DHAKA Bangladesh's frozen food exporters are upbeat about their future as the sector recorded a 25 percent growth in the last year to June after several years of downtrend.
"We have overcome our limitations and reversed the downtrend in exports. We expect a further rise in exports in the coming years," Abul Bashar, chief executive of the Bangladesh Frozen Food Exporters' Association told AFP.
He said a 1997 ban on frozen food exports imposed by the European Union (EU) on the grounds of poor hygienic conditions in Bangladesh's processing plants led to the downtrend.
"We have upgraded our plants in line with the EU standard subsequently and managed to raise the exports again," he added.
The EU sanction was withdrawn from 44 of the 58 plants the same year.
The sector, which also exceeded its export target by 16 percent, fetched nearly $344 million during the last fiscal year, which ended in June.
Earnings from the country's second-largest export sector, after the readymade garment industry, which was $273 million in 1996-1997, fell to $266 million in 1997-1998 and $263 million in 1998-1999.
A record shrimp production totalling 28,000 tons and an early maturity of shrimp were among the factors that led to the growth in export earnings despite a slump in prices in the international market, sources in the industry said.
The average annual shrimp production in Bangladesh is around 25,000 tons.
Volume of total fish exports rose to 74.23 million pounds (33.40 million kilograms) in the last fiscal year compared to 58.35 million pounds the previous year. The figure included 62.73 million pounds of shrimp and 11.50 million pounds of other fish.
The price of shrimp came down to $5.14 per pound from $5.47 a year ago in the international market, while the price of other frozen fish declined to $1.86 per pound from $2.28.
To raise the export of ready-to-eat shrimps, which fetches higher prices, the processing plants need to be modernized, he said, adding this would need government support in getting bank loans on easy terms.