MARINE PRODUCTS

Presenter: Sameep Bansal MBA ² International Business

ASIA ECONOMY WATCH JUNE 2008

India·s seafood exports, which stagnated few years back, are likely to touch over $3.5 billion from current level of $2.2 billion by 2009, provided a key thrust area include value-addition, expansion of aquaculture, technological upgradation and tapping unexplored resources.
In a paper brought out by Associated chambers of commerce & industry of India (ASSOCHAM) on ´Market of Seafoods in Indiaµ,

it has been projected that India·s Seafood exports, which remained at $1.6 billion in 2005-06 and is anticipated to reach around $2.2 billion in 2007-08, have potential to accelerate faster in view of their growing demand in trading blocks like the EU, Middle East, China, Canada, Russia.

SOURCES
UN

Yearbook of International Trade Statics. DGCI&S India·s exports of principle commodities & countries. FAO Commodity Statistics. UN Commodity Statistics Facts for You: November 2006 Facts for You: June 2005 Survey of Indian Industry 2007 www.mpeda.com

Solutions and Golden future ahead.OBJECTIVES COVERED Overview Marine Exports What to Export? Know your Product Where to Export? The hungry World. . How to Export? Problems you may face.

OVERVIEW MARINE EXPORTS .

which are highly conductive for developing capture as well as culture fishes. Has one of largest area under Estuaries. backwaters and Lagoons. while China has 69% share. . Global Share of India is 4.THE MARINE INDUSTRY ² SOME FACTS Exported to more than 90 countries. India has one of longest Coastline of 8118 Km.2% at second Position.

contributes 1% to Indian GDP and 4. Indian Fishing Industry got a major boost after the declaration of EEZ (Exclusive Economic Zone) in 1977. Major Exporting States are AP.FACTS CONT Employees 30 Lac people. Major products are Shrimps. Potentially Unexplored states are Gujarat. Maharashtra.5 % to Agriculture and Allied products. squid and dried items. Kerala. Tamil Nadu. Orissa. West Bengal. frozen fish. cuttlefish. .

Until y 1960 Products were Dried Shrimps and Dried Fish y Market was neighboring countries.KNOW YOUR MARKET ² TRENDS IN EXPORTS WWW.3. 1. . USA emerged as single largest buyer. 1977 y ² 2001 Japan Emerged as single largest buyer followed by Western European Countries.8363.4% of the total exports from India. From y 1960 ² 1977 Products were Frozen Shrimps y Major market beside neighboring countries were USA.MPEDA.92 crore in 1961-62 to Rs.COM Marine product exports has steadily grown over the years. from a mere Rs. Japan.53 crore in 2006-07 .

. y The product preference is shifting from Frozen Shrimps to Processed Products and other marine products. 2005 ² till date y European union became largest importer importing 33% of Products y Japan 16.KNOW YOUR MARKET 2001 y CONT. ² 2004 USA again topped the charts as Single largest importer of Indian Marine Products.83% y South East Asia 7% y Middle East Asia is New emerging Market.18% y USA 16.12 % y China 13.

5 Million Tonnes Fresh waters and Ponds y Total Available ² 2. y Production ² 2 Tonnes per Hec. Total production y Potential ² 15 Million Tonnes y Production ² 2. Production Per Hectare (Reservoirs and Tanks) y Potential ² 600 Kg per Hec. y Utilized ² 1.MARINE PRODUCTS ² THE UNTAPPED POTENTIAL THE HINDU ² SURVEY OF INDIAN INDUSTRY 2007 Meager utilization of natural gift.5 Million Hectares. .4 Million Hectares. y Production ² 100 Kg per Hec. Production Per Hectare (Pond Culture) y Potential ² 5 Tonnes per Hec.

y What to Export?? .

Tuna Fish . y Cultured Shrimp y Battered Shrimp y Cook Shrimp y Fish Fillet.Squids . .Shark .Lobster .WHAT TO EXPORT? Traditional Items: y Shrimps y Squids y Cuttlefish Value Added Items.Oyster .Frozen Fish .

61 165.69 -11.8 461329 6646.26 171.62 15.WHAT TO EXPORT Year 2002-03 Q V $ 2003-04 Q V $ 2004-05 Q V $ 2005-06 Q V $ 2006-07 Q V $ Export 467297 6881.69 .2 612641 8363.3 1644.02 9.9 412017 6092 1330.74 147.47 -6.5 512164 7245.52 13.1 11.21 19.7 1478.55 -55280 -789.72 (%) 10.09 15.11 11.61 11.36 -94.14 49312 554.3 1424.83 -11.23 208.74 100478 1118.43 12.05 11.9 Variation 42827 924.71 50835 598.97 9.5 1852.

