing sectors as a whole, due to the
intertwined nature of the food-process in industries in the country. Although in 2002 Bangladeshi
shrimp exporters did experience some safety problems, but it overcome by establishing testing
laboratories and safety plans. A large number of export processors are now producing increasing
amounts of value-added products such as individually quick-frozen, peeled and deveined, and
butterfly cut shrimp, as well as cooked products. In 2009 these value-added exports made up
almost 25 percent of the total exports of 32,500 metric tons, valued at $363 million. Technical
assistance from FAO and INFOFISH continues to play a role in industry development by
transferring simple, low-cost technologies for adding value and by matching buyers and sellers to
facilitate market diversification. Sea food Industry and the government also continue to upgrade
the export sector as a whole. Developing countries like Bangladesh can often compete in world
food commodity markets because export products can be produced at a lower cost than in
developed countries provided the product can meet minimum safety and quality standards. To

2. accomplish this, developing countries need assistance not only with technology, but also with
training workers to use technology and conform to world food-handling, sanitation, and personal
hygiene standards. This normally requires a cooperative effort between a country’s industry and
government and its external partners. The Bangladeshi shrimp and food export case demonstrates
that these efforts can be successful. It shows that developing countries like Bangladesh, with
careful guidance and focused effort, can successfully face the challenges of the global market
which can lead to the Bangladesh Shrimp Industry as a maximum profitable sector for the
Bangladesh economy.
Number of Listed Food Companies in DSE & CSE
Gemini Sea Food limited is listed under food category of Dhaka and Chittagong Stock Exchange.
The name of the listed companies under this category is given below:
1. AMCL(PRAN)
2. APEXFOODS( Apex Foods )
3. BANGAS( Bangas )
4. BATBC( BATBC )
5. BEACHHATCH (Beach Hatchery Ltd. )
6. CTGVEG( Chittagong Vegetable )
7. FINEFOODS( Fine Foods Limited )
8. FUWANGFOOD( Fu Wang Food )
9. GEMINISEA( Gemini Sea Food )
10. MEGCONMILK( Meghna Condensed Milk )
11. MEGHNAPET( Meghna Pet Industries )
12. NTC( National Tea )
13. RAHIMAFOOD( Rahima Food )
14. RDFOOD ( Rangpur Dairy & Food Products Ltd. )
15. SHYAMPSUG ( Shyampur Sugar Mills Ltd. )
16. ZEALBANGLA (Zeal Bangla Sugar Mills Ltd. )

3. A general Overview of Gemini Sea Food Ltd
Gemini Sea Food Ltd., a leading shrimp processing factory, came into being in the year 1982.
Since its inception it have produced, processed, packed and exported the highest quality
traditional block frozen shrimps.
In 2002, it incorporated a Cooking and Counter Cooling system, an IQF Spiral Freezer, a
Vibrating Glazer and an IQF after Freezer/Hardener into our processing line. This investment has
tremendously diversified our production line.
Legal form of the Enterprise
The GEMINI SEA FOOD LTD is a Public Limited Company registered under the companies
Act, 1913. The Company was incorporated in Bangladesh on 16 September 1982 and they are in
the sea food business for about 28 years. Shares of the company are listed in the foods category
of Dhaka Stock Exchange.
Nature of Business Activities
The Company owns and operates a modern Shrimps Processing Plant and Exports 100% of its
products in the foreign markets.
 The main Vision of the GEMINI SEA FOOD LTD is “Defining Standards in Innovation
and Service.”
 GEMINI SEA FOOD LTD’s mission is serving the needs of consumers and businesses
in growth segments profitability by providing:
 Quality products & services to their customers.
 A satisfying work environment to our staff.
 Fair, respectful and consistent working relations to its
suppliers and channel partners.
 Profitable and respectable growth to its shareholders.

4. Date of Incorporation: 16th September, 1982
Date of Operation: 3th August, 1984
Brand Name: “MEENA” & Gemini”
Products:
a. HEADLESS SHELL-ON (HLSO)
b. PEELED AND DEVEINED (P&D)
c. PEELED AND UNDEVEINED (P&D)
d. HEADON SHEELON SEMI IQF
e. SKEWER SEMI IQF
f. BUTTERFLY IQF
g. EZYPEEL IQF
h. COOKED AND BLANCHED IQF
Sources of Raw Materials:
The Company processes the firm raised shrimps received from the Government FIQC approved
sources only. All these shrimps are naturally cultured.
Machines and Equipment:
The Company is equipped with world class and best possible equipments like
a. plate Freezer Gram(Denmark)
b. Cooker, chiller, Spiral IQF Freezer,
c. Glazer and Hardener: Carnitech
(Denmark)
d. Generators: Cummins (USA)

