Battle Of Minds 2007, Khulna University

Reviving Shrimp Industry In Khulna

TOP STORIES

K Consulting group proposed a grand plan for reviving shrimp industry in Khulna

Shrimp in Khulna can not sustain a long - Prothom Alo

TOP STORIES

Khulna still promises sustainable shrimp cultivation

TOP STORIES

Some countries succeed in shrimp culture tremendously

TOP STORIES

A rocking Shrimp industry cluster has been proposed by K consulting group

TOP STORIES

Shrimp can work wonder

TOP STORIES

K consulting group proposed a plan to revive Shrimp Industry

Sustainability Matters??

Biodiversity Loss

Salinity

Mangrove

Long - term Production

Sustainability considerations-

ENVIRONMENT

ECONOMIC

SOCIAL

Sustainability considerations-ENVIRONMENT

ECONOMIC

SOCIAL

Sustainability considerations-EN

VIR

ON

MEN

T

Sustainability considerations-EC

ON

OM

IC

GDP Contribution- 0.8% (2006)Employment Generation- 765960 (2005)

GDP Contribution- 2.5% (2015)Employment Generation- More than 100000 (2015)

Increase in per capita income, employment generation, improved life style

Sustainability considerations-SO

CIA

L

Total employment-765960 (2005)

80% in processing units75% mother shrimp fishing

Gender equality, less crime, population control

Shrimp Industry Cluster in KhulnaIN

DU

STR

Y C

LUST

ER

Shrimp Research Institute

Modern Hatcheries

Training Institute

University

Improved Intensive Gher

Hi-Tech Processing Plant

Transportation Facilities


DU

STR

Y C

LUST

ER

Training InstituteHatcheryResearch InstituteUniversityProcessing PlantSundarbans...


DU

STR

Y C

LUST

ER

Investment Required-

Sources of Fund-

Implementation Period- 2008-2011

Government, FDI, Local Interested Groups

$ 20 Million

Success StorySU

CC

ESS

STO

RY

Thailand


Industry AnalysisIN

DU

STR

Y A

NA

LYSI

S

A growth of 10% production of shrimp in Asia

creates a 10.5% growth of market in

USA

Industry AnalysisM

AJO

R E

XPO

RTE

RS

Source: Global Trade Atlas, with FAS estimates.

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

$Bill

ion

ThailandChinaIndonesiaIndiaDenmarkNetherlandsMexicoCanadaEcuadorMalaysiaBelgiumBrazilArgentina

Industry AnalysisM

AJO

R IM

POR

TER

S



0

0.5

1

1.5

2

2.5

3

3.5

4

$Bill

ion

USJapanSpainFranceUKBelgiumDenmarkItalyCanadaNetherlandsGermanySouth Korea

THE

SHR

IMP

MU

STs

Be safe

Have a Good Taste

Not too Expensive

Be Large Sized

Be Healthy

Be Produced without damaging the Environment

Be Produced by respecting Ethical principles (Child work, fair prices etc.)

Industry Analysis

Reviving StrategiesR

EVIV

ING

STR

ATE

GIE

S

Industry Cluster Model

Develop new MarketsInvest in value added

productsFocus on FDILobbing through trade

fairs, promotion etc.

Phase 1:Mother shrimp

ToProcessing

Phase 2:ProcessingToMarketing

2008-2011

2011-2015


TH

AN

K Y

OU

AQ&Further Queries: [email protected]

Appendix

Problem_StatementProblems_DetailsProblem_ChainVisionRationale_for_Selecting_the_Vision_2015Industry_ AnalysisBusiness_Development_StrategiesLeading Exporters of Shrimp in 2004Leading Importers of Shrimp in 2004Growth of Shrimp Sector as an Export Industry in last 20 YearsTotal Employment GenerationExport DataImport Data (International)SSOQShrimp Price comparison Japan vs USATypology of Shrimp production in BangladeshSteps to Final price of ShrimpRange of Shrimp Product Exported