68 182344 998.7 67571 674.ITEM WISE EXPORTS ITEMS Frozen Shrimp % Share to Total 22 53.23 208.85 -3.25 -3.2 0 0.7 11.19 25.24 0.95 1.8 6.5 3.77 0.67 24293 183.82 44.44 -90 2.64 7.6 10.65 -5101 -7.46 2.72 -0.22 0.57 27.06 17.76 19.86 -9.48 2.14 512164 7245.32 126.3 26.23 0.16 40.95 1.62 15.47 38.69 5.35 149.16 47252 568.4 1.03 12.76 3.15 124.58 88407 454.77 1 1.19 45.8 8.44 11 8.49 2.18 10125 50.63 3.4 3.03 2.05 6050 248.25 7.49 8 6.75 3.22 51.24 0.45 5060 81.2 -4.17 35.72 -0.29 43.68 2478 64.19 55701 797.06 14.74 -1.71 13.19 2.02 -0.19 71.27 0.07 100478 1118.84 44 17.48 42.49 2.21 VARIATION -7784 234.8 1.64 60841 574.72 2.37 17.38 9 9.2 41.19 (%) -5.69 -5.74 7200 117.72 1.74 8.63 48.71 -20.48 45.75 1.26 270751 1452.4 42.5 -4.08 100 100 100 Q V $ UV$ Q V $ UV$ Q V $ UV$ Q V $ UV$ Q V $ UV$ Q V $ UV$ Q V $ UV$ Q V $ UV$ Q V $ UV$ APR-MAR 2006-07 137397 4506.08 997.88 321.33 19.43 6.36 14.12 2568 61.21 3.81 4 2.56 18.49 14167 132.43 12.06 8.99 5.02 APR-MAR 2005-06 145180 4271.58 130.29 2140 35.22 612641 8363.3 1644.22 5.88 53.93 3.79 Frozen Fin Fish Frozen Cuttle Fish Frozen Squid Dried items Live items Chilled items Others TOTAL .26 0.36 5.51 970.24 49651 549.56 30.37 175.25 2.18 96.51 52352 575.52 130.53 9.35 0.06 6730 99.53 1852.7 225.

Tamil Nadu and Gujarat.WHAT TO EXPORT . . followed by AP.TRADITION SO FAR. 53% (2008) y 200 world class Seafood processing factories. Kerala has 40 percent of the total processing Industries. Shrimp ² 20% of world·s imports.88% (2004). y Mainstay in India·s Exports 65.

CHANGING TREND The India·s exports of Shrimps and frozen Squid are declining year on year. y Sea brass. y Mullets. The trend is shifting towards Value Added Products and Processed Shrimps. One major reason of decline is Export of Cheaper Vannamei Shrimps from neighboring countries. y . New Potential Species are Mud Crabs. y Tuna Fish. and Pearl Spot fishes.

A SEAFOOD PROCESSING HUB The government has allowed import of raw materials required for processing plants. The processing zone started with 10 large scale private sector processing units. with investment of Rs 480 million. More Thrust is given on ´Ready to Eatµ and ´Ready to Cookµ kind of processed items. First seafood processing zone was developed in Kolkata. .INDIA .

Tuna fish exports are targeted to reach 400 million dollar by 2010. Andaman and Nicobar Island holds 25-30 per cent of tuna potential.TUNA FISH NEW FISH TO FRY Tuna fish is third most traded Fish internationally.NEW PRODUCTS . .

Mud Crab is identified as best substitute of Shrimps. . 2000 Crores. By using the technology 1 lakh tonnes of Mud Crabs can be produced giving revenue of Rs. Potential sites spotted for this are Tamil Nadu and Andhra Pradesh.NEW PRODUCTS ² MUD CRABS Technology for hatchery seed production of Mud Crabs and Sea Bass fish has recently been developed by CIBA (Central Institute of Brackish Water Aquaculture) and MPEDA .

The technology has been perfected in Southeast Asia. One kilogram of Sea Bass fish can give a revenue of Rs 100. Kerala. . Maharashtra. It can be produced in vast coastal region example Andhra Pradesh. and is in nascent stage in India. Tamil Nadu.NEW PRODUCTS ² SEA BASS FISH High valued Sea Bass Fishes can tolerate wide variation in environmental conditions.

Major Exporters Singapore.E-PAO. Indonesia and India. Sri Lanka. Malaysia. . Used in Aquariums around the World.NET Most popular among Hobbyist.ORNAMENTAL FISH ² NEW FISH IN TOWN WWW. Hong Kong. Thailand. Philippines. Taiwan.

Catfish. Japan and Europe.ORNAMENTAL FISH ² CONT. Loaches.58 Crores. Eels. growing by 6%. Global Trade of $5 Billion annually. The tropical ornamental fishes from North eastern and Southern provinces of India are in great demand in the hobbyists market . India Exports worth Rs 1. Major Importers USA. growing at 20% annually. Goby . Barbs. China and South Africa are Emerging Markets.

y . and therefore cheap. 14 NOV 2007 India mainly produces Black Tiger Shrimp (1. y Resistant to virus diseases.5 lac tonnes). It has faced stiff competition from Chinese Vannamei Shrimps because It has low production cost.VANNAMEI SHRIMPS MINT NEWS.