5. Quality Control:
The Company possesses a very well set and equipped laboratory with highly professionals
capable of carrying out all essential tests and checks required to ensure best possible hygienic
products conforming to the standards as per HACCP. This company has green ticketed with the
US FDA and EU approval. It is registered with the US FDA pursuant to Section 305 of the US
Public Health Security and Bio-terrorism Preparedness and Response Act of 2002 PL 107-188, as
of 19 Nov, 2003.
Production Capacity (Daily): a.Block; 15Tons
b.IQF:10 Tons
HACCP By FIQC<Since 1998
EU (European Union) Approval NO. : KLN-14
US FDA Code: BK-14
US Public Health Security & Bio-terrorism Registration No: 12525970880
BRC Global Standard-Food Certificate NO: GBO8/74364
IFS Certificate No.: DE 08/61818917
Associates of Gemini Sea Food Ltd.:
 Meena Bazar  A leading supermarket supplying organic produce.
 Gemcon Limited 
The largest producer of SPC electric poles and
concrete railway sleepers in Bangladesh.
 Charka Steel Ltd. 
The only factory in Bangladesh to draw high
carbon steel wire and rods.
 Kazi & Kazi Tea Estate Ltd A fully organic tea estate located in northern

6. Ltd. Bangladesh.
 Castle Construction Co.
Ltd.

Consultants and contractors of civil, mechanical,
electrical, process engineering, mining &
hydrocarbon, as well as a producer of SPC electric
poles.
Return On Equity Ratio of the Gemini Sea Food Limited
The Return on Equity is calculated Net Income/Shareholder’s equity of the Gemini Sea Food
Limited. The 6 year’s ROE are given below in the table:
Foreign Direct Investment Received By the Gemini Sea Food Ltd
Every year Gemini Sea Food Ltd receivess FDI (foreign direct investment) from a US food
company as a major exporter of shrimp in the USA and EU market of the world. As a result, it is
able to run smoothly the flow of business. The FDI received by the Gemini Sea Food Ltd from
2005 to 2006 have prearranged below:
Year 2005 2006 2007 2008 2009 2010
Return on
Equity
0.35 0.56 1.11 1.06 1.01 0.089
Year 2005 2006 2007 2008 2009 2010
FDI(in tk) 253265500 3373265700 3373265700 295265600 293265600 398265700

7. Obstacles of the Bangladesh Shrimp Industry
The shrimp industry is encountering so many impediments in Bangladesh especially in this
decade. In last few years 2009 was a challenging for shrimp industries because of some
impediments i.e. Natural calamity, global economic condition and swine flu etc. were major
obstacles in the shrimp market.
Major obstacles of shrimp industry are given in the subsequently:
Natural Calamity:
National calamity is the most long-suffering obstacles for the growth of the shrimp industry of
Bangladesh. Every year shrimp enclosures are washed way because of devastating natural
calamities. Because shrimp are enclosures are in sea side area in Bangladesh so because of
unpredictable natural calamities every year shrimp industry incurring an enormous loss in
profitability and business maneuver. The uppermost losses encountered by the shrimp industry
in some years are given below-
 In 2009 natural calamity, Cyclone Aila hit southwest part of the country on 25th May
2009; fierce tidal surge of Aila seriously damaged mainly the shrimp firms in Khulna,
Satkhira area and washed away most of the shrimp enclosures in the area. The
calamity stands a huge loss about 2707 tons of shrimp in 7117 shrimp enclosures
washed away by tidal surge of Aila. Shrimp fries worth taka 3.90 crore were washed
away in the cyclone while the loss of shrimp and damage to shrimp enclosures has
been estimated at tk 93.21 crore and tk 24.39 crore respectively.
 In 2007, SIDR hit the coastal areas in the Southwest part of the country in November
2007.Despite human life and assets losses that left lasting and painful impact for
overall shrimp industry for about taka 200.2 crore. In the southwest area mainly
consists with Khulna, Satkhira & Bagerhat that are main victims of the said calamity.
Those areas are major for shrimp cultivation which makes serious setback for
procurement of shrimp as required for the export.

8. Although it is impossible to get rid of from the natural calamity, if major steps are taken to
safeguard the shrimp enclosures against those calamities than losses could be minimized.
EU countries ban:
Over the many years the shrimp industry has been hampered in terms of sales & profit because
of the EU’s regular ban which is a one of the major hindrance of the shrimp industry. Some EU
bans in shrimp industry are given on top of the next page:
 EU countries ban in 2009 in fresh water shrimp from Bangladesh for six months to
export in those countries against allegation that Bangladeshi products bear Nitro furan
in shrimps that also hindered shrimp business.
 On July 30, 1997, the EU banned imports of fishery products from Bangladesh as a result
of EU inspections of Bangladesh’s seafood processing plants. Inspections found serious
deficiencies in the infrastructure and hygiene in processing establishments and
insufficient guarantees of quality control by Bangladeshi government inspectors. The ban
was estimated to cost the Bangladesh shrimp-processing sector nearly US$15million in
lost revenues from August to December 1997. (In this brief all dollars are US dollars.)
The impact on both the industry and the economy of Bangladesh was substantial.
The actions taken to build proper safety assurance and than EU’s ban losses would be reduced.
The only way Bangladesh can improve its export position in the shrimp market is to improve the
safety assurance, quality, and of food standard of its exports. Safety improvements over the last
two decades, with a major effort in the late 1990s and in2000 to 2010, have been made by the
industry and government, and by bilateral and multilateral agencies providing technical
assistance. Maintaining those standards also incurs a huge cost for the industry. Research has
also determined that the annual recurring costs to maintain HACCP programs and meet
international standards would be $2.2 million for industry and $225,000 for government.

