Assignment Name: Study on Value Chain Management in the Shrimp Business in Khulna, Satkhira, and Bagerhat Districts

Country: Bangladesh

Client Name: Rural Friends Agro Network (RUFAN)

The “Study on Value Chain Management in Shrimp Business in Khulna, Satkhira, and Bagerhat Districts” was designed to evaluate the existing value chain dynamics in shrimp production, processing, and export from Bangladesh. The shrimp sector is a vital component of Bangladesh’s economy, contributing significantly to export earnings and the livelihoods of thousands in coastal areas. However, inefficiencies and challenges in value chain management—including poor infrastructure, limited market access, and inadequate practices in farming, processing, and distribution—have restricted its growth potential.

The study aimed to:

• Analyze the structure and function of the shrimp value chain, identifying key stakeholders and their roles.
• Identify challenges at each stage of the value chain, including production, collection, processing, and export.
• Explore opportunities for improving efficiency, traceability, and sustainability in shrimp farming and processing.
• Provide actionable recommendations to enhance competitiveness and compliance with international market standards.

The project focused on three major shrimp-producing districts—Khulna, Satkhira, and Bagerhat—selected for their economic importance in the sector. A mixed-method approach was employed, combining stakeholder consultations, field surveys, and desk research. The findings provided a comprehensive understanding of the value chain and highlighted areas for targeted interventions to improve shrimp business outcomes.

DM WATCH successfully executed a comprehensive range of services tailored to the intricate needs of the shrimp industry’s supply chain management:

Inception and Planning:

• Conducted an inception meeting with stakeholders, including shrimp farmers, processors, exporters, and government officials, to finalize objectives and study design.
• Prepared a detailed work plan outlining timelines, data collection methodologies, and roles and responsibilities.

Desk Research and Secondary Data Review:

• Reviewed existing literature, reports, and policies on shrimp farming and value chain management in Bangladesh.
• Analyzed secondary data from government sources, industry reports, and export statistics to provide context and background for the study.

Stakeholder Mapping and Engagement:

• Identified key stakeholders in the shrimp value chain, including farmers, depot owners, processors, exporters, and regulatory bodies.
• Established communication channels with stakeholders to facilitate data collection and participation in the study.

Primary Data Collection:

• Conducted Key Informant Interviews (KIIs) with 25 stakeholders, including shrimp farmers, depot managers, processors, and exporters, to understand their roles and challenges within the value chain.
• Facilitated Focus Group Discussions (FGDs) with shrimp farmers and workers to capture community perspectives on challenges in production and marketing.
• Conducted field observations at shrimp farms, depots, and processing plants to document practices, infrastructure, and compliance with standards.

Value Chain Analysis:

• Mapped the value chain stages, from production to export, highlighting key processes, costs, and profit margins.
• Identified bottlenecks, inefficiencies, and gaps in infrastructure, logistics, and market access.
• Assessed the impact of regulatory compliance, certification requirements, and international market standards on the shrimp business.

Data Analysis and Synthesis:

• Analyzed quantitative and qualitative data to identify trends, challenges, and opportunities in the shrimp value chain.
• Used visual tools, such as flowcharts and graphs, to present the structure and dynamics of the value chain.

Report Preparation:

• Prepared a comprehensive report detailing findings, including:
• Key challenges in production, processing, and export stages.
• Analysis of stakeholder roles and interactions within the value chain.
• Identification of high-impact areas for improvement, such as traceability systems, cold chain infrastructure, and market linkages.

Recommendations

Proposed actionable recommendations to enhance value chain efficiency and compliance, including:

• Adoption of sustainable farming practices and certification standards.
• Strengthening market linkages and partnerships between farmers and exporters.
• Investments in cold chain infrastructure and logistics to reduce post-harvest losses.

Validation and Dissemination:

• Organized a validation workshop with stakeholders to present preliminary findings and gather feedback.
• Finalized the report incorporating stakeholder inputs and disseminated it to relevant government bodies, industry associations, and development partners.

This study provided an in-depth analysis of the shrimp value chain in Khulna, Satkhira, and Bagerhat Districts, offering evidence-based recommendations to improve efficiency, sustainability, and competitiveness. It served as a roadmap for stakeholders to address systemic challenges and enhance the growth potential of Bangladesh’s shrimp sector.