Global Country Report On Shrimp business feasibility with Bangladesh

Guided By:
Prof. Yash Bhatt

Presented By:
Suman Golani (B-59) Sweta somaiya (B-28) Chirag Agrawal (B-49) Christo Jiji (B-07) Kirit Solanki(B-13) Shaktisinh Parmar(B-32)

INTRODUCTION OF BANGLADESH

In 2013 the estimated population was at 160 million. About 89% of bangladeshis are Muslims followed by 8% Hindus , 1% Budhists and 0.5% Christians and has highest population density in the world. It ranks 8th in the world in terms of population.

ITRODUCTION OF BANGLADESH IN SHRIMP

Shrimp industry has taken a key position in the economy of Bangladesh and has 1.3 million fishers. Currently, the shrimp sector is generating foreign exchange earning of about US $ 370 million annually. The contribution of the industry to the shrimp production and export has been increasing over the last 15 years at a rate of about 20% per year.

Shrimp is one of the largest single commodities in terms of value and is accounted for nearly 17 % of total value of seafood products traded internationally and values more than US$ 14 billion. Nearly 6 million tonnes shrimps are produced globally i.e. captured and cultured. Approximately 70 % of produced shrimps are traded internationally, which makes it the most important and principal fisheries commodity worldwide FAO (2009).

. CULTURED SPECIES

All cultured and majorly captured shrimps across the globe belong to Penaeidae family. The giant tiger shrimp 'Penaeus monodon' accounted for almost 85% of global shrimps production. (shrimp news.com, 2009). In India, Peneaus monodon, named, tiger shrimp is the most commonly cultured species with the established and suitable advanced technology.

THE DIFFERENT SHRIMP SPECIES CULTURED GLOBALLY ARE:

Giant Tiger shrimp (Penaeus monodon) Western White shrimp (Penaeus vannamei) Western Blue Shrimp (Penaeus stylirostris) Brown Tiger Shrimp (Penaeus esculentus)

TIGER SHRIMP

..

At present, about 80 per cent of the shrimp culture activities in the country are under traditional/ extensive systems - Coastal Aquaculture Authority, (2006). Shrimp farming provides high returns in terms of investment in areas of production, processing and exports and is regarded as a high pay-off economic activity (Krishnan et al. 1999, 2000).

RESEARCH PURPOSE
The principle objectives of my research are, To explore the current shrimp business environment in India. To analyse the performance of aquaculture industry specifically shrimp aquaculture. To investigate the opportunity areas and develop management of aquaculture shrimp industry. To instigate a new approach and model to improve the quality of cultured Indian shrimp.

BENEFITS OF SHRIMP FARMING IN BANGLADESH

The climate and environment of Bangladesh is very suitable for shrimp farming. Easy source of water and necessary elements. Low cost labor and other management costs are also minimum. In a word, shrimp farming in Bangladesh has many benefits and opportunities. You can take this earning opportunities for making a good profit form of shrimp farming business.

SWOT ANALYSIS

STRENGTHS :
Bottom-up management approach Limited need for expansion of shrimp farming areas due to availability of abundant farm. Environmentally favorable zonal crop calendar system. Small-scale shrimp farms with lower impact to the environment. Educated shrimp farmers. Topographically supportive natural water body, lagoons, and canal system. Goodwill and experience in producing high quality shrimps.

WEAKNESSES :
Lack of timely production Less government attention on the use of diesel generators Body. Lack of resources (human and physical). Lack of funding for research. Poor rural road network. Presence of socially marginalized Groups.

OPPORTUNITIES :
Expanding demand for Indian shrimps from the export markets. Good reputation for the unique taste and quality. Possibilities of increasing industry Capacity. Opening up of new niche markets. Salt manufacturing as an alternative.

THREATS :
Political influences creating a difficult working environment. Less research. Bad reputation of the sector due to historical experiences. Impacts of global climate changes. Impact of inflation on input prices. Rivalry from other shrimp producing Countries.