9. Shortage of Raw Materials (Shrimp):
There is one more difficulty faced by the shrimp industry is the shortage of raw material every
year. Constant scarcity of raw materials are encountering by the company as the number of
processing plant is higher than raw materials available in Bangladesh. The revamped factories,
having greater capacity, are mostly operating at about 20 percent of capacity due to limited
supplies of shrimp. This has resulted in a growing focus on sustainability in the production sector
with increased emphasis on hatchery production of shrimp post larvae for seeding the ponds,
rather than harvesting from natural stocks. As hatchery production expands, Bangladesh has also
placed increased emphasis on good aquaculture practices as well as certification of aquaculture
Facilities. As a result, Government needs to pay more attention to the factor to keep the
processing plant keep out of risk in current market economy of the world.
Global Economic Recession and the Downward Economy:
Another major concern of this industry is the global recession and the downward economy of
USA and EU which affects goes in food crisis, tentativeness in investment and resultantly
purchasing power of those countries are dropped down globally and specifically in the
developed country (USA, EU) who are the main buyer of shrimp.
Irregular Payment of subsidy
Insufficient operating capital due to non release of the subsidy money by Bangladesh Bank
caused different tribulations in the business.Failure to get the subsidy in due time forced the
industry to borrow from financial institutes which increase the company’s expenditure.On the
other hand,processing plant need to pay the subsidy to the farmers at the time of purchasing
raw materials.

10. Dropping Price of shrimp
There is a another problem which hamper the business operation of the shrimp industry is the
weaken of the international market price because of the recession of the USA market influence
the overall economy of the international market directly and indirectly.Because it reduce the
price for mid to large size shrimp and price stable foe below-mid size shrimps that curtail the
profitability of the industry.
Spread of diseases
A further difficulty faced by this industry is the spread of diseases like Swine-flu and Bird-flu.
These diseases affected shrimp business directly in the developed countries, because people
avoid supermarket and restaurants. Tourists travel less than actual due to the virus threat.
These also shrink the market demand of shrimp.
Limited diversification range of products
Another challenge for this industry is limited diversification in terms of both ranges of products
and the markets. Although a large number of export processors are now producing increasing
amounts of value-added products such as individually quick-frozen, peeled and deveined, and
butterfly cut shrimp, as well as cooked products, the diversification of the products is limited
only on the few products of this industry
Unpredictable & Unstable Political Crisis:
The present unpredictable and unstable political situation of the world is becoming a major
obstacle for the shrimp industry of Bangladesh. The political hazard of the world making the
shrimp industry of Bangladesh more shrivel than what it is supposed to be in regular time. For
example, warfare in Afghanistan, Iraq made the shrimp industry sales and profits to reduce
because the business transactions in those countries become impossible. Now a days world
upheaval economic situation because of the back to back middle east crisis in most of the
middle east country making the shrimp industry out of the question to expand maneuver those
overseas excluding USA and EU nations food markets.

11. Conclusion
To conclude, Bangladesh exports thousands of the products to the foreign countries which earn
for Bangladesh millions of foreign currency. Among the export products shrimp industry export
provide for about 45%to 50% of its total exports. Subsequently, Shrimp industry is one of the
most influential industries among the foreign export products. There are many firms (listed &
unlisted) which is in the shrimp production and export business. Among them since inception
Gemini Sea Food Limited is a renowned company which contributes thousands of millions
dollars in the shrimp production and export of the overall shrimp industry of the Bangladesh. It
is listed in the Dhaka Stock Exchange in the category of food industry. Gemini Sea Food Limited
is for about 28 years in the shrimp production and export business since 1982. On the whole,
according to the appraisal of analysis and findings of the annual financial report from 2005 to
2010 of the Gemini Sea Food Limited is can be presume that this company is encompassing on
an average financial condition. The dividend payout ratio, return on equity, turnover,
profitability, foreign direct investment received by the company all are in a good balance
position of this company. There are many obstacles faced by the company as a member of the
shrimp industry of Bangladesh like natural calamity, EU countries ban, limited diversification
range of products, irregular payment of subsidy, limited diversification range of products,
dropping price of shrimp, global economic recession and the downward economy, dropping
price of shrimp, unpredictable & unstable political crisis and spread of diseases and many more.
If proper incentive and guideline could provide to the industry than those obstacles and
subsequent losses could be minimized. This normally requires a cooperative effort between a
country’s industry and government and its external partners. The Bangladeshi shrimp export case
demonstrates that these efforts can be successful. It shows that developing countries like
Bangladesh, with careful guidance and focused effort, can successfully face the challenges of the
global market.