Margins from 3 tonnes of Vannamie Shrimp is more than margins from 3 tonnes of Indian Shrimps. Indonesia 4 lac tonnes and Vietnam 3.5 lac tonnes and there annual production is rising. China produces 6.5 lac tonnes. Thailand 4.VANNAMEI SHRIMPS CONT Per Hectare production is 20 tonnes. against 2-3 tonnes of Black tiger Shrimp. .5 lac tonnes .

y Where to Export?? .

WHERE TO EXPORT? Declining Markets EU (26%) Spain y UK y Italy y USA (23%) Japan (16%) Emerging Markets ‡ Vietnam ‡ Belgium ‡ Canada ‡ Germany ‡ Hong Kong ‡ China(14%) .

83 13.06 9.2 34.78 -20.97 20.41 -12059 -291.79 55817 1639.27 2.02 137076 849.44 512164 7245.43 12.62 15.45 191.55 41.03 Q V $ Q V $ Q V $ Q V $ Q 7.47 36.93 12.06 67650 616.3 167.24 372.05 100 100 100 V $ Q V $ Q V $ Q V $ APR-MAR 2006-07 67437 1353.21 48.COUNTRY WISE EXPORTS COUNTRY JAPAN % share to Total 11 16.23 208.44 29.93 APR-MAR 2005-06 59785 1155.75 612641 8363.97 33 13.6 19.85 -21.36 4 4.8 17.44 4.38 299.21 VARIATION 7652 197.46 9 9.64 40234 572.72 % 12.86 203513 1156.06 7510 30.52 67.15 7 16.96 259.43 23599 371.98 CHINA South East Asia 11 Middle East OTHERS TOTAL .12 16.3 1644.32 26.99 60140 585.67 126.82 12.47 82.69 USA European Union 24 33 32.42 36.65 69.25 484.27 9.49 5.92 16691 184.8 297.97 262.74 18.48 32.7 136.31 100478 1118.4 37.84 66437 307.92 610.81 5.56 56924 757.37 7.2 43758 1347.85 3.9 130.6 -17.19 28.53 1852.54 12918 625.72 1329 63.18 16.62 136842 2134.44 -75.08 149760 2759.85 132.08 13.7 22270 307.

How To Export? .

but the carriage is declining over the years. the emerging high capacity ports are Haldia y Tuticorin y Kochi y .HOW TO EXPORT? Chennai Port handles 24% in terms of Value.

MPEDA ² MARINE PRODUCTS EXPORTS DEVELOPMENT AUTHORITY Head Quatered ² Kochi (Kerela) 6 Regional/ 4 Sub.Regional Offices 2 International Offices ² New York and Tokyo. .

.VISION .MPEDA Our vision is to achieve the export of 5 Billion US $ worth marine products by 2014-15 that too with the 75% contribution of value added items.

Active participation in 15 International Trade Fairs. A delegation consisting of Indian Exporters were send to Japan to address the quality issue. The exporters made series of presentations in major cities of Japan. .MPEDA Logo Scheme ² to gain wide market acceptance.SCHEMES .

CHALLENGES .

from Rs 5 in 1991 to Rs.CHALLENGES Impose of Anti-dumping duty by US in 2004. escalating diesel prices i.e. Diesel accounts for 75% of Input cost. 40 present is major challenge to overcome. . Indian Exports are Single Product (Shrimp) and Single Market (USA and Japan) oriented Industry. Japan and EU imposed strict quality control standards on Indian Marine Products.

the financial institutions have lost confidence in Small and Medium Players dominated Indian Fisheries Industry. . Low scale Indian Exporters lack Risk Taking capacity to jump into technology Sophisticated Processed food Industry. The Global imports of Shrimp are declining and demand towards processed food is increasing. As a result of Above.CHALLENGES CONT.

MPEDA Indian Logo ² MPEDA logo scheme . ´Value addition has been considered as the thrust area.EXPORT STRATEGY It is necessary to treat marine products as technology Intensive sector. Indian seafood processing units will be encouraged to go in for value addition and export through setting up new units. expanding their capacity and diversifying their current activities. Mohan Kumar Chairman.µ G. tie ups in marketing of value added products and fish import for further processing and export in value added forms will be encouraged. investments. Foreign collaboration.

STRATEGY CONTINUED Products Mud Crabs y Tuna Fish y Sea Brass y Ornamental Fish y Markets y y y y y y Vietnam Belgium Canada Germany Hong Kong China Processed Exports Vannamei Shrimps .

Thank You .

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