Infrastructure required per farm

Land required is 8 hectares. Pumps & Piping Power Generators Electricity & lights Farm preparation Office & rest room Fresh water tanks Water Gates Mechanism

LEGAL FEASIBILITY

RULES, ACTS AND REGULATIONS

Fish Protection and Conservation Act, 1950, Subsequent Amendment and related Rules Marine Fisheries Ordinance, 1983 Territorial Water and Maritime Zone Act, 1974 Bangladesh Water and Power Development Board Ordinance, 1972 Manual for Land Management, 1990 Shrimp Farm Taxation Law, 1992 Bangladesh Environment Conservation Act, 1995 Bangladesh Environment Conservation Rules, 1997 Fish and Fish Product (Inspection and Quality Control) Ordinance, 1983 Fish and Fish Product (Quality Control) Rules, 1997 etc.

BANGLADESH GOVT. INITIATIVES

Under different development projects (shrimp culture project, Third Fisheries Project), government developed water management infrastructure for shrimp farming The government has declared Khas land suitable for shrimp culture as Chingri Mohal (Shrimp estate) Introduction of new leasing system of Khas land for shrimp culture In 1995 Land Ministry declared intensive semiintensive shrimp culture land as Shrimp Industry Land for providing various facilities to shrimp farmers.

conti

CONT
In another orders, (1) land Ministry imposed land development tax for shrimp industry land under private ownership @ Tk. 10 per decimal land (2) And fix lease value of Khas land for shrimp farming at the rate of Tk. 1500 per acre per year and it would increased at the rate 5% per year

LEGAL REQUIREMENT FOR SHRIMP FARMING IN BANGLADESH

Permission from BWDC to access water resource Bangladesh central land ministry approval Certificate from Forest Department Certificate from food ministry under Fish and Fish Products (Inspection and Quality Control) Ordinance 1983 (1) Without license from DOF fish, shrimp etc cannot be processed; (2) Fish shrimp etc will be processed in licensed processing factory according to set hygienic norms and principles; (3) The processing plants shall be run by abiding the set rules and conditions; (4) In transportation of fish, shrimp etc set hygienic conditions will be followed; (5) Exportable fish and fish products will be inspected and tested for quality; and safeness and health certificate will be given. Without health certificate low fish and fish products can be exported; and (6)Any breach of this law is punishable and license is liable to be cancelled Register the project with Secretariat of Industrial Approvals (SIA), Ministry of Industries and Government, by filing Industrial Entrepreneurs Memorandum (IEM), as it will have plant and machinery investment of more than INR 10 million.

LEGAL REQUIREMENTS IN INDIA

Registration with FDA Custom clearance and register with import authority on India Observance of packaging norms

TECHNICAL FEASIBILITY

HOW PRAWN PRODUCTION STARTS

METHODS OF PRODUCTION
Traditional method Seed supply Brood stock Nursery On growing technique Extensive Intensive Semi intensive

POINTS TO BE CONSIDERED BEFORE PRODUCTION(SEED SUPPLY)

Size of the seed Morphology Color Behavior External fouling Pathogen free Density

TECHNIQUES FOR STOCKING

Transportation Acclimation Nursing of shrimp post larvae Feed and feeding Nutrients Proteins Vitamins

SOCIAL ISSUES
Literature on social issues highlights both positive and negative impact of shrimp farming. Positive benefits include increased employment and a growth of average wage rates, growth in purchasing power, growth in number of earners in households, improved health, greater earning opportunities for women etc. Negative social consequences, include growth in income inequality, violence against women and the landless, privatization of public lands etc. Some of the other negative & positive impact of shrimp farming are:

MARGINALIZATION OF THE POOR

A research paper shows that the relationship between export oriented shrimp cultivation and human rights is clearly negative. Shrimp industry has brought thousands of jobs to the Bangladesh economy, and export earnings rose significantly, the profits have enriched a miniscule portion of the population. It is said that the child born today begins catching fry tomorrow, the children usually become involved at the age of five. Girls, it was found, were allowed to catch fry only till the age of 10-11.

