Battle Of Minds 2007, Khulna University

Reviving Shrimp Industry In Khulna

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

Shrimp in Khulna can not sustain a long - Prothom Alo

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Khulna still promises sustainable shrimp cultivation

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Some countries succeed in shrimp culture tremendously

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

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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-E

NV

IRO

NM

EN

T

Sustainability considerations-E

CO

NO

MIC

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-S

OC

IAL

Total employment-765960 (2005)

80% in processing units

75% mother shrimp fishing

Gender equality, less crime, population control

Shrimp Industry Cluster in KhulnaIN

DU

ST

RY

CL

US

TE

R

Shrimp Research Institute

Modern Hatcheries

Training Institute

University

Improved Intensive Gher

Hi-Tech Processing Plant

Transportation Facilities


DU

ST

RY

CL

US

TE

R

Training Institute

Hatchery

Research Institute

University

Processing Plant

Sundarbans...


DU

ST

RY

CL

US

TE

R

Investment Required-

Sources of Fund-

Implementation Period- 2008-2011

Government, FDI, Local Interested Groups

$ 20 Million

Success StoryS

UC

CE

SS

ST

OR

Y

Thailand


Industry AnalysisIN

DU

ST

RY

AN

AL

YS

IS

A growth of 10% production of shrimp in Asia

creates a 10.5% growth of market in

USA

Industry AnalysisM

AJO

R E

XP

OR

TE

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

$B

illi

on

Thailand

China

Indonesia

India

Denmark

Netherlands

Mexico

Canada

Ecuador

Malaysia

Belgium

Brazil

Argentina

Industry AnalysisM

AJO

R I

MP

OR

TE

RS



0

0.5

1

1.5

2

2.5

3

3.5

4

$Bil

lio

n

US

Japan

Spain

France

UK

Belgium

Denmark

Italy

Canada

Netherlands

Germany

South Korea

TH

E S

HR

IMP

MU

ST

s

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

EV

IVIN

G S

TR

AT

EG

IES

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 Unit

Marketing/ Exporting

Pro

blem

s_D

etai

ls

Processing Unit

Parent Stock Fishing

Marketing

Ina

pp

rop

riat

e c

olle

ctio

n o

f Mot

her

Sh

rimp

& P

L

Ina

de

qua

te k

no

wle

dg

e

Vir

al in

fect

ion

Po

or b

arg

ain

ing

pow

er

Lac

k o

f qu

alit

y fis

h fe

ed

Hig

h M

ort

alit

y R

ate

Increasing Volume of Problems

Pro

ble

m_C

hai

n

Processing Unit


Marketing

Decreasing Volume of Supply of Shrimps

Inap

pro

priate

collec

tion

of M

oth

er S

hrim

p &

PL

Inad

eq

ua

te kn

ow

led

ge

Vira

l infec

tion

Po

or b

arg

ain

ing

po

we

r

La

ck o

f qu

ality

fish

feed

Hig

h M

ortality

Rate

Supply Decreases

Pro

ble

m_C

hai

n

100% 100%

100% 100%

30%

30%

Processing Unit


Marketing100% Capacity Utilization

Pro

ble

m_C

hai

n

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.

Vis

ion

Va

lue

_A

dd

itio

n_

Th

rou

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

Ind

ust

ry_

An

alys

isPorter’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

MEDIUM

European 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

$Bil

lio

n

Thailand

China

Indonesia

India

Denmark

Netherlands

Mexico

Canada

Ecuador

Malaysia

Belgium

Brazil

Argentina

Lea

din

g E

xpo

rter

s o

f S

hri

mp

in 2

004

Ind

ust

ry_

An

alys


Vietnam, China,

Thailand, India,

Ecuador, Argentina

Threat of





Competitive Forces

HIGH

vannamei in China

MEDIUM

European Union

HIGH

LOW LOW

Major Role

Players


0

0.5

1

1.5

2

2.5

3

3.5

4

$Bil

lio

n

US

Japan

Spain

France

UK

Belgium

Denmark

Italy

Canada

Netherlands

Germany

South Korea

Lea

din

g Im

po

rter

s o

f S

hri

mp

in 2

004

Ind

ust

ry_

An

alys


Vietnam, China,

Thailand, India,

Ecuador, Argentina

Threat of





Competitive Forces

HIGH

vannamei in China

MEDIUM

European Union

HIGH

LOW LOW

Major Role

Players


Hatchery Process

Cultured Fry

Deep Water FryFishing

Wild Fry

Distributors

Farmers

Depots

Processors

Export Market Distributors &

Retailers

Local Market Distributors &

Retailers

Customers

Bu

sin

ess_

Dev

elo

pm

ent_

Str

ateg

ies

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

Bu

sin

ess_

Dev

elo

pm

ent_

Str

ateg

ies

Bu

sin

ess_

Dev

elo

pm

ent_

Str

ateg

ies

Empowering the cultivators.

Establishing quality feed plants within the nation.

Bu

sin

ess_

Dev

elo

pm

ent_

Str

ateg

ies

Value addition to the core product

Arranging international shrimp export fair in Bangladesh

Bu

sin

ess_

Dev

elo

pm

ent_

Str

ateg

ies

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.

Tak

e_A

way

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

$Bil

lio

n

Thailand

China

Indonesia

India

Denmark

Netherlands

Mexico

Canada

Ecuador

Malaysia

Belgium

Brazil

Argentina

Lea

din

g E

xpo

rter

s o

f S

hri

mp

in 2

004


0

0.5

1

1.5

2

2.5

3

3.5

4

$Bil

lio

n

US

Japan

Spain

France

UK

Belgium

Denmark

Italy

Canada

Netherlands

Germany

South Korea

Lea

din

g Im

po

rter

s o

f S

hri

mp

in 2

004

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

Recent Trends