SustainabilityIndustry Cluster Industry AnalysisReviving Strategies


Age

nda

Problem_StatementProblem_Details

Problem_ChainVision

Value_Addition_Through_Vision_2015Industry_ Analysis

Business_Development_Strategies

Background Information

Take Away

Extreme Disparity between Demand Side & Supply Side in value chain

Pro

blem

_Sta

tem

ent

•Inappropriate collection of mother shrimp & PL

•Inadequate knowledge•Viral infection

•Poor bargaining power•Lack of quality fish feed

• Inadequate supply of raw material

•Lack of international Lobbing•Negative image and lack

of marketing efforts

•Not enough R&D endeavors

•Indifference of Government

•Insufficient infrastructure

Shrimp Culture LevelProcessing UnitMarketing/ Exporting

Pro

blem

s_D

etai

ls

Processing Unit

Parent Stock Fishing

Marketing

Inap

prop

riate

col

lect

ion

of M

othe

r Shr

imp

& P

L

Inad

equa

te k

now

ledg

e

Vira

l inf

ectio

n

Poo

r bar

gain

ing

pow

er

Lack

of q

ualit

y fis

h fe

ed

Hig

h M

orta

lity

Rat

e

Increasing Volume of Problems

Prob

lem

_Cha

in

Processing Unit


Marketing

Decreasing Volume of Supply of Shrimps

Inappropriate collection of Mother Shrim

p & PL

Inadequate knowledge

Viral infection

Poor bargaining power

Lack of quality fish feed

High M

ortality Rate

Supply Decreases

Prob

lem

_Cha

in

100% 100%

100% 100%

30%

30%

Processing Unit


Marketing100% Capacity Utilization

Prob

lem

_Cha

in

4 Years

$2.5 Billion Export90% from Khulna Region

While 2006-’07 export is $515 million

By 2015, total shrimp industry export will reach $2.5 billion; contributing 90% from Khulna region.

Visi

on

Valu

e_A

dditi

on_T

hrou

gh_V

isio

n_20

15

•Strengthening the nation’s economy

•Reducing vulnerability being dependent on one single major export sector

•Socio-economic development of highly ignored southern region

•100% retention of export led profit

Indu

stry

_ A

naly

sis

Porter’s Analysis

Vietnam, China,

Thailand, India,

Ecuador, Argentina

Threat of New Entrants

Threat of Substitute

Bargaining Power of Buyers

Bargaining Power of Suppliers

Rivalry Of Competitors

Competitive Forces

HIGH

Vannamei in China

MEDIUMEuropean

Union

HIGH

LOW LOW

Major Role

Players


0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

$Bill

ion


Lead

ing

Expo

rter

s of

Shr

imp

in 2

004

Indu

stry

_ A

naly

sis

Porter’s Analysis

Vietnam, China,

Thailand, India,

Ecuador, Argentina






Competitive Forces

HIGH

vannamei in China

MEDIUMEuropean

Union

HIGH

LOW LOW

Major Role

Players


0

0.5

1

1.5

2

2.5

3

3.5

4

$Bill

ion


Lead

ing

Impo

rter

s of

Shr

imp

in 2

004

Indu

stry

_ A

naly

sis

Porter’s Analysis

Vietnam, China,

Thailand, India,

Ecuador, Argentina






Competitive Forces

HIGH

vannamei in China

MEDIUMEuropean

Union

HIGH

LOW LOW

Major Role

Players


Hatchery Process

Cultured Fry

Deep Water FryFishing

Wild Fry

DistributorsFarmersDepots

Processors

Export Market Distributors &

Retailers

Local Market Distributors &

Retailers

Customers

Bus

ines

s_D

evel

opm

ent_

Stra

tegi

es

Standardizing the process of collecting Mother Shrimp & PL

Launching Basic Education and Field Related Practical Training

Promoting Sufficient preventive measures to check viral effects

Collaboration with the universities and launching shrimp research institute

Bus

ines

s_D

evel

opm

ent_

Stra

tegi

es

Bus

ines

s_D

evel

opm

ent_

Stra

tegi

es

Empowering the cultivators.

Establishing quality feed plants within the nation.

Bus

ines

s_D

evel

opm

ent_

Stra

tegi

es

Value addition to the core product

Arranging international shrimp export fair in Bangladesh

Bus

ines

s_D

evel

opm

ent_

Stra

tegi

es

Improving electricity supply, road transport and reviving Mongla sea port

Formulating Bangladesh Shrimp Regulatory Commission and a time-bound and integrated shrimp export policy

Encouraging financial institutes to finance this sectors

Vertical Integration & Improved Traceability.

Take

_Aw

ay

Extreme Disparity between Demand Side & Supply Side in value chain.

By 2015, Achieving Export 5 Times Greater Than Now.

Developing an Industry cluster in Khulna region

Queries?

Further Queries: [email protected]

ATDP DANIDA SSOQUSAIDEUBCASEPB…..& several websites.

Sec

onda

ry_I

nfor

mat

ion_

Sou

rces

-


0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

$Bill

ion


Lead

ing

Expo

rter

s of

Shr

imp

in 2

004


0

0.5

1

1.5

2

2.5

3

3.5

4

$Bill

ion


Lead

ing

Impo

rter

s of

Shr

imp

in 2

004

Growth of Shrimp Sector as an Export Industry in last 20 Years

Recent Trends

Battle Of Minds 2007, Khulna University

Education

production of shrimp

shrimp culture

shrimp musts

sustainable shrimp cultivation

mother shrimp fishing

stories kconsulting

employment generation

economic growth