BREAKDOWN OF TRADITIONAL LIVELIHOOD SUPPORT

AND INCREASING POVERTY

It also reports that the health of most of the people has suffered from transformation of the landscape and declining income. Many can no longer produce or purchase adequate nutrition for their families. Proximity to standing water has led to an increase in diseases like malaria, and diarrhoea. Women and children from poorer families are hired as cheap labour to catch shrimp in open water, requiring them to stand in cold and salty lime-mixed water for eight to ten hours a day which creates a skin problem in long run.

SOCIAL DISRUPTION
Villagers reported that hired hands from urban areas have introduced the use of drugs, alcohol, gamblings and prostitution in the area. Villagers report that gher employees have attacked and burnt villages and assaulted women and children In a typical incident on 7 November, 1990, 50 women and men were injured and one woman was killed when a wealthy shrimp farm owner and his armed men opened fire with rifles and machine guns. However, this sort of incidents rarely take place in the current scenario of shrimp farming as the locale shrimp farmers have surpassed the outsiders in number

CONFLICT
A report say that shrimp culture is highly controversial as there are many disputes between local and outside landowners, and conflicts between rice and shrimp producers. A report highlight that shrimp culture has brought a number of problems and conflicts between paddy farmers and shrimp cultivators. Shrimp culture has led to social conflicts over land tenure and user rights. Agitation between those groups in favour of shrimp culture and those opposed has led to conflicts, fragmenting and dividing community and migrant labourers have been accused of creating greater personal insecurity for women.

GENDER
A report show that violation of women by the guards of shrimp farms has been a common phenomenon. Women are particularly vulnerable since some of their husbands have either migrated to find work or are in hiding because of their involvement in protest activities. Women involved in organized resistance to the expansion of shrimp cultivation have been physically and verbally abused. A number of these attacks have resulted in the death of unarmed women. However, this sort of incidences particularly resistance to the expansion of shrimp cultivation were organised by the anti shrimp groups and occurred in the past/ or at the beginning of shrimp farming.

MARKETING FEASIBILITY
Markets

preference for large size shrimp should utilise its strengths by effectively utilising agricultural land. The price policy needs to be considered as a balance between the competitive market price and the maximum beneficial price. The marketing campaigns for freshwater shrimp need to be comprehensively designed taking into account both marketing and aquaculture.

PORTER'S FIVE-FORCE THEORY

Threat of new entry: Competitive Rivalry: Threat of substitute products: Bargaining power of suppliers:

MARKETING STRATEGY

A marketing strategy or marketing mix is a set of controllable variables that a firm or organisation can use to influence buyers response. Four Ps will be used to identify the necessary variables

PRODUCT STRATEGY

The most fundamental level is the core product. The second level is the formal product. The augmented product.

SCHEMATIC IMAGE OF SHRIMP PRODUCT:

PRICE STRATEGY

PLACE STRATEGY

PROMOTION STRATEGY

Broad view says that each of the four Ps belongs to the marketing communication mix. Narrow view uses promo tools, and include various forms of advertising, packaging, sales-presentations and demonstrations, point-of purchase displays.

FINANCING FOR PROMOTION STRATEGY

Affordable method Percentage of sales method Competitive-parity method Objective-and-task method

FINANCIAL FEASIBILITY

Project Economics Descriptions Details

Internal Rate of Return

Payback Period Project Financing Descriptions Owners Fund (10%) Bank Loan (90%)

60%
2.5 years

Details 2,09,716 18,87,444

Markup to the Borrower

Tenure of the Loan Grace period

8%
8 years 1 year

SPACE REQUIREMENT

MACHINERY AND EQUIPMENT

FURNITURE AND OFFICE EQUIPMENT

COST OF RAW MATERIAL

HUMAN RESOURCE REQUIREMENT

REVENUE

THANK YOU..