KARACHI: Fish exporters are feeling the pinch of a downtrend in global prices, with some of them saying foreign buyers are not ready to purchase Pakistani seafood products even at lower rates.
Exports volume of fish and its products remained almost the same at last year’s level of 15,000 tonnes in July-August 2015, but their value plunged to $32.7 million from $41m. The average unit price in the two months fell to $2.19 a kilogram from $2.73 in the same period last year.
Mohammad Moazzam Khan, technical adviser at WWF-Pakistan, attributed the decline in exports to slowdown in the international market, low price for Pakistani shrimp (peak landing season August and September in Pakistan), aggressive competition with Indian cultured Whiteleg shrimp and exports of low-price products like sardinellas, mullets and shads.
He said that even medium-price products, such as Indian mackerel, are not available. Other reasons include overfishing — all major high value fishes such as snappers, Spanish mackerels and eels have almost vanished.
Pakistan Seafood Industries Association (PSIA) Chairman Muslim Muhammadi said a slump in prices from August in the Far East, Gulf and China has started affecting exports of seafood products to these destinations.
Exports of fish and its products plunged to 6,408 tonnes ($15m) from 8,528 tonnes ($17.6m) in July. Stocks with exporters are piling up as a result, he said.
Out of total landing of fish and fishery products, around five per cent are consumed locally while the rest are exported, he said.
Akhlaq Hussain Abidi of Akhlaq Enterprises said shrimp prices in the Far East markets are lower by one dollar to $1.5 per kg. “Foreign buyers are not ready to take our products even after offer of more discounted rates from local exporters.”
He said shrimp prices in European markets are stable and better, but “unfortunately our government has recently imposed an illogical ban on exports to European Union countries”.
Abidi said there was normal landing of big shrimp as against bumper landing of kiddy shrimp which is causing an oversupply situation at the harbour.
Pakistan’s seafood exports in 2014-15 stood at 140,639 tonnes ($349.5m) compared to 150,498 tonnes ($369m) in 2013-14. The average unit price in FY15 was $2.49 per kg versus $2.45 in the preceding year.
The EU banned imports of seafood from Pakistani in April 2007 due to systemic failure when a senior naval officer was holding the post of Director General Marine Fisheries Department (MFD). In 2014, however, the 28-nation bloc allowed exports from only two Pakistani exporters without undertaking any inspection or visit at the harbour and processing units. In the meantime, exporters found the Far East and Gulf markets and fetched better prices.
Published in Dawn, October 9th, 2015
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