AN ANALYSIS OF SHRIMP VALUE CHAIN AND IDENTIFY THE RISK MANAGEMENT ADOPTION BEHAVIOR AMID VALUE CHAIN ACTORS IN SOME SELECTED AREAS OF THE KHULNA DISTRICT

Abstract

Fisheries sector is playing an important role in the economy of Bangladesh from the ancient time. The overall objectives of the present study were to identify the activities conducted by different actors in shrimp value chain, calculate the corresponding costs and earnings of those activities of the actors and evaluate the distribution of revenue, cost and profit along the chain, do situational analysis (SWOT analysis) of shrimp value chain and to identify the risks faced by the shrimp value chain actors and their management technique. Dumuria and Paikgacha upazilla of Khulna district were selected for the study based on intensive cultivation of shrimp. Simple random sampling technique had been used for collecting data from 100 shrimp farmers, 20 wholesalers, 3 commission agents and 2 processors by using structured interview schedule. After analyzing the data, it found that order to produce and export one kilogram of shrimp, farmers had to bear 78% of the costs, 64% of the revenue, and 21% of the profit. Despite making a higher contribution to revenue and expenses than any other group, farmers did not do so in a profit. Conversely, the wholesaler only retained 19% of revenue and 7% of costs, while absorbing 57% of the profit. Per kilogram of shrimp, the processor contributed 16% in revenue, 14% in expenses and 20% in profit. In comparison to other actors, wholesalers therefore always gain. Farmers have always kept a larger portion of revenue and costs compared to a smaller portion of profit. The commission agent has not significantly altered as usual. The most notable beneficiaries are the wholesalers, whose profit share has consistently been high relative to revenue and expense sharing. This study also identified some of the problems and barriers associated with shrimp farming. Problems faced by the respondents were ranked on the basis of extent of magnitude. The problems should be removed comprehensively through an integrated program for the overall development of shrimp value chain. Among the risk factors, 65% shrimp farmers termed natural disaster as the biggest risk factor.75% farmers were used net around four side of the gher as risk mitigation technique. Most of the farmer said that they do not enough financial support from government.